MAANDHAN - Pension for Unorganised Labour

Q1 What is National Pension Scheme for Traders and Self Employed Persons Yojana?

National Pension Scheme for Traders and Self Employed Persons Yojana is a voluntary and contributory Government Pension Scheme for Vyaparis, retail traders, shopkeepers and self-employed persons, with annual turn-over not exceeding Rs.1.5 crore. Entry age is 18 to 40 years. The scheme is implemented by Ministry of Labour & Employment, Government of India. The scheme has been notified vide its S.O 2615E, dated 22.02.2019.

Q2 Who can subscribe this Scheme?

Any retail trader, shopkeepers and self-employed person with annual turn-over not exceeding Rs.1.5 crore, in the age group of 18-40 year can subscribe this Scheme. They should not be an income tax payer or a member of National Pension Scheme (NPS - GOVT FUNDED), Employees’ State Insurance Corporation scheme (ESIC) and Employees’ Provident Fund Organization (EPFO) and Pradhan Mantri Shram Yogi Maandhan.

Q3 What is the benefit of this Scheme?

It is a social security/old age protection scheme for Vyaparis. Beneficiary will get a minimum assured monthly pension of Rs. 3000/- after attaining the age of 60 years. During the receipt of the pension, if beneficiary dies, her/his spouse will receive a monthly family pension equivalent to 50 % of the beneficiary pension.

Q4 How many years the beneficiary will contribute?

Once beneficiary joins the scheme at the entry age between 18-40 years, she/he has to continuously contribute till she/he attains the age 60 years.

Q5 How much pension would be received under the Scheme? At what age?

Under the Scheme, a minimum monthly assured pension of Rs. 3000/- will commence after the beneficiary attains the age of 60 years.

Q6 How can one join the scheme?

Under the scheme, the beneficiary may visit the nearest Common Service Centre and get enrolled in the scheme using her/his Aadhar number and savings bank account/Jan-Dhan account number on self-certification basis. Nearest Common Service Centres (CSCs) can be located at locator.csccloud.in/.

Q7 Where do I go for enrollment?

You may visit the nearest Common Service Centre for enrollment. One can locate the nearest CSCs at locator.csccloud.in/. Or You may enroll yourself on the portal

Q8 Whether I have to give proof of my date of birth?

Self-Certification and age as in Aadhaar card will be the basis for enrollment. However, any change of date of birth will not be allowed later.

Q9 What are the exit provisions?

Exit provisions are as under:

1. in case an eligible beneficiary exits this Scheme within a period of less than ten years from the date of joining the Scheme by him, then his share of contribution only will be returned to him with savings bank rate of interest payable thereon.
2. if an eligible beneficiary exits after completion of a period of ten years or more from the date of joining the Scheme by him but before his age of sixty years, then his share of contribution only shall be returned to him along with accumulated interest thereon as actually earned by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher
3. if an eligible beneficiary has given regular contributions and died due to any cause, her/his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit by receiving the share of contribution paid by such beneficiary along with accumulated interest, as actually earned thereon by the Pension Fund or at the savings bank interest rate thereon, whichever is higher
4. in case of exit on account of clauses (i), (ii) and (iii) above, the accumulated share of Government’s contribution shall be credited back to the Pension Fund
5. any other exit provision, including nomination, as may be decided by the Central Government by issuing instructions from time to time.
6. after death of beneficiary and his or her spouse, the corpus shall be credited back to the fund;

Q10 What is the role of Life Insurance Corporation of India (L.I.C)?

The scheme is being implemented through LIC and CSCs. LIC is the pension fund manager and also responsible for pension pay out.

Q11 What is the mode of contribution?

Under the scheme, primary mode of contribution is on monthly basis through auto-debit from bank account. However, first month contribution is to be made in cash at CSC. Beneficiary also has option to pay his/her contribution quarterly, half yearly or yearly.

Q12 How much contribution I have to pay?

The actual amount of the beneficiary’s contribution depends upon beneficiary’s entry age and remains fixed through till the age of 60 years. Contribution table can be seen.

Q13 Whether there is auto-debit facility?

Yes. Monthly subscription shall be automatically debited on a fixed date of every month from her/his linked savings account. Only, first subscription will be paid in cash for which receipt will be provided by concerned CSCs/VLEs.

Q14 Who is the nodal officer in the Ministry of Labour & Employment?

The scheme is being administered by Ministry of Labour and Employment. JS & Director General (Labour Welfare) is the Nodal Officer of the scheme.

Q15 Is there any cost for enrollment?

There is no administrative cost to the beneficiary as it is a Social Security Scheme of the Government of India. The enrollment under the Scheme is free for beneficiaries.

Q16 Whether there is provision for family pension?

Yes, there is a provision for family pension under the scheme. It is applicable only to the spouse of the beneficiary. If the beneficiary dies, after the pension has commenced, the spouse of the beneficiary shall be entitled to receive 50 % of the pension.

Q17 Is there any loss to the beneficiary at any stage?

There is no loss to the beneficiary at any point of time. Even if the beneficiary exits the scheme at any time before 60 years of age, his entire contribution will be refunded with interest, as per the guidelines of the Scheme.

Q18 If the payment of subscription is stopped, can a beneficiary re-join/ revive the scheme again?

If the payment of subscription has been stopped or delayed, the beneficiary can revive the scheme after paying the outstanding subscription with a nominal interest as decided by the Government.

Q19 What happens if the beneficiary exits the scheme before 10 years of regular contributions?

In such an event, the beneficiary will be paid back only his/her portion of total contribution with savings’ bank rate interest. She/he will not be entitled to receive the Government’s share.

Q20 What happens if the beneficiary exits the scheme after 10 years but before the pension commences?

If an eligible beneficiary exits after completion of a period of ten years or more from the date of joining the scheme but before the age of sixty years, then her/his share of contribution only shall be returned to her/him along with accumulated interest thereon as actually earned by the pension fund or the interest at the savings bank interest rate thereon, whichever is higher.