Pradhan Mantri Pension Yojana is a pension scheme in India that provides a pension for the elderly. The government of India launched it in January 2017, and it is expected to be fully implemented by 2020.
The scheme will be financed through a payroll deduction from employees’ salaries. Still, it has been designed so that people who do not want to participate can continue to receive benefits even if they do not participate in the scheme.
What is the purpose of the Pradhan Mantri Pension Yojana scheme? Prime Minister Narendra Modi introduced it during his address at the Vibrant Gujarat Summit held in January 2017. The project aims at covering around one crore of people with a monthly income of up to 5,000 rupees per month (to be increased later).
The scheme has been designed to provide financial security to people who cannot find jobs or afford adequate retirement income for their families due to a lack of employment opportunities or a lower income level. It also aims to improve financial inclusion through direct transfers into bank accounts that can be used as savings and investment funds.
It is also designed to protect older adults from falling prey to unscrupulous agents who may sell their property without due care, thereby depriving them of their property rights. Pradhan Mantri Pension Yojana scheme
The scheme has provided financial security and social protection to those below 60. It is designed to provide a basic amount of money, which can be used for living expenses like food and shelter or saved for future use. The amount will be adequate for a person who lives alone without children or relatives who can financially support them.
What are the benefits of the Pradhan Mantri Pension scheme?
There are several benefits associated with Pradhan Mantri Pension Yojana:
● A person will get a monthly pension of Rs 5000/- per month if they have worked for at least ten years in any employment sector. This benefit will be paid irrespective of whether they have contributed to EPF or NPS.
● If someone cannot work due to illness or injury, they can receive an enhanced monthly pension determined based on their income during the last five years.
● If a person dies before completing ten years of service, their family members will get a lump sum equivalent to 25% of their total salary during the entire period. Who are eligible for the Pradhan Mantri Pension Scheme?
● You must be an Indian citizen.
● This scheme is available for unorganized sector workers ( like drivers, maids, sweepers, gardeners, etc.)
● Minimum age of 18 years and maximum of 40 years age.
● You must only have an active savings account/ Post office savings account in your name.
● You should not be a taxpayer.
● You will not be eligible to apply under this scheme if you get benefits under any of the following social security schemes.
● The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
● Jammu Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961
● Employees’ Provident Fund & Miscellaneous Provision Act, 1952.
● Seamens’ Provident Fund Act, 1966.
● Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
● Any statutory social security scheme.
● Documents required for the scheme
● Aadhar card registered
● Mobile number
● Bank passbook or post office savings account
How can you apply for the Pradhan Mantri Pension Scheme?
● If you are interested in applying under this scheme, you shall visit your bank /post office branch where you made your savings account. If you don’t have your own savings account, it is recommended to visit your nearest bank/post office branch and open your savings account.
● After visiting the branch, you need to fill up the Pradhan Mantri Pension Yojana registration form, or you may ask bank officials to guide you through the registration process of Pradhan Mantri Pension Yojana.
● You need to provide your aadhar card number, a mobile number ( where you will receive notifications regarding future payments and monthly contributions under the scheme), and other essential information as asked.
● You also must provide your nominee name (compulsory) if you married the beneficiary. Your spouse will be the default nominee. As for unmarried beneficiaries, you can provide any of your family members’ names, but after marriage, you must provide your spouse’s details as a nominee.
● Then, you need to submit your form and photocopy the abovementioned documents.
● You will receive an SMS on your mobile number (that you have provided ) when your APY account is registered.
● This Pradhan Mantri Pension Yojana account is unique. You can only have a single account, not more than that.
● Your monthly contribution amount will be calculated according to the age you are applying for and the number of benefits you want to receive.
How can you apply for the Pradhan Mantri Pension Scheme online?
After logging into your net banking, you will find under the social security scheme ( for some banks, it may differ). Some bank (like SBI, HDFC, etc.) allows you to apply under this scheme through the net banking process. You must apply under Pradhan Mantri Pension Yojana, provide the requested information, fill out the nominee name, and your account is ready. You can change monthly/quarterly/yearly contribution amounts through your net banking process. Your contribution will be debited through the auto debit process through your provided savings account.
Withdrawal procedure of Pradhan Mantri Pension Scheme If you have attained the age of 60, 6 months or more, and have been paying the monthly pension, you should contact your bank/post office and submit a written request that they begin issuing you a pension. You will be eligible for a monthly pension after 60 years have passed. If you die before 60 years, no allowance is paid until your spouse dies.
In case of death of the subscriber or terminal illness (as determined by the Pradhan Mantri Pension Yojana authorities), the subscriber shall be permitted to withdraw Government co-contribution in cash or through a cheque. However, no refund will be given to any beneficiary of such withdrawal.
Penalties for Pradhan Mantri Pension scheme
If you fail to close your pension account after the deduction of fees. In that case, if there’s a default for six months or more, the balance in your account becomes zero due to deducting account maintenance charges, fees, and unpaid interest. Your pension account will be closed immediately, and whatever balance is left afterwards will get given to you. However, if this happens again after six months or 12 months, you can still revive your pension successfully.
For every delayed contribution, a penalty will be charged:
● Rs.1/month for contributions up to Rs.100/month
● Rs.2/month for contributions up to Rs.101 to Rs. 500/month
● Rs.5/month for contributions up to Rs.501 to Rs. 1000/month
● Rs.10/month for contributions beyond Rs. 1001/month
Pradhan Mantri Pension Scheme maintenance charges
|Charge Head Service charge Method of collection
|Points of Presence
|1. Initial Rs. 120 to Rs. 150 Paid by Governmentsubscriber depending upon the registration number of subscribers.
|Charge Head Service charge Method of collection
|Central Recordkeeping Agencies Pension Fund Managers
|2. Subsequent Rs. 100 per annum Promotion and Persistence per subscriber development charges for APY on the pattern of Swavalamban 1. Account Rs. 15 per account Cancellation of units. opening charge 2. Account Rs. 40 per account Maintenance annum Charges Investment 0.01.2% per annum Adjusted in Net Asset Management Fee of AUM Value
|Investment 0.0075% for Adjusted in Net Asset Management Fee electronic and 0.05% Value per annum for a physical segment of Aum
Pradhan Mantri Pension Yojana is a good scheme for the youth of India. It is a good scheme for the youth of India because it helps them get their pension and save money for their old age.
The scheme is meant for all the people who have not retired from government or private sector jobs. They will be able to get their pension in the form of insurance, which will be paid by the government every month. It can be considered a good option if you want to
plan your retirement in a better way by choosing the suitable options offered by the scheme.