New Pension Schemes for Unorganised Sector

Key Facts

• Government of India has introduced two voluntary and Contributory Pension Schemes, i.e.(1) Pradhan Mantri Shram Yogi Maan-Dhan Yojna, (PM-SYM), a  pension scheme for the  Unorganised Workers and (2) National Pension Scheme for the  Traders and  Self Employed  Persons (NPS-Traders)  (for the Vyapari’s) under section 3(1) of  Unorganised  Workers Social Security  Act, 2008 to provide old age protection to them.
• The schemes envisage for providing minimum assured monthly pension of Rs. 3000/- after attaining the age of 60 years. If the subscriber dies,  the spouse of the beneficiary shall be entitled to receive  50%  of the pension as a family pension. Family pension is applicable only to a spouse. The monthly contribution ranges from Rs.55-Rs.200/- depending upon the entry age of the beneficiary.
• PM-SYM is meant for old age protection and social security of  Unorganised  Workers (UW) who are mostly engaged as rickshaw pullers, street vendor, mid-day meal workers,  head loaders,  brick kiln workers, cobblers, rag pickers, domestic workers, washermen, home-based, agricultural workers,  construction workers,  beedi workers,  handloom workers,  leather workers, audio-visual workers or in similar other occupations. There is an estimated 42 crore such as unorganized workers in the country. The entry age for the beneficiary is  18-40 years and he/she should not be a member of  ESIC/EPFO or an income taxpayer.
• The NPS-Traders scheme is meant for old age protection and social security of  Vyapaaris (retail traders/ shopkeepers and self-employed persons) whose annual turnover is not exceeding  Rs.1.5 Crore. These retail traders / petty shopkeepers and self-employed persons are mostly 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  Vyapaaris. The entry age for the scheme is  18-40 years and the Vyapaari should not be a  member of  ESIC/EPFO/PM-SYM or an income taxpayer.
• The schemes are being implemented through Life Insurance Corporation (LIC) of India and Common Service Centres. LIC is the Fund Manager and responsible for pension pay-out. Common Service Centre is the enrolment agency responsible for the enrolment of the beneficiaries through its 3.50 lakhs Centres across India. 
• For creating awareness among to public, TV/Radio campaign has been issued. Information Education and Communication (IEC) material like pamphlets, posters, banners has been provided to State /UT Governments in regional languages. Rs. 20.00 Crore has been distributed among State/UT Governments for publicity and public awareness programs. Pension Week was celebrated from 30th Nov. to 06th Dec 2019, public meeting were organized at CSC, district and State HQ levels. State Level Monitoring Committees with Chief Secretary as Chairman and District Level Implementation Committee with DM/Collector / DC as Chairman have been formed in almost all the districts and States.

Source: PIB