Swavalamban Scheme

Swavalamban Scheme

Swavalamban Scheme aim :

To encourage the people from the unorganised sector to voluntarily save for their retirement and to lower the cost of operations of the New Pension Scheme (NPS) for such subscribers, the Government will contribute Rs. 1000 per year to each NPS account opened in the year 2010-11.

It will be applicable to all citizens in the unorganised sector who join the New Pension System (NPS) administered by the Interim Pension Fund Regulatory and Development Authority (PFRDA).

Benefits under the Swavalamban Scheme :

Under the scheme, Government will contribute Rs. 1000 per year to each NPS account opened in the year 2010-11 and for the next three years, that is, 2011-12, 2012-13 and 2013-14. The benefit will be available only to persons who join the NPS with a minimum contribution of Rs. 1,000 and maximum contribution of Rs. 12,000 per annum.

Definitions under Swavalamban Scheme:

Unorganised sector: For the purpose of this scheme, a person will be deemed to belong to the unorganised sector if that person:

1) is not in regular employment of the Central or a state government, or an autonomous body/ public sector undertaking of the Central or state government having employer assisted retirement benefit scheme, or

2) is not covered by a social security scheme under any of the following laws:

  • Employees’ Provident Fund and miscellaneous Provisions Act, 1952
  • The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948
  • The Seamen’s Provident Fund Act, 1966
  • The Assam Tea Plantations Provident Fund and Pension Fund Scheme Act, 1955
  • The Jammu and Kashmir Employees’ Provident Fund Act, 1961

All other definitions as given in the NPS offer document will apply to the terms used in this scheme.[divider] 

Eligibility Criteria for Swavalamban Scheme:

There are two important criteria:

  • The citizen must belong to the unorganized Sector.
  • persons whose contribution to NPS is minimum Rs.1,000 and maximum Rs. 12,000 per annum, for both Tier I and II taken together, provided that the person makes a minimum contribution of Rs. 1000 per annum to his Tier I NPS account.

Swavalamban Scheme Funding :

The scheme will be funded by grants from Government of India. The grants would be given such that monthly payment in the subscriber account would be possible.[divider]

Source : https://www.npscra.nsdl.co.in

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Nitin Kawale has written 598 articles

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