- Salient features of the scheme
- Need for and Significance of the scheme
Government has launched the Pradhan Mantri Kisan Maan DhanYojana (PM-KMY) on 12.9.2019 with a view to provide social security to Small and Marginal Farmers in their old age when they have no means of livelihood and minimal or no savings to take care of their expenses.
- Under this scheme, a minimum fixed pension of Rs.3,000/- is provided to the small and marginal farmers, subject to certain exclusion criteria, on attaining the age of 60 years. It is a voluntary and contributory pension
- The eligible farmer is required to contribute to a Pension Fund between 55 to Rs.200 per month depending on the entry age.
- The Central Government also contributes in equal amount to the Pension Fund.
Salient features of the scheme:
(Note: The list is comprehensive, but important from exam point of view).
- The scheme is voluntary and contributory for farmers in the entry age group of 18 to 40 years.
- A monthly pension of Rs. 3000/– will be provided to them on attaining the age of 60 years.
- The farmers will have to make a monthly contribution of Rs.55 to Rs.200, depending on their age of entry, in the Pension Fund till they reach the retirement date i.e. the age of 60 years.
- The Central Government will also make an equal contribution of the same amount in the pension fund.
- The spouse is also eligible to get a separate pension of Rs.3000/- upon making separate contributions to the Fund.
- The 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 till 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.
Need for and Significance of the scheme:
It is expected that at least 10 crore laborers and workers in the unorganized sector will avail the benefit of the scheme within next five years making it one of the largest pension schemes of the world.
- Small and Marginal Farmer (SMF) – a farmer who owns cultivable land upto 2 hectare as per land records of the concerned State/UT.
- Age of 18- 40 years
Farmers who are not eligible for the scheme
The following categories of farmers have been brought under the exclusion criteria.
- SMFs covered under any other statuary social security schemes such as National Pension Scheme (NPS), Employees’ State Insurance Corporation scheme, Employees’ Fund Organization Scheme, etc.
- Farmers who have opted for Pradhan Mantri Shram Yogi Maan Dhan Yojana (PM-SYM) administered by the Ministry of Labour & Employment
- Farmers who have opted for Pradhan Mantri Laghu Vyapari Maan-dhan Yojana (PM-LVM) administered by the Ministry of Labour & Employment
Further, the following categories of beneficiaries of higher economic status shall not be eligible for benefits under the scheme:
- All Institutional Landholders; and
- Former and present holders of constitutional posts
- Former and present Ministers/ State Ministers and former/present Members of Lok Sabha/ Rajya Sabha/ State Legislative Assemblies/ State Legislative Councils, former and present Mayors of Municipal Corporations, former and present Chairpersons of District Panchayats.
- All serving or retired officers and employees of Central/ State Government Ministries/ Offices/Departments and their field units, Central or State PSEs and Attached offices/ Autonomous Institutions under Government as well as regular employees of the Local Bodies (Excluding Multi Tasking Staff / Class IV/Group D employees)
- All Persons who paid Income Tax in last assessment year.
- Professionals like Doctors, Engineers, Lawyers, Chartered Accountants, and Architects registered with Professional bodies and carrying out profession by undertaking the practice.