Prime Minister Narendra Modi has launched a national pension scheme — Prime Minister Shram Yogi Mandhan Pension Yojana (PM-SYM) for the workers of unorganised sector. Announced in the interim budget for 2019-20, the scheme assures a monthly pension of at least ₹3,000 after attaining the age of 60. The aim is to benefit 10 crore informal sector workers in five years.
Anyone working in the informal sector whose monthly income is ₹15,000 or less and belongs to the age group of 18-40 years, is eligible to enroll for the scheme. The subscriber should not be paying an income tax or be covered by any other schemes like the National Pension Scheme, the Employees' State Insurance Corp scheme or the Employees' Provident Fund scheme.
Here are the things you need to know about the scheme
1. Each subscriber under this scheme will receive a minimum assured pension of ₹3,000 per month once they turn 60. If the subscriber dies before the age of 60, his or her spouse will get a chance to continue the scheme.
2. PM-SYM is a voluntary and contributory pension scheme on a 50:50 basis where a prescribed age-specific contribution shall be made by the beneficiary and a matching contribution by the central government.
3. The enrollment has already started. Eligible subscribers can enroll by visiting their nearest common service centres (CSCs). A savings bank account or Jan Dhan account and an Aadhaar card are needed to open this pension account. Enrollment services are provided at 3.13 lakh CSCs across the country.
4. Exit provisions:
a) If a 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.
b) If a subscriber exits after 10 years or more but before turning 60, the beneficiary’s share of contribution along with accumulated interest as actually earned by the fund or at the savings bank interest rate whichever is higher, will be returned.
5. The monthly contribution by a worker joining the scheme at the age of 18, will be ₹55, with matching contributions from the government. The contributions will rise with higher age. The contribution amount for the first month shall be paid in cash for which subscribers will be provided with a receipt. CSCs also issue cards having unique ID numbers to all those who register for the scheme.