Pradhan Mantri Shram Yogi Man-dhan Yojana (PMSYMY)
(A Voluntary
Contributory Pension Scheme for workers of unorganised sectors)
India has second largest population, numbering over 110
million, aged over 60 years in the world. Most of them are without assured
source of monthly income as only 12% of the
workforce (or approximately 58 million people) are covered
under various pension systems according to the 2011 Census. The percentage of
population in developed countries are above 50% and as high as 70% in Germany
and New Zealand.
Govt of India has launched National Pension System (a Defined
Contribution Pension Scheme replacing the Defined Pension Scheme) in 2004 to
provide pension for Govt employees. organized as well as unorganised sectors. In
2009, the scheme was extended to all Indian citizens from 18-60 years of age.
An
independent statutory body christened Pension Fund Regulatory and Development
Authority (PFRDA) was set up in 2013 to regulate and monitor pension funds in
the country. PFRDA’s Atal Pension Yojana
(which is evolved from NPS-Lite scheme) is hailed as a unique pension scheme as
it provides guaranteed pension. In order to make old age pension scheme more
attractive and provide the pension coverage to larger numbers of workers in
unorganised sector, launching of Prime Minister’s Shram Yogi Man Dhan Yojana (PMSYMY), a voluntary
and contributory pension scheme, was announced
by interim Honourable Finance Minister Shri Piyush Goyal during his Interim
Budget Speech on 1st Feb, 2019.
The salient features of PMSYMY are as under:
[1]
Objective:
The scheme seeks to provide an assured monthly pension of Rs
3,000 for workers in the unorganised sector with a monthly income of up to Rs
15,000 after the retirement age (60 years) if they monthly contribute to the
Pension Fund during their working tenure as per rules framed under the scheme.
[2] Target
Group:
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 list is indicative only and not an
exhaustive one.)
[3] Eligibility Criterion:
3.1 Age: 18 to 40 years at the time of application to join
the scheme.
3.2 Income: Monthly income not exceeding Rs 15,000/ per
month.
The subscribers covered under Employees Pension Scheme (under
NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’
Provident Fund Organisation (EPFO) or an income-tax assessee are not be
eligible.
[4] Monthly Contribution based on Entry Age and Matching
Contribution from Govt:
As the target pension amount is fixed at Rs. 3000/- per
month, the amount of monthly contribution depends upon the entry age as per the
Table given below. The Central Govt will also contribute the amount equal to
the member’s monthly contribution.
Table:
|
Entry Age (in years)
|
Superannuation Age (in years)
|
Monthly Contribution (Rs.)
|
|
Member's Mly Contri.
|
Central Govt's Mly Contri.
|
Total Mly Contri.
|
|
1
|
2
|
3
|
4
|
5 (3+4)
|
|
18
|
60
|
55
|
55
|
110
|
|
19
|
60
|
58
|
58
|
116
|
|
20
|
60
|
61
|
61
|
122
|
|
21
|
60
|
64
|
64
|
128
|
|
22
|
60
|
68
|
68
|
136
|
|
23
|
60
|
72
|
72
|
144
|
|
24
|
60
|
76
|
76
|
152
|
|
25
|
60
|
80
|
80
|
160
|
|
26
|
60
|
85
|
85
|
170
|
|
27
|
60
|
90
|
90
|
180
|
|
28
|
60
|
95
|
95
|
190
|
|
29
|
60
|
100
|
100
|
200
|
|
30
|
60
|
105
|
105
|
210
|
|
31
|
60
|
110
|
110
|
220
|
|
32
|
60
|
120
|
120
|
240
|
|
33
|
60
|
130
|
130
|
260
|
|
34
|
60
|
140
|
140
|
280
|
|
35
|
60
|
150
|
150
|
300
|
|
36
|
60
|
160
|
160
|
320
|
|
37
|
60
|
170
|
170
|
340
|
|
38
|
60
|
180
|
180
|
360
|
|
39
|
60
|
190
|
190
|
380
|
|
40
|
60
|
200
|
200
|
400
|
[5] Enrolment Process:
The Common Services Centres (run by eGovernance Services
India Limited) are authorized to enroll the subscribers. The applicant willing
to join the scheme should have a mobile phone (not necessarily a smart mobile
phone), a Savings Bank account / a Jan-Dhan account number and Aadhaar Card.
