Pradhan Mantri Shram Yogi Maan - Dhan (PMSYM) is a pension scheme launched by the government on 15th February 2019. It is a new pension scheme for the unorganized sector. Some of its features are similar to Atal Pension Yojana (APY). However, it is important to note the important features and the eligibility criteria of this scheme.
Such schemes are very welcomed in India, given that there is no proper pension plan being managed by the government.
Eligibility of PMSYM
- Monthly income should be Rs.15,000 or less than that.
- Age should be between 18 years to 40 years.
- They should not be covered under the schemes like the New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO).
- They should not be Income Tax Payer.
- Their profession is like home-based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washermen, rickshaw pullers, landless laborers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio-visual workers.
Features of PMSYM
1. Minimum Pension– Each subscriber under the PM-SYM, shall receive the minimum assured pension of Rs.3000/- per month after attaining the age of 60 years.
2. Family Pension– During the receipt of the pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as a family pension. Family pension is applicable only to a spouse.
If a beneficiary has given a regular contribution and 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.
3. A default of Contributions-If a subscriber has not paid the contribution continuously he/she will be allowed to regularize his contribution by paying entire outstanding dues, along with penalty charges, if any, decided by the Government.
4. Pension Pay out-Once the beneficiary joins the scheme at the entry age of 18-40 years, the beneficiary has to contribute till 60 years of age. On attaining the age of 60 years, the subscriber will get the assured monthly pension of Rs.3000/- with a benefit of a family pension, as the case may be.
5. Matching contribution by the Central Government – 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 as per the chart. For example, if a person enters the scheme at an age of 29 years, he is required to contribute Rs 100/ – per month till the age of 60 years. An equal amount of Rs 100/- will be contributed by the Central Government.
How to enroll in PMSYM?
The subscriber will be required to have a mobile phone, savings bank account, and Aadhaar number. The eligible subscriber may visit the nearest Community Service Centre (CSC)s and get enrolled for PM-SYM using Aadhaar number and savings bank account/ Jan-Dhan account number on a self-certification basis.
Later, the facility will be provided where the subscriber can also visit the PM-SYM web portal or can download the mobile app and self-register using Aadhar number/ savings bank account/ Jan-Dhan account number on self-certification basis.
The enrolment will be carried out by all the Community Service Centers (CSCs). The unorganized workers may visit their nearest CSCs along with their Aadhar Card and Savings Bank account passbook/Jandhan account and get registered themselves for the Scheme. Contribution amount for the first month shall be paid in cash for which they will be provided with a receipt.
All the branch offices of LIC, the offices of ESIC/EPFO and all Labour offices of Central and State Governments will facilitate the unorganized workers about the Scheme, its benefits and the procedure to be followed, at their respective centers.
How to exit or withdraw from Pradhan Mantri Shram Yogi Maan-Dhan?
Considering the hardships and erratic nature of employability of these workers, the exit provisions of the scheme have been kept flexible. Exit provisions are as under:
- In case 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.
- If subscriber exits after a period of 10 years or more but before superannuation age i.e. 60 years of age, 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.
- If a beneficiary has given regular contributions and died due to any cause, his/ her spouse will be entitled to continue the scheme subsequently by payment of regular contribution or exit by receiving the beneficiary’s contribution along with accumulated interest as actually earned by the fund or at the savings bank interest rate whichever is higher.
- If a beneficiary has given regular contributions and become permanently disabled due to any cause before the superannuation age, i.e. 60 years, and unable to continue to contribute under the scheme, his/ her spouse will be entitled to continue the scheme subsequently by payment of regular contribution or exit the scheme by receiving the beneficiary’s contribution with interest as actually earned by fund or at the savings bank interest rate whichever is higher.
- After the death of the subscriber as well as his/her spouse, the entire corpus will be credited back to the fund.
- Any other exit provision, as may be decided by the Government on the advice of NSSB.
Who will manage the Pradhan Mantri Shram Yogi Maan-Dhan Fund?
PM-SYM will be a Central Sector Scheme administered by the Ministry of Labour and Employment and implemented through Life Insurance Corporation of India and CSCs. LIC will be the Pension Fund Manager and responsible for Pension payout. The amount collected under PM-SYM pension scheme shall be invested as per the investment pattern specified by the Government of India.
Wealth Cafe tip - PMSYM is another pension scheme for the unorganized sector similar to Atal Pension Yojana (APY) and NPS scheme. Instead of investing in 2 different pension schemes, it is advisable to stick to one pension scheme.