Pradhan Mantri Laghu Vyapari Maan-dhan Yojana 2019 : Govt Pension Scheme for Small Traders | Features & Details

India has a rich tradition of trade and commerce. Our traders continue to make a strong contribution to India’s economic growth.

In a decision that will benefit the trading community, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi has recently approved a new scheme called ‘Pradhan Mantri Laghu Vyapari Maan-dhan Yojana‘ that offers pension coverage to the trading community.

The Govt has released a notification on 22nd July, 2019 announcing the launch of this new Pension scheme for small retail traders in India.

The main feature of PMLVM Yojana 2019 is that each subscriber of the scheme shall receive minimum assured lifelong pension of Rs 3000/- per month after attaining the age of 60 years.

Atal Pension Yojana (APY) and Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM) are the other popular pension schemes that were launched in the last few years.

Any citizen of India can subscribe to APY Scheme and any unorganized sector worker whose income is less than Rs 15,000 pm can subscribe to PMSYM.

Eligibility conditions for Pradhan Mantri Laghu Vyapari Maan-dhan Yojana (PMLVM)

Below are the eligibility conditions that are applicable for the subscription to Pradhan Mantri Laghu Vyapari Maan Dhan Pension Scheme;

• Who can enroll for PMLVM Scheme? – The provisions of this Scheme shall apply to the Laghu Vyaparis, who are self-employed and working as shop owners, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, brokers of real estate, owners of small hotels, restaurants and other Laghu Vyaparis.
  • The operations of such small traders are generally characterized by family owned establishments, small scale of operations, labour intensive, inadequate financial aid, seasonal in nature and extensive unpaid family labour.
• The entry age for PMLVMY is between 18 to 40 years.
• This Scheme shall be open only to the Laghu Vyapari for joining, whose annual turnover does not exceed Rs 1.5 crore, based on self-declaration, who has a savings bank account in his name and Aadhar number.
• The subscriber should not be covered under New Pension Scheme (NPS) contributed by the Central Government, Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO).
• The subscriber should not be an income tax payer.

Salient Features of PMLVM Yojana Pension Scheme

• What is the Minimum Assured Pension? : Each subscriber under the PM-LVMY, shall receive minimum assured pension of Rs 3000/- per month after attaining the age of 60 years through LIC.
• Contribution Amount : The amount of contribution (deposit amount) is age specific. PMLVMY 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.
  • For example, if a person enters the scheme at an age of 40 years, he is required to contribute Rs 200/ – per month till the age of 60 years. An equal amount of Rs 200/- will be contributed by the Central Government.
• If an eligible subscriber makes a default in the payment of any contribution to be payable by him under this Scheme, he will be allowed to regularise his contribution by paying his entire outstanding dues, along with interest of the rate as determined by the Government of India.
• During the receipt of pension, if an eligible subscriber dies, his spouse shall be only entitled to receive fifty per cent. of the pension received by such eligible subscriber, as family pension and such family pension shall be applicable only to the spouse.

Pradhan Mantri Laghu Vyapari Maan dhan Yojana -Premium Amount Chart

PMLVM Pension Scheme – Exit and Withdrawal Rules

The exit provisions and benefits there under, of this Scheme are as
below;

• 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 is returned along with accumulated interest as actually earned by the pension 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 fund or at the savings bank interest rate whichever is higher.
• After death of subscriber and his or her spouse, the corpus shall be credited back to the fund.
• If an eligible subscriber has given regular contributions and become permanently disabled due to any cause before attaining his age of sixty years, and is unable to continue to contribute under this Scheme, his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit the Scheme by receiving the share of contribution deposited by such subscriber, along with accumulated interest as actually earned by fund or at the savings bank interest rate whichever is higher.

How to Enroll for Pradhan Mantri Laghu Vyapari Maan Dhan Pension Scheme?

The subscriber will be required to have a mobile phone, savings bank account and Aadhaar number. The eligible subscriber may visit the nearest CSCs and get enrolled for PM-LVM using Aadhaar number and savings bank account/ Jan-Dhan account number on self-certification basis.

Enrollment agencies : The enrollment will be carried out by all the Community Service Centers (CSCs).  The small retail traders 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.

My Opinion

The pension amount under PMLVM scheme is a guaranteed one. This may sound attractive, but from returns point of view and considering the rate of inflation in India, the monthly pension amount of Rs 3,000 after many years from now, may not be really sufficient during the Pensioner’s retirement age.

However, in India, as of now, we do not have any Social Security System. So, this scheme can benefit, especially the low income group and individuals who are retail traders and shop keepers.

Continue reading :

• How to empower your Domestic help (Domestic Workers) Financially?
• Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM) – Govt Pension Scheme for Unorganized sector Workers – Details & Features
• List of all Popular Investment Options in India – Features & Snapshot
• Lump sum Investment options for Retirees/Senior Citizens | Where to invest my Retiral benefits to get Regular Income?

(Source & References : PIB & Govt Gazette) (Post first published on : 23-July-2019)