The eligible subscriber to visit the nearest Common Services Centres for
getting enrolled under the scheme. Govt is contemplating to provide on line
registration facility in due course.
[6] Mode of payment of contribution:
Initial contribution amount for the first month shall be
paid in cash for which a receipt will be provided. Subsequent monthly
contribution will be paid through auto-debit mode by the bank.
[7] Penalty for default in monthly payment:
In case of default in monthly payment, subscriber can pay
the contribution in subsequent months, along with penalty charges, if any,
decided by the Government.
[8] Payment of Pension:
After the member reaches the age of 60, the fixed monthly
minimum pension of Rs. 3000/- will be paid every month.
[9] Family Pension:
If the subscriber dies during the receipt of the pension, the
spouse of the beneficiary shall be entitled to receive 50% of the pension being
paid to the deceased spouse as a family pension. Family pension is applicable
only to spouse. After the death of the subscriber and the spouse, the entire
corpus of the subscriber’s account will be credited back to the Pension Fund.
[10] Exit and Withdrawal:
Considering the financial vulnerability of the target group
and uncertainty of employment, provision for exiting from the scheme is
provided for as under:
(i) If the subscriber exits
the scheme within a period of less than 10 years from the date of joining the
scheme, the beneficiary’s share of contribution only will be returned to him
with savings bank interest rate.
(ii) If subscriber exits after a period of 10 years or more from the
date of joining the scheme but before superannuation age i.e. 60 years of age,
the beneficiary’s share of contribution along with the accumulated interest as
actually earned by the Pension Fund or at the savings bank interest rate
whichever is higher.
(iii) If a beneficiary has given regular contributions and passes
away 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 the Pension Fund or at the savings bank interest rate whichever is
higher.
(iv) If a beneficiary has given regular contributions and becomes
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.
(v) After the death of subscriber as well as his/her spouse, the
entire corpus will be credited back to the fund.
[11] Management of Pension Fund:
Life Insurance Corporation of India will manage the fund as
a Pension Fund Manager.
[12] Nodal Agency:
Ministry of Labour Welfare is the Nodal Agency for
implementation of the Scheme.
FAQs:
Q1. Whether the subscriber has to give a proof of date of birth and income?
Ans. No separate proof
of age or the income has to be given. Self Certification and providing of the
Aadhaar number will be the basis for enrollment. However in case of any false
declaration, may attract appropriate penalty.
Q2. What about
security of the Fund?
Ans. The fund is
secure. The overall responsibility of managing and supervising the fund will be
with National Social Security Board which is functional under the Chairmanship
of Honourable Union Minister of Labour and Employment.
Q3. What is the responsibility of Govt. of India?
Ans. - The scheme will be
administered by Ministry of Labour and Employment. Ministry of Labour and
Employment will set up a dedicated Call Centre and Project Management Unit
(PMU). Joint Secretary & Director General (Labour Welfare) will be the
Nodal Officer of PMU to administer the scheme effectively.
The PMU will also be
responsible for performance audit, adequacy and fund management. The entire
scheme will be supervised by National Social Security Board (NSSB).
Q4. Will there be any administrative cost?
Ans. - There will be no
administrative cost to the subscriber as it is a purely Social Security Scheme
of Government of India.
Q5. Whether
nomination facility is available?
Ans. - Yes, under the scheme,
nomination facility is available. Beneficiary can nominate any one as nominee
under the scheme.
Q6. Will a
subscriber get a statement of the contribution deposited?
Ans. - Yes, the subscriber will
get SMS on the mobile as a mini statement on each transaction.
Q7. Can the Subscriber make voluntary contribution
over and above the amount prescribed under the Scheme?
Ans. - No. the subscriber has to make only
the fixed amount of contribution, as prescribed at the time of joining the
Scheme.
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