Thoughtful to think about a viable Inflation adjusted Pension Plan administered by Government.. NGDCs ..

 NGDCs .. 

Maybe some kind of minimum pension for almost all in old age today is around Rs12000/- yearly.. 

Maybe the Government can plan something like a modified French modelled Pension Scheme like all the ones working can select their retirement age and can regularly contribute one third of or six days salary or a sum that is less than the highest salary of the President of India as per the wish of of the contributer to the common Pension Pool Fund  constituted by Government .. 

The contributions shall not be refundable but can avail full pension anytime after 30 years of contribution kind of scheme..

 Probably to enjoy their full pension after their chosen date of retirement if it is after 30 years of non refundable  contributions ..

 Of course they can defer the retirement age to a later dates for 50 or even 60 years of service with continuing contributions if they want to have a better matching pension in tune with the salary of President .. 

Like if one contributes on all months regularly for more than thirty years or plus to the Pension Fund until his chosen retirement date, then his total contribution amount S (just the sum of all contributions without any interest) for 30 or more years (S = A(1+i)^30) needs to be interpolated further to decide on A the assumed first year's contribution where i is the average PPF interest rate at that time), the assumed  the last year's contribution (LYC) after calculating the assumed initial year's contribution A, is to be arrived at with a formula LYC = A*(1+i)^30 - A*(1+i)^29..

Comparing LYC to the Last Year Salary minimum scale Salary of a Government Post either state or center can give an official designation of an equivalent post in the Government Service and from the common pool half the salary of that designated post at minimum scale can be given to that employee with pay  revisions too In future adjusted to inflation .. Probably this can even be useful with Government and Private Employees  who contribute.. 

For an example if a chap contributes Rs.1000/- first year 5000/- in the second year, 5 lakhs in the third year, Rs.1000/- again in 4th year and 3 lakhs in 5th year and 10 lakhs in 6th year and so on as per varying income and contributions equivalent to the salary of President in the 30th to 35th years, and then asks , for the pension from Government with a Total Contribution of 50 lakhs in 35 years to the common pool, and as per that formula Assumed Initial Contribution is A = 50/(1+i)^30 is around Rs.5 lakh/- if interest rate i is assumed to be around 8% for PPF ..

If A is Rs.5 lakh, his LYC be better calculated as per the above formula LYC = 5lakh*(1.08)^30 - 5lakh*(1.08)^29 = Around 3.5 lakhs..

Then find an equivalent post in the Government Service that pay 3.5 lakhs per annum and designate the chap as a deemed retired fellow from that post .. and give a pension of around 1.75 lakhs as per that post with revisions brought in by the Government with time.. 

Maybe the Government can even have added funding from other contributors who are working and the non refundable sum acts as a big common surplus pool amount always .. 

In this way pensioner can think of overcoming the inflationary pressures too from time to time pay revisions by Government for that real post with deemed benefits for the retired .. 

Now there could be arguments that what if the total contribution falls below the minimum lowest salary level post of the Government.. Then perhaps Government can adjust deemed post as half or quarter or one tenth of the real post as they do for people not eligible for full pension with lesser service.. 

Even if the contribution is for 20 years or for 40 years initial assumed contribution A needs to be calculated based on a 30 year format.. 

Thought provoking to think about such a format for Pension organised by Government even for private sector employees as deemed employees of Government.. Probably even private sector can plan such schemes.. But then they may lack the trust of people in giving the deemed designation status as in Government in operating a project that span more than 30 years .. 🤔😲🙏 ..