Why it is in the news?
- The Interim Budget 2019 announced Pradhan Mantri Shram Yogi Maandhan (PMSYM)
Ministry: Ministry of Labour and Employment.
What is it?
- It is a pension scheme for the unorganised sector workers with monthly income of up to Rs 15,000.
- It promises to provide an assured pension of Rs 3,000 per month from the age of 60 years, in return for making a monthly contribution of a nominal sum during the working age.
- The scheme will cover 10 crore workers in the unorganised sector in the first 5 years, making it one of the largest pension schemes in the world.
- Each subscriber shall receive minimum assured pension of Rs 3000/- per month after attaining the age of 60 years.
- 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 spouses.
- 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.
- Contribution by the Subscriber – The subscriber‘s contributions to PM-SYM shall be made through auto- debit facility from his/ her savings bank account/ Jan- Dhan account.
- The subscriber is required to contribute the prescribed contribution amount from the age of joining PM-SYM till the age of 60 years