From UPSC perspective, the following things are important :
Prelims level : Details of the scheme
Mains level : Nothing much
The scheme has been envisioned with an aim to improve the lives of small and marginal farmers of the country.
Features of the scheme
- It is voluntary and contributory for farmers in the entry age group of 18 to 40 years
- Monthly pension of Rs. 3000/- will be provided to them on attaining the age of 60 years
- Farmers will have to make a monthly contribution of Rs.55 to Rs.200, depending on their age of entry till they reach the retirement date i.e. 60 years
- Central Government will also make an equal contribution of the same amount in the pension fund
- Spouse is also eligible to get a separate pension of Rs.3000/- upon making separate contributions to the Fund
- Life Insurance Corporation of India (LIC) shall be the Pension Fund Manager and responsible for Pension payout
- In case of death of the farmer before retirement date, the spouse may continue in the scheme by paying the remaining contributions until the remaining age of the deceased farmer
- If the spouse does not wish to continue, the total contribution made by the farmer along with interest will be paid to the spouse
- If there is no spouse, then total contribution along with interest will be paid to the nominee
- If the farmer dies after the retirement date, the spouse will receive 50% of the pension as Family Pension
- After the death of both the farmer and the spouse, the accumulated corpus shall be credited back to the Pension Fund
- The beneficiaries may opt voluntarily to exit the Scheme after a minimum period of 5 years of regular contributions. On exit, their entire contribution shall be returned by LIC with an interest equivalent to prevailing saving bank rates
- The farmers who are also beneficiaries of PM-Kisan Scheme will have the option to allow their contribution debited from the benefit of that Scheme directly
- In case of default in making regular contributions, the beneficiaries are allowed to regularize the contributions by paying the outstanding dues along with prescribed interest
- The initial enrollment to the Scheme is being done through the Common Service Centres in various states
- The enrollment is free of cost. The Common Service Centres will charge Rs.30/- per enrolment which will be borne by the Government.
- Target of 10 crore beneficiaries for this year.