Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM) – Govt Pension Scheme – Details & Features

Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM) is the new Pension scheme which was announced in the Union Govt’s Interim Budget 2019-20. PMSYM is aimed at Un-organized workers.

The Govt has launched this latest Guaranteed Pension Scheme with effective from 15th Feb, 2019. It has been estimated that around 10 crore un-organized workers can be benefited from this pension scheme.

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

Atal Pension Yojana which was launched in 2015 is also a similar Pension scheme. But, any Indian citizen can invest in APY. However, certain eligibility conditions, as below, have been laid out to subscribe to Pradhan Mantri Shram Yogi Maan-Dhan Pension Scheme.

Eligibility conditions for Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM)

• The unorganized workers who are mostly engaged as home based workers, street vendors, mid-day meal workers, rag pickers, domestic workers, rickshaw pullers, agricultural workers, construction workers, beedi workers, hand-loom workers etc., only can subscribe to this scheme.
• The Subscriber’s income should not be more than Rs 15,000 p.m.
• The entry age for PMSYM is between 18 to 40 years.
• The subscriber should not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO).
• He/she should not be an income tax payer.
• An individual desirous of availing the benefits under the Scheme shall be required to furnish proof of possession of Aadhaar number or undergo Aadhaar authentication. He/she should also have a Savings Bank Account.

Salient Features of Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM) Pension Scheme

• Minimum Assured Pension: Each subscriber under the PM-SYM, shall receive minimum assured pension of Rs 3000/- per month after attaining the age of 60 years.
• Contribution Amount : The amount of contribution (deposit amount) is age specific.
  • 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.
• Family Pension : 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. 

PMSYM – Premium Amount Chart

How to Enroll for Pradhan Mantri Shram Yogi Maan-Dhan (PMSYM) 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-SYM using Aadhaar number and savings bank account/ Jan-Dhan account number on self-certification basis.

Enrollment agencies : 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.

Facilitation Centres: All the branch offices of LIC, the offices of ESIC/EPFO and all Labour offices of Central and State Governments facilitate the unorganised workers about the Scheme, its benefits and the procedure to be followed, at their respective centers. 

PMSYM – Exit and Withdrawal Rules

Considering the hardships and erratic nature of employability of these workers, the exit provisions of 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 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.
• 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 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 advice of NSSB.

My Opinion

The pension amount under PMSYM 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 working in the unorganized sectors.

If you have sufficient financial resources, it’s not that difficult to create a financial plan. You can plan well and lead a good life.

But, it is very tough for low income households like your domestic helpers, car-driver or unorganized workers, with limited financial resources, to plan well and lead a good life.

If it is possible, kindly do assist/encourage them to subscribe to these kind of Govt Schemes. If required, you may also suggest below Insurance schemes to them.

Continue reading :

• How to empower your Domestic help (Domestic Workers) Financially?
• Pradhan Mantri Laghu Vyapari Maan-dhan Yojana 2019 : Govt Pension Scheme for Small Traders | Features & Details

(Source & References : PIB & LIC) (Post first published on : 19-February-2019)