'DONATE-A-PENSION' SCHEME

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Context:

The Union Labour and Employment Ministry launched the “Donate a Pension” scheme.

Details:

About: It is an initiative under the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) pension scheme.
Feature: Under this scheme, citizens can donate the premium contribution of their immediate support staff including domestic workers, drivers and helpers. So it allows any citizen to pay the premium amount on behalf of an unorganised worker.

Provisions under the scheme:

Workers in the unorganized sector with the age group of 18 to 40 years can register themselves and deposit a minimum of 660 to 2400 rupees every year depending on their age.
After they attain 60 years they will receive the minimum assured pension of three thousand rupees per month.

Eligibility under the scheme:

The unorganised workers mostly engaged as home based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, rickshaw pullers, landless labourers, own account workers, agricultural workers, construction workers, beedi workers, handloom workers, leather workers, audio- visual workers and similar other occupations whose monthly income is Rs 15,000/ per month or less and belong to the entry age group of 18-40 years.
They should not be covered under New Pension Scheme (NPS), Employees’ State Insurance Corporation (ESIC) scheme or Employees’ Provident Fund Organisation (EPFO).
Further, he/she should not be an income tax payer.”

Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM):

PM-SYM is a 50:50 voluntary and contributory pension scheme.
In this the beneficiary makes a stipulated age-specific contribution and the Central Government matches it.
For example, if a person joins the system at the age of 29, he must give Rs 100 per month until he reaches the age of 60, at which point the Central Government would contribute an equal amount of Rs 100.
The subscriber will get the assured monthly pension of Rs.3000/- with benefit of family pension, as the case may be.

Implementation:

The Ministry of Labour and Employment will oversee PM-SYM, which will be implemented by Life Insurance Corporation of India and CSC eGovernance Services India Limited (CSC SPV).
The Pension Fund Manager will be LIC, and they will be in charge of paying out the pensions.
The money collected under the PM-SYM pension system would be invested according to the Government of India's investment pattern.