The National Pension Scheme for Traders and Self Employed Persons Yojana (Pradhan Mantri Laghu Vyapari Maan-dhan Yojana) is a pension scheme for shopkeeper’s/ retail traders and self-employed persons for providing monthly minimum assured pension of Rs 3000/- for the entry age group of 18-40 years. It is a voluntary and contribution based central sector scheme.
The scheme is in effect from 22nd day of July, 2019. The scheme would benefit more than 3 crore small shopkeepers and traders.
The scheme is open to Laghu Vyaparis, who are self-employed and working as shop owners, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, brokers of real estate, owners of small hotels, restaurants and other Laghu Vyaparis. The operations of such small traders are generally characterized by family owned establishments, small scale of operations, labour intensive, inadequate financial aid, seasonal in nature and extensive unpaid family labour.
Age group of 18-40 years
Laghu Vyapari whose annual turnover does not exceed Rs 1.5 crore, based on self-declaration. GSTIN is required only for those with turnover above Rs. 40 lakhs.
Who has a savings bank account in his/her name and Aadhar number.
The following are not eligible to join the Scheme
If covered under National Pension Scheme contributed by the Central Government or Employees’ State Insurance Corporation Scheme under the Employees’ State Insurance Act, 1948 (34 of 1948) or Employees’ Provident Fund Scheme under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (19 of 1952) or
Is an income-tax assessee.
Benefits of the scheme
Each eligible subscriber under this Scheme shall receive assured minimum monthly pension of Rs 3000 after attaining the age of sixty years.
The Government of India will make matching contribution in the subscribers’ account. For example if a person with age of 29 years contributes Rs. 100/- month, then the Central Government also contributes the equal amount as subsidy into subscriber’s pension account every month.
Benefits on disablement.- If an eligible subscriber has given regular contributions and become permanently disabled due to any cause before attaining his age of 60 years, and is unable to continue to contribute under this Scheme, his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit the Scheme by receiving the share of contribution deposited by such subscriber, with interest as actually earned thereon by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher.
Benefits to the family on death of an eligible subscriber.- During the receipt of pension, if an eligible subscriber dies, his spouse shall be only entitled to receive fifty per cent. of the pension received by such eligible subscriber, as family pension and such family pension shall be applicable only to the spouse.
Benefits on leaving the Pension Scheme
In case an eligible subscriber exits this Scheme within a period of less than ten years from the date of joining the Scheme by him, then the share of contribution by him only will be returned to him with savings bank rate of interest payable thereon
If an eligible subscriber 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;
If an eligible subscriber has given regular contributions and died due to any cause, 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 subscriber along with accumulated interest, as actually earned thereon by the Pension Fund or at the savings bank interest rate thereon, whichever is higher;
After death of subscriber and his or her spouse, the corpus shall be credited back to the fund;