Pradhan Mantri Shram Yogi Maandhan Yojana - (PMSYMY)

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 1^st 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.

=0=0=

HOW TO WRITE AN EFFECTIVE BUSINESS / FORMAL LETTER

With advent of emails, mobile telephony and our willing inclination towards practicality and speed, the occasions for writing a formal letter is declining and with that the skill of letter writing is also dwindling. 

This is the very reason why in offices a person with a letter writing skill is considered an asset, particularly in business world. Though sending functional communications is gaining popularity, the overall numbers of Formal Letters written are increasing as written communication between businesses, between Government Departments and businesses/individuals is increasing day by day. Sometimes, variant of such communications are called application, complaint, representation, etc but in essence they are based on the principles of writing Formal Letters. Hence, skill of writing a Formal Letter is very important for an office-worker or an entrepreneur and also for an individual. 

The key aspects of writing an effective Business / Formal Letter:

1. Address of the sender: Generally, it is pre-printed on a letterhead with other contact details, website, if any. Pre-printed letterhead follows the overall “Branding Policy” of the organisation in the matter of font type, colour, style, etc. If the letter is sent in individual capacity, the address, contact number and date is written at the top right hand corner or left corner as per the modern practice in vogue.

2. Letter No. (also called outward number or Reference Number): Each business have their own style of numbering (which include one or more of : initials of the company name, code for center name, department code, Nos of years how old is the Company, File No., Financial Year, Letter Number, etc – may not be in the said order).

3. Date of the letter: Date is positioned with alignment of the line of the Letter No. Putting the date just below the letter No. is also in vogue if the space permits. Format of the date can be 14^th April, 2018 or April 14^th, 2018. DD/MM/YYYY is now also gaining popularity. However, this may create confusion as it may be taken as MM/DD/YYYY in certain countries.

3.1 For the purpose of instruction for mode of dispatch, the words like By Air, By Regd Post, Speed Post, By Courier, etc is also mentioned somewhere near/below  the date leaving some space.

4. Inside Address: Address of the recipient. The recipient may be addressed by official designation (in Govt Deptts / Organisations) or by personal name and Designation (in private sector) followed by full address. When personal name is used, ensure that the name is correctly spelled. The address must be in full  as letters are sent in “Window Cover” or noted down on the envelop by the Dispatch Deptt. When the letter is sent in a large office, it is advisable to mark Attention: XYZ Deptt. You can also mark Kind Attention : Mr/Ms XYZ (it should be noted that some persons may be averse to marking a letter in their personal name by the sender).

5. Salutation: The addressee is addressed with honourific words, appropriately selected depending upon the status/relations of the Recipient and the Sender. 

6. Subject Line (Written as Sub: or Reg: (i.e. Regarding): It states, in one to two lines, the matter of the letter to which the letter relates. It should not be a in the format of a complete sentence.  

7. Reference No. : No. of the Letter or such other communication (and also its date) is stated. If there is exchange of letters, quote latest letter sent by the writer and the latest letter received from the addressee. This is useful for the recipient to link the letter with previous correspondence already available with him/her.

8. Body of the letter: This is the most important part of a business letter. It presents the subject matter in details and the actions requested to be taken by the recipient. Generally, it contains multiple paragraphs depending upon the subject matter. The first paragraph introduces the subject matter and seeks to build relationship with the recipient or linking the present letter with the correspondence, if any, resting with the addressee. This part of the letter calls for high level of linguistic capabilities of the writer. Do not use flowery language. The general tenor of the letter should be polite, even in the letters involving contentious matters: Courtesy begets courtesy. When you have a reason to contradict the addressee, tread cautiously, particularly when the addressee is at higher rung of hierarchy.  Sequencing the developments in the subject matter in a chronological flow, proper use of linking words and sign-post words facilitate the reader to comprehend what the letter is all about. The penultimate (the last but one) paragraph should focus on what actions you expect the addressee to take.

9. Subscription: Depending upon the relation between the recipient and the sender and corresponding to the words used in salutation, appropriate words are used to conclude the letter as under:

·         Yours faithfully…in formal letters  

·         Your sincerely…for friends and relatives 

·         Yours truly…very close relatives 

·         Your obedient…in a letter written by a student to the teacher and similar situation of showing reverence

·         Your affectionate or Your loving… in letter written by father to his son/daughter and similar familial/social situations

10. Signature Part: This part contains the signature of the person/authority who issues the letter. The designation of the signatory is always mentioned and the name of the signatory is also some time written in bracket immediately below the signature and above the designation. Now a days, in private sector, the signatory’s Mobile Number is also mentioned below the designation. Signature Part is important as it legally binds the sender as to what is stated in the letter.

11. Encls (Enclosures): If any other papers are attached with the letter, the same are listed in this part.

12. Sometimes, a copy (Carbon Copy – CC)  of the letter is also sent to one or more recipients in addition to the addressee. The address/es of the recipient/s of the CC is mentioned below the signature portion in all the copies of the letter. To facilitate the proper dispatch of the CC, a tick mark is put before the respective recipient in each CC copy. Suitable remark, as applicable, may also be added (e.g. for information, for doing the needful, for records, etc).

12.1 The recipient name/ address of the BCC (Blind Carbon Copy), if sent,  is not written on the copy of the Addressee  or CC, thereby, the addressee and the recipients of CC will be unaware (blind) to the fact that a copy is sent to the recipient of BCC.

13. In addition to the Addressee Copy and CC copies, one more copy is also printed and retained as Office Copy marked O/C. In certain offices instead of one,  two more copies are printed, one for O/C and another one (marked P/C)  for Master File (also called “Pink Copy File” in olden days) , in which a copy of all the letter sent is filed, seriatim.

14. Considering our concern for “Save Tree” and availability of softcopy, printing O/C and P/C can be avoided by obtaining approval of the signatory by email. One has to judiciously weigh the need for hard copy of O/C and P/C before pressing Ctrl+P.

15. Spell Check and proofread before printing. If required, revise.

16. Format the letter before printing. Use Block Style as now days it is the standard practice.

17. Keep proper margin on both sides (3 to 4 cm on right and 1 to 2 cm on left). Font type: Calibri, Verdana, Arial and alike. Do not use calligraphy / cursive fonts.  Font size : 12 to 14. Use Make Bold, underline and Italics sparingly.

18. DO (Demi Official) letter is a special form of formal letter used in case of extreme secrecy, urgency, personal attention, etc.

Do you find the recipe of writing an effective formal letter ticklish? It is not so if you have basic knowledge of the language and its grammar. Practice makes a man perfect. Now onwards, draft the letters yourself rather than requesting the colleagues to do for you. Seek help only for correcting your draft. Make conscious and continuous efforts to improve your letter writing skills. The sooner, the better. A day will come when your colleagues will seek your help to correct their drafts.

=0=0=

नेशनल पेंशन सिस्टम (NPS) के लाभ (benefits)