Context: Prime Minister Narendra Modi recently launched a pension scheme called Pradhan Mantri Shram-Yogi Maandhan Yojana (PM-SYM). The scheme was announced in the Union Budget in February this year.

About Pradhan Mantri Shram Yogi Maan-Dhan Yojana:

PM-SYM is a voluntary and contributory pension scheme that will engage as many as 42 crore workers in the unorganised sector.

Eligibility:

1. The unorganised sector workers, with income of less than Rs 15,000 per month and who belong to the entry age group of 18-40 years, will be eligible for the scheme.
2. Those workers should not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO).
3. He or she should not be an income tax payer.

Benefits:

Minimum Assured Pension: Each subscriber under the scheme will receive minimum assured pension of Rs 3000 per month after attaining the age of 60 years.

In case of death during receipt of pension: If the subscriber dies during the receipt of pension, his or her spouse will be entitled to receive 50 percent of the pension as family pension. This family pension is applicable only to spouse.

In case of death before the age of 60 years: If a beneficiary has given regular contribution and dies before attaining the age of 60 years, his or her spouse will be entitled to continue the scheme subsequently by payment of regular contribution or may even exit the scheme.

Contribution to the scheme:

Contribution by the Subscriber: The subscriber is required to contribute the prescribed contribution amount from the age of joining the scheme till the age of 60 years.

Medium of contribution: The subscriber can contribute to the PM-SYM through ‘auto-debit’ facility from his or her savings bank account or from his or her Jan- Dhan account.

Equal contribution by the Central Government: Under the PM-SYM, the prescribed age-specific contribution by the beneficiary and the matching contribution by the Central Government will be made on a ‘50:50 basis’.