Context

• Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) has been rolled out by the Ministry of Labour and Employment.
• The scheme was announced in the Interim Budget. As many as 42 crore workers are estimated to be engaged in the unorganized sector of the country.

About

Who are eligible to this scheme?

• The unorganised workers mostly engaged as home based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers etc whose monthly income is Rs 15,000/ per month or less and belong to the entry age group of 18-40 years are eligible for the scheme.
• They should not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO).
• Further, he/she should not be an income tax payer.

What are the benefits that a subscriber will receive?

• Each subscriber under the PM-SYM, shall receive minimum assured pension of Rs 3000/- per month after attaining the age of 60 years.
• During the receipt of pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension. Family pension is applicable only to spouse.
• If a beneficiary has given 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.

How much a subscriber has to contribute?

• The subscriber’s contributions to PM-SYM shall be made through ‘auto-debit’ facility from his/ her savings bank account/ Jan- Dhan account.
• The subscriber is required to contribute the prescribed contribution amount from the age of joining PM-SYM till the age of 60 years.
• 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 will the beneficiaries get registered?

• The enrolment will be carried out by all the Community Service Centers (CSCs).
• The unorganised 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.

Who will manage the 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 pay out.
• The amount collected under PM-SYM pension scheme shall be invested as per the investment pattern specified by Government of India.

What are the ways of early exits before the maturity?

• 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 fund or at the savings bank interest rate whichever is higher.
• After the death of subscriber as well as his/her spouse, the entire corpus will be credited back to the fund.