Pension is old age security. Presently organized sector had a pension system in place, but recently there are many schemes were launched to address the unorganized sector of the society.
What are the various schemes for the pension of various sectors of society?
- National pension system
- Employees Pension Scheme (EPS)
- Atal pension system
- Pradhan Mantri Kisan Maan Dhan Yojana
- National Social Assistance Programme (NSAP)
- Pradhan Mantri Vaya Vandana Yojana (PMVVY)
- Donate a Pension’ Scheme
- Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana
- Pradhan Mantri Laghu Vyapari Maan Dhaan Yojana
Now let’s see the important facts about the schemes
National Pension scheme:
- It was launched in 2004 for government employees. However, in 2009, it was opened to all sections.
- It is a government-sponsored pension scheme
- The Pension Fund Regulatory and Development Authority(PFRDA) implements and regulates this scheme
- NPS can be subscribed to by any Indian citizen (resident/non-resident/overseas) aged between 18-70 years on a voluntary basis.
- The National Securities Depository Limited (NSDL) is acting as the Central Record keeper for the NPS
- The subscriber will be allotted a unique PRAN which is portable and can be used from any location in India
Employees Pension Scheme (EPS)
- It is a social security scheme that was launched in 1995 by the EPFO (Employee Provident Fund Organization).
- It makes provisions for pensions for the employees in the organized sector after retirement at the age of 58 years.
- The benefits of the scheme can be availed only if the employee has provided a service for at least 10 years
- A minimum pension of Rs. 1000/- per month to the member/disabled/widow/widower/ parent/nominee pensioners and Rs. 250/- per month for children pensioners and Rs. 750/- per month to orphan pensioners.
- Contribution to EPS: An employee contributes 12% of his/her pay towards the EPF account. A matching contribution is also made by the employer. 8.33% of the employee’s pay is remitted by the employer to EPS. The Central Government also contributes at the rate of 1.16 percent of the pay of the members to the Employees’ Pension Scheme.
Atal pension system
- It was launched in 2015
- To address the longevity risks among the workers in unorganized sector and to encourage the workers in unorganized sector to voluntarily save for their retirement
- Eligibility Criteria
- It is open to all bank account holders aged between 18-40 years.
- The focus will be on unorganized sector workers.
- Should make contributions for a minimum of 20 years.
- Implementing Agency: Pension Fund Regulatory and Development Authority (PFRDA) through National Pension System (NPS) architecture Additional Information.
- Note: The existing subscribers of the Swavalamban Scheme would be automatically migrated to APY unless they opt-out.
Pradhan Mantri Kisan Maan Dhan Yojana
- It was launched in 2019
- The scheme meant for old age protection and social security of Small and Marginal Farmers
- Eligibility Criteria
- Only for Small and Marginal Farmers (SMFs)
- Entry age between 18 to 40 years
- Cultivable land up to 2 hectares as per land records of the concerned State/UT
- It is a Central Sector Scheme.
- A fixed pension of Rs 3000 will be provided to all eligible SMFs.
- It is a voluntary and contribution-based pension scheme.
- Farmers will have to contribute an amount between Rs 55 to Rs 200 per month to the Pension Fund till they reach the retirement date i.e., the age of 60 years
The remaining schemes will be discussed in the next article.
|Current Affairs April 2022|