Pension Scheme for Traders Current Affairs - 2020

National Pension Scheme for traders: Not successful as expected

The National Pension Scheme for traders, Shopkeepers and Self-Employed persons, also called the Pradhan Mantri Laghu Vyapari Maan-dhan Yojana was launched in July 2019. It aimed at benefitting 3 crore small traders and shopkeepers

Highlights

The Government set a target of 50 lakh enrolment by the end of March 2020. However, only 25,000 persons have applied so far.

Among all states Uttar Pradesh has highest registrations with 6,765 persons. No one has so far registered in the scheme in the states of Mizoram and Lakshadweep.

About the scheme

The scheme is being implemented by Ministry of Labour and Employment. In order to enrol in the scheme, GSTIN is required only for those whose turnover is above Rs 40 lakhs. Also, the participant of the scheme should not be an income tax payer.

Concerns

Under the scheme the subscribers will receive monthly pension of Rs 3000 after the age of 60. The persons in the age of 18-40 years are eligible to apply to the scheme.

The beneficiaries of the scheme believe that the majority of the population start their pension plans between 40 and 55. The scheme excludes the age group between 40 and 55. Also, Rs 3000 being provided as premium after 30 years will hardly have value as money would have inflated by then.

Government approves Monthly Pension Scheme for Traders

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved Rs.3000 monthly pension scheme for small retail traders and shopkeepers after they attain the age of 60 years.

Salient Features of Scheme

  • About: Under the scheme all small shopkeepers, retail traders and self-employed persons are assured a minimum of Rs.3,000 monthly pension after attaining 60 years of 60 years.
  • Beneficiary: The new pension scheme that offers pension coverage to the trading community will cover 3 crore small retail traders and shop keepers.
  • Eligibility: All small shopkeepers, self-employed persons and retail traders aged between 18-40 years and with Goods and Service Tax (GST) turnover below Rs.1.5 crore can enrol for pension scheme.
  • Enrollment: The scheme is based on self-declaration as no documents are required except bank account and Aadhaar Card. Also, the interested persons can enrol themselves via more than 3,25,000 Common Service Centres  (CSC) spread across India.
  • Government Contribution: The Central Government will make matching contribution (same amount as subscriber contribution) i.e. equal amount as subsidy into subscriber’s pension account every month.
  • Significance: Since ages India has a rich tradition of trade and commerce and our traders make a strong contribution to India’s economic growth. Therefore, cabinet decision will benefit the trading community. This pension scheme is a part of Prime Minister’s vision to provide a robust architecture of universal social security.