Benefits of PM-SYM scheme for PF holders

What is PM-SYM?

PM-SYM (Pradhan Mantri Shram Yogi Maan-Dhan) is a voluntary and contributory pension scheme for unorganized workers from 18 to 40 years of age with monthly income less or equal to Rs. 15000 per month.

Who can subscribe to this scheme?

Any unorganized worker, aged 18 to 40 years, whose work is done by house-to-house workers, street vendors, head loaders, brick kilns, cobblers, rag-rappers, domestic workers, washer-men, rickshaw drivers, rural landless Workers, natural Workers, agricultural laborers, construction laborers, beedi laborers, handloom laborers, leather laborers, etc., who have a monthly income less than Rs. 15,000/-.

The employee should not be covered under any Legal social security schemes like the National Pension Scheme (NPS), Employees State Insurance Corporation Scheme, Employees Provident Fund Organization Scheme and should not be an income taxpayer. 

What is the benefit of this scheme?

If any unorganized worker subscribes to the scheme and pays regular contributions till the age of 60 years, the person will get Rs. 3000 / - minimum monthly pension. After his/her death, the spouse will receive a monthly family pension which is 50% of the pension.

For how many years will the beneficiary contribute?

Once the beneficiary joins the scheme at the entry age between 18-40 years, he will have to contribute until he attains the age of 60 years.

Note: The beneficiary is that employee who has PF registration and filing the PF return.

Who is not entitled to join this scheme?

Under this scheme, any workers who are covered under any legal social security scheme like NPS, ESIC, EPFO , and Income Tax Pay are not entitled to join the scheme.

What will be the process of joining this scheme?

Under this scheme, customers can create their nearest PM-SYM on their basis using Aadhaar card number and Savings bank account / Jan-Dhan account number. All the branch offices of LIC, EPFO / ESIC offices will facilitate the customers about the scheme, its benefits and the procedure to be followed for enrollment. They will also advise them to locate the nearest CSC.

Will a person have to provide proof of their date of birth and income?

No separate proof of age or income will have to be provided. Enrollment of self-certification and providing Aadhaar number will be the basis of enrollment. However, in case of any false declaration, the appropriate penalty may attract.

Who will be the fund manager of this scheme?

The PM-SYM scheme has been operated through Life Insurance Corporation of India and CSC e-Governance Services India Limited (CSC SPV). LIC will be the pension fund manager and will be responsible for pension payments. To know more about the role of LIC under this scheme checkout for the further posted article.