Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) is a government-sponsored voluntary and contributory pension scheme for unorganised workers. The pension scheme admits unorganised workers in the age group of 18-40 years with a monthly income up to Rs 15,000, and offers a minimum guaranteed pension of Rs 3,000 a month after the subscriber turns 60, according to pension regulator EPFO's website - epfindia.gov.in. The worker subscribing to PM-SYM should not be covered under any statutory social security scheme such as National Pension Scheme (NPS), Employees' State Insurance Corporation scheme and Employees' Provident Fund Organization Scheme, among other requirements, according to the EPFO or Employees' Provident Fund Organisation.
Here are key features to know about the pension scheme PM-SYM (Pradhan Mantri Shram Yogi Maan-Dhan):
Who can subscribe to PM-SYM?
Unorganised workers including home-based workers, street vendors, brick kiln workers, cobblers, landless labourers, agricultural workers and construction workers not liable to pay income tax can subscribe to the PM-SYM pension scheme, according to the EPFO website.
The applicant should be in the age bracket of 18-40 years and not have a monthly income of more than Rs 15,000, according to the regulator.
Benefits of PM-SYM Yojana
After making regular contributions to the scheme till attaining the age of 60 years, the subscriber gets a minimum monthly pension of Rs 3,000. In the event of death of the subscriber, the spouse receives a monthly pension of an amount equal to 50 per cent of the subscriber's pension.
Number of contribution years
PM-SYM Yojana requires the subscriber to contribute to the account till turning 60, which means contributions for a period ranging from 20 years to 42 years is required under the pension scheme.
How to join pension scheme Pradhan Mantri Shram Yogi Maan-Dhan
Eligible individuals may visit the nearest common service centre to enrol under the PM-SYM, according to the provident fund body's website.
PM-SYM document requirements
The applicant is required to submit the Aadhaar number and bank account number along with the passbook to join the scheme, according to the EPFO. The enrolment is done on a self-certification basis, without submission of proof of age or income, and a false declaration may attract appropriate penalty, EPFO noted on its website. The subscriber is also required to submit the consent form for the auto-debit facility.
The role of insurance major LIC
Life Insurance Corporation (LIC) is the fund manager for the pension scheme, and is the service provider for the payment of pension to the subscriber.
Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM) exit rules
If the subscriber moves to any organised sector and remains there for a minimum period of three years, the account will be active but government's contribution of 50 per cent will be stopped. Subscribers agreeing to pay the entire amount of the contribution are allowed to continue the PM-SYM account.
On attaining the age of 60, a withdrawal of the contribution amount is allowed along with an interest equivalent to prevailing savings bank rates, according to the EPFO website.
If the subscriber exits the scheme after five years and up to 10 years regular contribution, the entire contribution is returned with an interest equivalent to savings bank rates.
If the subscriber exits the scheme after 10 years but before the commencement of pension, the subscriber is paid only his or her contribution with accumulated interest. In such a case, the subscriber is not entitled to receive the government's share in the account, according to the EPFO website.
PM-SYM subscriber contribution
The actual amount of the subscriber's contribution will be determined at the entry age of the scheme. At a median entry age of 29 years, the subscriber is required to contribute Rs 100 per month towards the pension scheme PM-SYM, according to EPFO.
The contribution amount ranges from Rs 55 to Rs 200 per month. The central government provides makes an equal contribution to the account. (Also read: Find out how much contribution a PM-SYM subscriber needs to make to reach the pension goal)
Other facilities offered under the PM-SYM pension scheme
Pension scheme PM-SYM supports an auto-debit mode of contribution, wherein the amount is deducted automatically from the subscriber's account on a monthly, quarterly, half-yearly or yearly basis, whichever applicable. The first contribution is to be paid in cash at common service centre, according to the provident fund body. The pension scheme also offers a nomination facility, according to EPFO.