Topic: Decoding Pradhan Mantri Shram Yogi Maan-dhan pension plan
Topic in Syllabus: General Studies Paper 3: Indian Economy
Why in news?
The new pension scheme, Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), announced in the interim budget for unorganised workers has now been rolled out.
More about on news:
- The scheme announced in the Interim Budget was notified by the Ministry recently.
- As many as 42 crore workers are estimated to be engaged in the unorganized sector of the country.
- It guarantees a monthly pension amount of Rs. 3,000 from the age of 60 years.
- However, the scheme, which aims to cover 10 crore unorganised workers, is not for everyone as it has multiple conditions in terms of eligibility.
The unorganised workers mostly engaged as home based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, rickshaw pullers, landless labourers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio- visual workers and similar other occupations.
- The unorganised sector workers, with income of less than Rs 15,000 per month and who belong to the entry age group of 18-40 years, will be eligible for the scheme.
- Those workers should not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO).
- He or she should not be an income tax payer.
Benefits under Pradhan Mantri Shram Yogi Maan-dhan Yojana:
- Minimum Assured Pension: Each subscriber under the scheme will receive minimum assured pension of Rs 3000 per month after attaining the age of 60 years.
- In case of death during receipt of pension: If the subscriber dies during the receipt of pension, his or her spouse will be entitled to receive 50 percent of the pension as family pension. This family pension is applicable only to spouse.
- In case of death before the age of 60 years: If a beneficiary has given regular contribution and dies before attaining the age of 60 years, his or her spouse will be entitled to continue the scheme subsequently by payment of regular contribution or may even exit the scheme.
Salient Features of PM-SYM:
Contribution by the Subscriber:
- The subscriber’s contributions to PM-SYM shall be made through ‘auto-debit’ facility from his/ her savings bank account/ Jan- Dhan account.
- The subscriber is required to contribute the prescribed contribution amount from the age of joining PM-SYM till the age of 60 years.
Matching contribution by the Central Government:
- PM-SYM is a voluntary and contributory pension scheme on a 50:50 basis where prescribed age-specific contribution shall be made by the beneficiary and the matching contribution by the Central Government as per the chart.
- For example, if a person enters the scheme at an age of 29 years, he is required to contribute Rs 100/ – per month till the age of 60 years. An equal amount of Rs 100/- will be contributed by the Central Government.
Enrolment Process under PM-SYM:
- The subscriber will be required to have a mobile phone, savings bank account and Aadhaar number. The eligible subscriber may visit the nearest CSCs and get enrolled for PM-SYM using Aadhaar number and savings bank account/ Jan-Dhan account number on self-certification basis.
- Later, facility will be provided where the subscriber can also visit the PM-SYM web portal or can download the mobile app and self-register using Aadhar number/ savings bank account/ Jan-Dhan account number on self-certification basis.
- The enrolment will be carried out by all the Community Service Centers (CSCs).
- The unorganised workers may visit their nearest CSCs along with their Aadhar Card and Savings Bank account passbook/Jandhan account and get registered themselves for the Scheme.
- Contribution amount for the first month shall be paid in cash for which they will be provided with a receipt.
- All the branch offices of LIC, the offices of ESIC/EPFO and all Labour offices of Central and State Governments will facilitate the unorganised workers about the Scheme, its benefits and the procedure to be followed, at their respective centers.
- In this respect, the arrangements to be made by all offices of LIC, ESIC, EPFO all Labour offices of Central and State Governments are given below, for ease of reference:
- All LIC, EPFO/ESIC and all Labour offices of Central and State Governments may set up a “Facilitation Desk” to facilitate the unorganised workers, guide about the features of the Scheme and direct them to nearest CSC.
- Each desk may consist of at least one staff.
- They will have backdrop, standi at the main gate and sufficient number of brochures printed in Hindi and regional languages to be provided to the unorganised workers.
- Unorganised workers will visit these centres with Aadhaar Card, Savings bank account/ Jandhan account and mobile phone.
- Help desk will have onsite suitable sitting and other necessary facilities for these workers.
- Any other measures intended to facilitate the unorganised workers about the Scheme, in their respective centers.
- PM-SYM will be a Central Sector Scheme administered by the Ministry of Labour and Employment and implemented through Life Insurance Corporation of India and CSCs.
- LIC will be the Pension Fund Manager and responsible for Pension pay out.
- The amount collected under PM-SYM pension scheme shall be invested as per the investment pattern specified by Government of India.
Exit and Withdrawal:
- Considering the hardships and erratic nature of employability of these workers, the exit provisions of scheme have been kept flexible. Exit provisions are as under:
- In case subscriber exits the scheme within a period of less than 10 years, the beneficiary’s share of contribution only will be returned to him with savings bank interest rate.
- If subscriber exits after a period of 10 years or more but before superannuation age i.e. 60 years of age, the beneficiary’s share of contribution along with accumulated interest as actually earned by fund or at the savings bank interest rate whichever is higher.
- If a beneficiary has given regular contributions and died due to any cause, his/ her spouse will be entitled to continue the scheme subsequently by payment of regular contribution or exit by receiving the beneficiary’s contribution along with accumulated interest as actually earned by fund or at the savings bank interest rate whichever is higher.
- If a beneficiary has given regular contributions and become permanently disabled due to any cause before the superannuation age, i.e. 60 years, and unable to continue to contribute under the scheme, his/ her spouse will be entitled to continue the scheme subsequently by payment of regular contribution or exit the scheme by receiving the beneficiary’s contribution with interest as actually earned by fund or at the savings bank interest rate whichever is higher.
- After the death of subscriber as well as his/her spouse, the entire corpus will be credited back to the fund.
- Any other exit provision, as may be decided by the Government on advice of NSSB.
Default of Contributions:
- If a subscriber has not paid the contribution continuously he/she will be allowed to regularize his contribution by paying entire outstanding dues, along with penalty charges, if any, decided by the Government.
Pension Pay out:
- Once the beneficiary joins the scheme at the entry age of 18-40 years, the beneficiary has to contribute till 60 years of age.
- On attaining the age of 60 years, the subscriber will get the assured monthly pension of Rs.3000/- with benefit of family pension, as the case may be.
Doubt and Clarification:
- In case of any doubt on the scheme, clarification provided by the JS& DGLW will be final.
Discuss the Benefits under Pradhan Mantri Shram Yogi Maan-dhan Yojana.