It is a new central sector
and pension scheme
for only small and marginal
farmers who own less than 2 hectares
of land. (While PM-KISAN is for all farmers)
Under
this Scheme, a minimum fixed pension of Rs.3, 000/- is provided to the eligible
small and marginal farmers, on attaining the age of 60 years.
It
is a voluntary and contributory pension scheme, with entry age of 18 to 40 years.
The
beneficiary is required to make a monthly contribution of between Rs.55/- to
Rs.200/- to the Pension Fund,
depending on the age of entry into the Scheme.
Central
Government will contribute equally to the beneficiary‘s contribution.
The
pension fund is managed by the Life Insurance Corporation of India (LIC).
Farmers
can also allow contribution to be made directly from the benefits drawn from
the PM-KISAN scheme.
The
beneficiary may exit from the scheme voluntarily or on failure of contribution
or on demise.
The
beneficiaries may opt voluntarily to exit the Scheme after a minimum period of
5 years of regular contributions.
On
exit, only their contribution shall be returned by LIC with an interest
equivalent to
Prevailing
saving bank rates (within 10 years)
Either
accumulated interest actually earned by the Pension Fund or the interest at the
savings bank interest rate, whichever is higher.
The
spouse is also eligible to get a separate pension of Rs.3000/- upon making
separate contributions to the Fund.
On
the death of the subscriber during the period of contribution, the spouse shall
have the option of continuing the Scheme by paying regular contribution.
If
the spouse does not wish to continue, the total contribution made by the farmer
along with interest will be paid to spouse.
If
there is no spouse, then total contribution along with interest will be paid to
the nominee.
If
the farmer during the receipt of pension, the spouse or heir shall be entitled
to receive 50% of the pension as family pension, provided he/she is not already
an SMF beneficiary of the Scheme.
After
the death of both the farmer and the spouse, the accumulated corpus shall be
credited back to the Pension Fund.
Exception – The beneficiary should not be
covered under any other statuary social security schemes and it includes
exceptions under PM-KISAN scheme.
It
aims to cover around 3 crores Small and Marginal Farmers.
The
initial enrollment to the Scheme is being done through the Common Service
Centres in various states.
