Swavalamban Scheme (A Pension Solution for the

un-organised Sector)

Introduced by Govt. of India and Regulated by PFRDA

What is the Scheme? It is a voluntary Scheme. It is Simple It is portable-Account can be operated from anywhere in

the country.

It is safe- Regulated by PFRDA It is affordable- Investment can be as low as Rs.100 p.m. Permanent Retirement Account No. (PRAN) would be

available to all subscribers. It will be non-withdrawal account

OBJECTIVES

TO PROVIDEOLD AGE PENSION

FOR THEUNORGANISED SECTOR WORKERS

FROM AGE 60 TILL DEATH.

ELIGIBILITY

A Citizen in un-organised sector Age: 18 – 55 yearsNot a member of Employee Provident Fund and Miscellaneous Priovisions Act, 1952 and / orAny scheme for pension after retirement from work.

How much one can contribute?

Minimum Amount per Contribution : Rs. 100

Minimum amount of contribution per year: Rs.1000

Maximum amount of contribution per year: Rs.12000

No. of maximum contribution in a year: 12

Contribution from GovernmentGovernment will contribute RS. 1000 each year to

each account for accounts opened in 2012-13 To become eligible for the contribution, the

account shall have a minimum contribution of Rs.1000 and a Maximum of Rs.12000 per annum.

Govt.contribution has been extended up to 2016-17

IDENTITY OF MEMBER

EACH SUBSCRIBER WILL GET AN IDENTITY CARD WITH HIS PHOTOGRAPH, NAME AND SIGNATURE KNOWN AS PRAN CARD (PERMANENT RETIREMENT ACCOUNT NUMBER).

THIS CARD ESTABLISHES HIS MEMBERSHIP UNDER SWAVALAMBAN SCHEME.

PENSION BENEFITS1. (a) At the age of 60, the subscriber can withdraw 60% as lumpsum, and 40% will

have to be annuitized to ensure a pension of Rs.1000 per month. (b) In case 40% of the corpus is not sufficient to buy an annuity, the entire corpus can be utilized for ensuring payment of pension to the subscriber.

2. Premature exit from NPS before attaining the age of 60 is possible subject to the condition that 80% of the Corpus will be annuitized to yield an annuity of Rs.1000 P.M. If the corpus is not sufficient to purchase minimum annuity , 100% of the Corpus will be annuitized to provide for an annuity.

3. In case of death of the subscriber, the entire money can be withdrawn by his heirs immediately, without annuitizing any portion of the corpus. The heirs of the subscriber also have the option to continue with the NPS account.

Pension Benefits

DEPENDS ON AMOUNT OF CORPUS AT AGE 60 & ANNUITY RATE AT THAT TIME

If the amount of corpus is less than the amount required topurchase minimum pension i.e Rs.1000/ per month then the corpus will be refunded to subscriber.

Statement of transactions

A statement of account of the entire

transaction and the fund value of the corpus as on 31st March every year, will be sent to the subscribers.

Cost of the Scheme

At the time of joining, the subscriber

will pay a one time cost of Rs.35 for obtaining a PRAN Card.

Every year Rs. 70 per annum will be

deducted from the CORPUS OF THE NPS account for meeting the cost of record keeping

How to implement

1. Signing of MOU between LIC & Nodal Agency.2. Members (Construction Workers) for

enrolling under Swavalamban will be identified by the Board.

3. Facilitator/NGOs will be identified by the Board Distt.wise & details thereof will be given to LIC.

How to implement

4. LIC will impart training to facilitator for filling the subscriber forms by the member (Construction Workers).

5. Centre for impart training to facilitator will mutually be decided by LIC & Board.

6. LIC will arrange Camps preferably in their offices

How to implement

7. In the camps:A. Facilitator will collect the members along –with 2

colored passport photographs & also Identity Card issued to them by the Board.

B. LIC Officials will guide the members about salient features/benefits of the Scheme.

C. Facilitator will get the forms filled /completed by the members in presence of LIC Official/s & submit the completed forms to LIC representatives.

How to implement

8. After completing all requirements, LIC will send the forms to NSDL.

9. LIC will call contribution of Rs.1000/- +35/-(Pran Card charges) according to no. of members enrolled.

10.Board will release the amount to LIC as per point No. 9.

How to implement

11. On receipt of Pran Cards from NSDL, Pran Cards will be distributed to members in the Camps initially & thereafter through facilitators .

12. LIC will pay remuneration/incentive of Rs. 70/- per member to the Board for actual no. of members for which Pran Card issued & minimum contribution of Rs. 1000/- per member received.

Swavalamban in other StatesState Group Department Status

Chhattisgarh Mitanins(Asha Workers)

State Health resource centre

Finalized

Chhattisgarh Construction Labours

Chhatisgarh building & other construction

labours welfare board

Approved

Bihar Fishermen Deptt. of Fisheries Approved

Gujarat Salt Pan Workers

Govt. of Gujarat Negotiation going on

Bihar Jeevika Govt. of Bihar Discussion in final stage

Sample of PRAN Card