Modi Government Pension Scheme for Workers

The Modi Government had recently launched two pension schemes for traders and workers. Under the social security schemes, a married couple gets a yearly pension of Rs 72,000 by investing just Rs 100 a month, from the age of 30 years. Let’s take a look at these popular pension schemes named Pradhan Mantri Shram Yogi Maandhan and National Pension Scheme for Traders and Self-Employed Persons.

What is Pradhan Mantri Shram Yogi Maandhan?

This scheme aims to protect workers in old age and looks after the social security of unorganized workers. Rickshaw pullers, head loaders, domestic and home-based workers, agriculture workers, construction and beedi workers among others, can enroll under Pradhan Mantri Shram Yogi Maandhan or PM-SYM.

Eligibility Criteria for PM-SYM:

The entry age of PM-SYM is 18 to 40 years. You must be a worker in the unorganized sector with a monthly income of Rs 15,000 or below. You must not be an income tax payer or engaged in work in the unorganized sector. (This is membership of EPF/NPS/ESIC). You must have an Aadhaar Card and PMJDY account to be eligible for PM-SYM.

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See Also: pension plans in india

Modi Government Pension Scheme for Workers

How to Enroll Under Pradhan Mantri Shram Yogi Maandhan?

• Visit the Common Service Center (CSC) with your Aadhaar Card and PMJDY account with IFSC.
• The Common Service Center enrolls you (beneficiary) on the system, electronically.
• The monthly subscription would be auto-calculated based on age criteria.
• You pay the 1^st installment in cash at the Common Service Center.
• On payment, you get the Pradhan Mantri Shram Yogi Maandhan number generated.
• The acknowledgment cum debit mandate is generated for your signature.
• The Common Service Center scans and uploads your signed debit mandate.
• The Common Service Center then prints and hands over the Pradhan Mantri Shram Yogi Maandhan card to you (beneficiary).
• The mandate debit then gets activated along with SMS communication.
• The SMS is then sent for all future transactions.

See Also: Financial Plans For Retirement Benefits

What is The NPS-Traders Scheme?

The National Pension Scheme for traders and self-employed or NPS-Traders was launched for the social security of shopkeepers, traders and self-employed people whose annual turnover is up to Rs 1.5 Crores. These are mainly rice mill owners, workshop owners, commission agents, real estate brokers or small hotel and restaurant owners.

Eligibility Criteria for NPS-Traders scheme:

• You must be between 18-40 years of age.
• You must be a shopkeeper or retail trader/self-employed.
• The annual turnover must be Rs 1.5 Crores or below.
• You must have an Aadhaar Card and PMJDY account.
• You must not be a beneficiary of the Pradhan Mantri Shram Yogi Maandhan scheme.
• You must not be paying income tax or engaged in the Organized Sector.

See Also: Types of Retirement Plans

What is NPS-Traders Scheme?

This is a voluntary and contributory pension scheme. You get a minimum assured pension of Rs 3,000 a month after you attain the age of 60 years. If the subscriber dies, the beneficiaries' spouse gets 50% of the pension as a family pension. 

How to Enroll Under NPS-Traders Scheme?

• Retail Traders, Shopkeepers, and self-employed people must go to the nearest Common Services Center and enroll for the NPS-Traders Scheme. This can be done using the Aadhaar Card or PMJDY account on a self-certification basis.
• The first subscription must be made in cash and then auto-debit from the following month. A facility is available where retail traders or shopkeepers can visit the NPS-Traders web portal and then download the mobile app for a self-registration using Aadhaar Number and PMJDY account on self-certification basis.

Contribution by Retail Traders and Shopkeepers to NPS-Traders

Entry Age (Years)	Superannuation Age (Years)	Member's  monthly contribution	Central Govt's  monthly contribution	Total monthly contribution  (Rs)
		(Rs)	(Rs)
18	60	55	55	110
19	60	58	58	116
20	60	61	61	122
21	60	64	64	128
22	60	68	68	136
23	60	72	72	144
24	60	76	76	152
25	60	80	80	160
26	60	85	85	170
27	60	90	90	180
28	60	95	95	190
29	60	100	100	200
30	60	105	105	210
31	60	110	110	220
32	60	120	120	240
33	60	130	130	260
34	60	140	140	280
35	60	150	150	300
36	60	160	160	320
37	60	170	170	340
38	60	180	180	360
39	60	190	190	380
40	60	200	200	400

How to exit NPS-Traders Scheme?

• If you exit the scheme in a time period of fewer than 10 years, only your share is returned with a savings bank interest rate.
• If you exit after 10 years but before 60 years, your share of contribution along with accumulated interest (This is as earned by the fund) or the savings bank interest rate whichever is higher is returned.
• If the beneficiary has made regular contributions and then dies, the spouse has an option to continue the scheme by making regular contributions. If she exits the scheme, she gets accumulated interest earned by the fund or savings bank rate whichever is higher.

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