Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) will be rolled out by the Ministry of Labour and Employment.

Minimum Assured Pension:

Each subscriber under the PM-SYM, shall receive minimum assured pension  of Rs 3000/- per month after attaining the age of 60 years.

During the receipt of pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension. Family pension is applicable only to spouse.

The subscriber‟s contributions to PM-SYM shall be made through “auto-debit‟ facility from his/ her savings bank account/ Jan- Dhan account. The subscriber is required to contribute the prescribed contribution amount from the age of joining PM-SYM till the age of 60 years.

If a subscriber has not paid the contribution continuously he/she will be allowed to regularize his contribution by paying entire outstanding dues, along with penalty charges, if any, decided by the Government.

Need of PMSYM :

It is expected that at least 10 crore labourers and workers in the unorganised sector will avail the benefit of the scheme within next five years making it one of the largest pension schemes of the world. This unorganized sector is outside the ambit of insurance.

Both insurance penetration and insurance density in India is very low. Such Yojana of government aims to increase this.

It will provide for life of dignity of senior citizens after their retirement.

It also provides financial capital to financial institution especially when there is low liquidity in the market.

Comparison with Atal Pension Yojana:

APY is similar to PMSYM, both being defined benefit pension plans. n case of PMSYM and APY, there is fixed pension amount. APY and PMSYM returns are assured and fixed but unfortunately it comes with an investment cap and also has a cap on the pension amount.

The main difference between these scheme is with regards to many aspects as follows-

  • Age of Joining
    • APY – 18 to 40 years
    • PMSYM – after 60 years
  • Eligibility
    • APY – Resident Indians
    • PMSYM – Resident Indians
  • Pension Slab
    • APY – Fixed slabs of Rs.1000, 2000, 3000, 4000, 5000.
    • PMSYM – Rs.3000
  • Premature Withdrawal
    • APY – Once you attain age of 60, you have no option but to use the entire amount. You cannot withdraw from this scheme, withdrawal is available only in case of death or terminal disease.
    • PMSYM– Only after the age of 60.
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