Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM)
Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM)
The Ministry of Labour & Employment had recently introduced Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), which is a voluntary and contributory pension scheme that aims at providing pension to the workers belonging to the unorganised sector.
The primary goal of this scheme is to provide social security and old age protection to the unorganised workers (UW) who are predominantly engaged as cobblers, beedi workers, washermen, construction workers, domestic workers, street vendors, mid-day meal workers, agricultural workers, handloom workers, etc.
This scheme is highly beneficial and the need of the day because there are 42 crore people are in the unorganised sector who contribute to half of India’s GDP. Apart from the Ayushman Bharat Yojana which provides health insurance, Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana which provides life & disability coverage, the government has launched this immense pension scheme PM-SYM for the welfare of the unorganized workers to have a secure and restful retirement.
- Minimum Assured Pension: Under the PM-SYM scheme, each subscriber shall receive a minimum assured pension of Rs.3000/- per month once they attain the age of 60 years.
- Family Pension: If the subscriber dies before the receipt of the pension, the spouse of the subscriber shall receive only 50% of the pension entitled to be received by the beneficiary as a family pension. This family pension is applicable only to the spouse of the subscriber.
- Administrative cost: The beneficiary does not have the burden of payment of any administrative cost towards availing the scheme.
- Nomination: Nominee can be appointed by the subscriber of the scheme.
- Loan: It is not available under this scheme.
For viewing the official notification by the government, click here.
The subscriber at the time of application to the scheme,
- Must be:
- An unorganised worker.
- Must not be:
- engaged in the Organized Sector.
- should not hold a membership with EPF/NPS/ESIC.
- an income taxpayer.
- Age: between 18 and 40 years.
- Monthly Income: Rs.15000 or lesser.
- Aadhaar card
- Savings Bank account passbook or account statement
- Jan Dhan account passbook or account statement
- Work identity card, if any.
- Eligible workers who’re interested in subscribing to this scheme may visit the nearest Common Services Centres(CSC). Locations of the CSC can be found in the information page on websites of the Ministry of Labour and Employment, Life Insurance Corporation of India, and the CSC.
- The enroller should have:
- Aadhaar Card.
- Savings account or Jan Dhan bank account details – Bank Passbook or Cheque leaf or a copy of the bank statement.
- Initial contribution amount for enrolment.
- The Village Level Entrepreneur (VLE) at the CSC would record:
- the Aadhaar number,
- the name of the subscriber as printed on the Aadhaar card,
- The date of birth mentioned in the Aadhaar card, and the same will be verified with the UIDAI database.
- Other details that would be captured:
- mobile Number
- spouse details
- nominee details
- No separate proof of income has to be given. Self-certification and Aadhaar are the basis for enrolment.
- According to the age of the subscriber, the system would automatically calculate the monthly contribution payable.
- The first subscription amount may be paid in cash by the subscriber to the VLE who will generate the payment receipt, which is to be handed over to the subscriber.
- The Auto-Debit mandate and the Enrolment Form will be printed, which shall then be signed by the subscriber. Both of them would be scanned by the VLE and uploaded into the system.
- A unique Shram Yogi Pension Account Number shall be generated.
- The Shram Yogi Card will be printed at the CSC.
- At the end of the process, the subscriber would be having Shram Yogi Card and the signed copy of the enrolment form for his record.
- The subscriber would receive SMS updates in English and Hindi languages upon activation of auto debit, the Shram Yogi Pension Account details and other transactions.
By the Subscriber
An unorganized worker joining the scheme at the age of 18 would be contributing as little as Rs55 only per month. The subscriber’s savings bank account or Jan Dhan account shall be debited using the auto-debit facility from the date of joining the PM-SYM scheme till the age of 60 years. The Central Government shall also credit matching contribution in his pension account.
By the Government
The PM-SYM is on a 50:50 basis where the prescribed age-specific contribution would be made by the subscriber and an equally matching contribution shall be made by the Central Government. For instance, if a person subscribes to the scheme at the age of 32 years, he is required to contribute a certain amount, say Rs 120/ – per month till the age of 60 years, then, an equal amount of Rs 120/- shall be contributed by the Central Government.
- All the Branch offices of LIC.
- All the offices of ESIC/EPFO.
- All the Labour offices of the Central and the State Governments.
For the ease of reference, the arrangements to be made as provided below:
- The offices mentioned above shall set up a “Facilitation Desk” to help the unorganised workers, guide them about the characteristic features of the scheme and further direct them to the nearest CSC.
- Each desk should consist of at least one staff.
- A considerably sufficient number of brochures shall be printed in local languages.
- The help desk shall have an onsite suitable sitting and other required facilities for these workers.
Any other measures are to be taken to facilitate the unorganised workers to become aware of the scheme in their respective centres.
PM-SYM scheme is governed by the Ministry of Labour and Employment and implemented by the LIC, India and the CSC eGovernance Services India Limited (CSC SPV). LIC shall be the Pension Fund Manager and is responsible for pension payout. The amount collected under the PM-SYM pension scheme shall be invested according to the investment pattern prescribed by Government of India.
Exit and Withdrawal from the Scheme
The hardships the workers face and the erratic nature of their employability have been taken into consideration in order to maintain the flexibility of exit provisions of the scheme. The provisions are:
- If the subscriber exit the scheme before the period of 10 years, the beneficiary’s share of contribution only shall be returned, with the savings bank interest rate.
- If the subscriber exit the scheme after a period of 10 years, but before the superannuation age, i.e. 60 years, the beneficiary’s share of contribution along with accumulated interest earned by the fund or at the interest rate of the savings bank, whichever is higher shall be returned.
- If a subscriber has regularly contributed and died due to any cause, the spouse of the deceased will be entitled to subsequently continue the scheme by regular contribution. Also, the spouse may choose to exit by receipt of the beneficiary’s contribution along with the accumulated interest as earned by the fund or at the interest rate of the savings bank, whichever is higher.
- If a beneficiary has regularly contributed and subsequently becomes permanently disabled due to any cause before attaining the age of 60 years and is unable to continue the contribution towards the scheme, his/her spouse will be entitled to continue the scheme by regular contribution, or may choose to exit by receipt of the beneficiary’s contribution along with the accumulated interest as earned by the fund or at the savings bank interest rate, whichever is higher.
- After the death of the subscriber as well as the spouse, the whole corpus will be credited back to the fund.
Any other provision for exit or withdrawal, including nomination, as may be decided by the Government on the advice of NSSB.
If the subscriber moves to Organized Sector
If the subscriber moves to work in the organized sector and stays there for a period of 3 years or more, his or her account will continue to be active, but the 50% Government’s contribution shall be stopped. If the beneficiary can pay the entire amount of the contribution, he will be allowed to continue in this Scheme.
Default of Contributions
If a subscriber is unable to pay the contribution regularly, he/she will be allowed to continue the contribution towards the scheme by paying the entire outstanding due, along with the penalty charges that may be decided by the Government.
After joining the scheme, the beneficiary has to contribute until 60 years of age. On attaining 60 years, the subscriber is entitled to get the assured pension of Rs.3000/- monthly, with the benefit of family pension, as the case may be.
To address any grievances or to attend queries related to the scheme, the subscriber may contact the customer care number 1800 267 6888 which is available on a 24×7 basis. They may also access the Web portal/app for registering their complaints.
Post by Arnold Thomas
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