Pension Scheme Current Affairs - 2019

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All about PM Kisan Maan Dhan Yojana

Union Ministry of Agriculture & Farmers Welfare has rolled out registration for the PM Kisan Maan Dhan Yojana to provide old age pension cover to farmers. It is new Central Sector Scheme envisioned with an aim to improve life of small and marginal farmers of the country. It is first of its kind pension coverage scheme since independence that s has been envisioned for farmers.

Key Features of Scheme

Intended Beneficiaries: It is voluntary and contributory for small and marginal farmer in entry age group of 18 to 40 years and whose cultivable land is 2 hectares or less.

Benefits: Beneficiaries on attaining the age of 60 years will get monthly fixed pension of Rs. 3000.

Contributions: Beneficiary farmers are required to make monthly contribution of Rs.55 to Rs.200, depending on their age of entry, in Pension Fund till they reach the retirement date i.e. the age of 60 years. Central Government will also equal contribute as contributed by the eligible farmer to Pension Fund. Farmers can opt to allow his/her monthly contribution to this scheme to be made from his benefits drawn from PM-KISAN Scheme directly. Spouse of farmer is also eligible to get separate pension of Rs.3000 upon making separate contributions to this pension fund.

Implementing agency: Life Insurance Corporation of India (LIC) will be Pension Fund Manager and also responsible for Pension pay out to farmers.

Transferability: In case of death of beneficiary farmer before retirement date, the spouse may continue in scheme by paying remaining contributions till remaining age of the deceased farmer. If spouse does not wish to continue, then total contribution made by farmer along with interest will be paid to spouse. If there is no spouse, then total contribution along with interest will be paid to nominee. If the farmer dies after retirement date, the spouse will receive 50% of fixed pension as Family Pension. After death of both the farmer and the spouse, accumulated corpus will be credited back to Pension Fund.

Exit: The beneficiary farmers may opt voluntarily to exit from this scheme after minimum period of 5 years of regular contributions. On exit, their entire contribution will be returned by LIC with interest equivalent to prevailing saving bank rates.

Pradhan Mantri Shram Yogi Maan-Dhan (PM- SYM)

The Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) announced in the interim budget 2019 has been notified by the Ministry of Labour and Employment.

Features of the PM-SYM

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. The salient features of the PM-SYM are:

  • Each subscriber under the PM-SYM, shall receive minimum assured pension of Rs 3000/- per month after attaining the age of 60 years.
  • If the subscriber dies during the period of receipt of the pension, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as a family pension.
  • If the beneficiary had died due to any cause (before age of 60 years), his/her spouse will be entitled to join and continue the scheme subsequently by payment of regular contribution or exit the scheme as per provisions of exit and withdrawal.
  • The subscriber must not be a taxpayer.

The scheme is expected to benefit as many as 42 crore workers are estimated to be engaged in the unorganized sector of the country  whose monthly income is Rs 15,000/ per month or less and belong to the entry age group of 18-40 years who are not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO).