If you work in the unorganised sector, this is a great retirement plan for you. The participatory pension plan involves paying Rs 55 every month. The central government will match the amount. Once the investor is 60 years old, they can expect to receive Rs 3,000 every month as pension. The scheme, Pradhan Mantri Shram Yogi Maandhan Yojana, was started in 2019.
Anyone who earns less than Rs 15,000 a month can join this scheme, provided they are aged between 18 ad 40. They should not come under the tax net or part of schemes such as the National Pension Scheme (NPS) or Employees’ State Insurance (ESI).
Participants will be eligible for pension once they turn 60 years. In case the applicant dies by then, the partner can receive the complete pension.
The premium is paid in accordance with the age of the payee. An 18-year-old will pay Rs 55. The premium goes up for older persons. The central government will match the premium paid. The first instalment has to be paid as cash and a receipt will be issued. Members of the scheme will also be provided with a card with a special number. This is the official document of participation in the scheme.
Anyone interested in the scheme can join it from the neighbourhood Sewa centre, provided they fulfil the conditions set out earlier. A list of Sewa Centres is available on the website of the Life Insurance Corporation of India. A savings bank account and Aadhaar are required to open an account.
Members are free to leave the scheme after a few years of investment. If the member leaves within ten years, they can get back whatever they paid, minus the government’s contribution, with bank interest. If the member closes the account after 10 years, but before reaching 60 years of age, they can claim all the amount accrued in their account with interest.