FM to launch Swavalamban pension scheme tomorrow

Finance Minister Pranab Mukherjee will launch tomorrow the Swavalamban Scheme of Life Insurance Corporation (LIC), which seeks to provide pension scheme to the unorganised sector, at Murshidabad in West Bengal.

The scheme is applicable to all the citizens under the unorganised sector, who join the new pension scheme (NPS) subject to their meeting the eligibility criteria, an official statement said.

Under this scheme, Central Government will contribute Rs 1,000 per year to each NPS account opened in the year 2010 -11 and for the next three years, i.e., 2011-12, 2012-13 and 2013-14, it said.

To be eligible, a person will have to make a minimum contribution of Rs 1,000 and maximum contribution of Rs 12,000 per annum, it said.

Last month, the Cabinet had approved a Rs-1,000 per annum pension assistance to unorganised sector workers to inculcate the habit of savings among this population of over 300 million.

The scheme was announced by the Finance Minister in Budget 2010-11.

The Scheme will be funded by grants from the Government of India.

In recognition of their faith in the NPS, it said, all NPS accounts opened in the year 2009-10 will also be entitled to the benefit of Swavalamban, subject to fulfillment of the eligibility criteria.

A person will have the option to join the NPS as an individual as per the existing scheme or through the CRA Lite approved by Pension Fund Regulatory Development Authority (PFRDA).