RephraseThe Indian government has implemented a pension program called Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) to provide elderly care and financial support to unorganized workers. This initiative aims to ensure that workers in the unorganized sector receive proper retirement benefits.
The majority of unorganized workers are involved in various occupations such as
Income range
These workers earn a monthly income of Rs 15,000 or less.
Age limit
They fall within the age range of 18-40 years. They are not eligible for coverage under the New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC), or Employees’ Provident Fund Organization (EPFO). Additionally, they should not be taxpayers.
PM-SYM Features: The PM-SYM is a voluntary and contributory pension scheme that offers several benefits to subscribers:
(i) Minimum Assured Pension: Upon reaching the age of 60, each PM-SYM subscriber will receive a guaranteed minimum pension of Rs 3000 per month.
(ii) Family Pension: In the event of the subscriber’s death while receiving the pension, the beneficiary’s spouse will be eligible to receive 50% of the pension amount as a family pension. Please note that the family pension applies only to the spouse.
(iii) If a beneficiary has made regular contributions and passes away before reaching the age of 60 due to any cause, their spouse can choose to continue the scheme by making regular contributions or withdraw from the scheme according to the exit and withdrawal provisions.
Subscriber’s Contribution: The subscriber to PM-SYM will make their contributions through an automated debit system from their savings bank account or Jan-Dhan account. From the time of joining PM-SYM until the age of 60, the subscriber is obligated to contribute the specified amount. The following chart displays the monthly contribution amounts based on the age at entry.
Entry Age | Superannuation Age | Member’s Monthly Contribution (Rs) | Central Govt’s Monthly Contribution (Rs) | Total Monthly Contribution (Rs) |
(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 |
The Co-contribution of the Government in the PM-SYM scheme is based on a 50:50 ratio, where both the beneficiary and the Central Government make contributions voluntarily. Depending on their age, the beneficiary must contribute a specified amount, and the Central Government matches this contribution as per the provided chart. For example, if a person joins the scheme at the age of 29, they are required to contribute Rs 100 per month until the age of 60, with an equivalent amount being contributed by the Central Government.
To enroll in the PM-SYM scheme, individuals must possess a mobile phone, a savings bank account, and an Aadhaar number. Eligible participants can conveniently visit the nearest Common Services Centres (CSC Governance Services India Limited – CSC SPV) and complete the enrolment process by providing their Aadhaar number and either their savings bank account or Jan-Dhan account number. Alternatively, individuals can also register themselves through the PM-SYM web portal or by downloading the mobile app and using their Aadhaar number or savings bank account/Jan-Dhan account number for self-certification.
Enrollment agencies: The process of enrollment will be facilitated by Common Services Centres (CSC) for all individuals working in the unorganized sector. To register for the Scheme, unorganized workers can visit the nearest CSC and bring along their Aadhaar Card, Savings Bank account passbook or Jan Dhan account information. They will be required to make the initial monthly contribution in cash and will receive a receipt in return.
Facilitation Centers: All branch offices of LIC, offices of ESIC/EPFO, and labor offices of Central and State Governments will assist unorganized workers regarding the Scheme, its benefits, and the required procedure. They will create designated “Facilitation Desks” to provide guidance on the Scheme’s features and direct workers to the nearest CSC. Each desk will have at least one staff member and will be equipped with backdrops, stands at the main entrance, and an ample supply of brochures in Hindi and regional languages. Unorganized workers should bring their Aadhaar Card, savings bank account/Jandhan account, and mobile phone when visiting these centers. The help desk will provide suitable seating and other necessary facilities for these workers. Additionally, any other measures aimed at facilitating the understanding of the Scheme for unorganized workers will be implemented at these centers.
Fund Management: PM-SYM will be a Central Sector Scheme administered by the Ministry of Labour and Employment and implemented through the Life Insurance Corporation of India and CSC eGovernance Services India Limited (CSC SPV). LIC will be the Pension Fund Manager and responsible for Pension payout. The amount collected under the PM-SYM pension scheme shall be invested as per the investment pattern specified by the Government of India.
Exit and withdrawal considerations are designed to address the challenges and unpredictable employment situations faced by workers. The provisions for exiting the scheme are as follows:
1. If a subscriber exits the scheme within less than 10 years, they will receive their contributed share along with savings bank interest.
2. For subscribers who exit after 10 years but before reaching the superannuation age of 60, they will receive their contributed share along with accumulated interest earned by the fund or at the savings bank interest rate, whichever is higher.
3. In the event of a beneficiary’s death after making regular contributions, their spouse can choose to continue the scheme by making regular contributions or exit the scheme and receive the beneficiary’s contributions along with accumulated interest.
4. If a beneficiary becomes permanently disabled before reaching the superannuation age of 60 and is unable to continue contributing, their spouse can continue the scheme or choose to exit and receive the beneficiary’s contributions with interest.
5. Upon the deaths of both the subscriber and their spouse, the entire corpus will be returned to the fund.
6. Any other exit provisions will be determined by the Government in consultation with the National Saving Schemes Board (NSSB).
Default of Contributions: In the event that a subscriber fails to make consistent payments towards their contributions, they will have the opportunity to rectify the situation by paying all outstanding dues, including any penalty charges imposed by the Government.
Pension Payout: When an individual becomes a member of the scheme between the ages of 18 and 40, they are required to make contributions until they reach the age of 60. Upon reaching 60 years old, the subscriber will receive a guaranteed monthly pension of Rs. 3000, along with the option of a family pension if applicable.
To resolve any complaints or concerns regarding the program, recipients have the option to reach out to the customer support team at the toll-free number 1800 267 6888, which will be accessible 24 hours a day, 7 days a week starting from February 15, 2019. Additionally, the web portal and mobile application will provide a convenient way to register any grievances or issues.
If there is any uncertainty or need for clarification regarding the scheme, the final word on the matter will come from the JS & DGLW.
To locate the nearest CSC, you can visit the locator.csccloud.in
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