Swavalamban

  • The Finance Minister has announced a new scheme Swabalamban Yojana in the Budget 2010. Swabalamban Yojana is a pension scheme introduced by the Government of India to all citizens in the unorganized sector administered by Pension Fund Regulatory and Development Authority. Life Insurance Corporation of India has enrolled as Aggregator and COFFED is facilitator as well as collector with NLCC NO.- NPS0184563 with PFRDA.
    National Pension Scheme (NPS) - Swabalamban
    1. The Scheme:

      • It is voluntary.

      • It is simple.

      • It is uniform - a single investment plan.

      • It is portable - Account can be operated from anywhere in the country.

      • It is safe - It is regulated by PFRDA.

      • It is affordable - Investment can be as low as Rs. 100 p.m.

      • Permanent Retirement account would be available to all subscribers.It will be non-withdrawal account

    2. Objective: To provide old age pension for the un-organized sector workers from age 60 till death.

    3. Eligibility: A citizen in un-organized sector between 18-55 years if age and not a member of Employees Provident Find and Miscellaneous Provisions Act 1958 and / or any scheme for pension after retirement from work.

    4. How to apply:

    5. Contributions: Amount

      • Minimum amount per contribution - Rs. 100

        Minimum amount of contribution per year - Rs. 1000

        Maximum amount of contribution per year - Rs. 12000

      • Number: A maximum of 12 contributions in a year.

    6. Contributions from Government: Rs. 1000 each year to each account opened 2012-13. This contribution from Government is available only for accounts with a minimum contribution of Rs.1000 and a maximum contribution of Rs.12000 per annum. The scheme is available for another five years.

    7. Pension Corpus: Consist of Net Asset Value of the Units to the credit of the member.

    8. Pension benefits: Depends upon

      • Amount of corpus at age 60

        Annuity rates at that time

        If the amount of corpus is less than the amount required to purchase minimum pension then the corpus will be refunded to subscriber.

    9. Discontinuation of contributions by the member:

    10. If member does not contribute in any year in the first five years, the government may still contribute Rs. 1000/- for five years provided delayed contribution + interest (as decided by the aggregator) accepted as arrears.

      In case the member does not fulfill eligibility condition, like the member becomes a member of an organized sector, then from the date he shifts to organized sector, the government contribution will not be provided.

  • Identity: Each Subscriber will get an Identity card with his photograph, name and Signature known as PRAN Card. This card established his membership under Swavalamban Scheme.
  • Statetement of Transaction: Once a year, a statement of account of the entire transaction and the market value of the corpus will be sent to the subscribers.
  • Benefits:
    1. (a) At the age of 60, the subscriber can withdrawn 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 annuitized for ensuring payment of annuity 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. In the alternative, if the corpus is not sufficient, 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 protion of the corpus. The heirs of the subscriber also have the option to continue with the NPS account.

  • Costs of the Scheme
  • (a) The Swavalamban account provides security and gives complete details of all transaction to the subscriber. Each subscriber will have a separate individual Retirement Account. This account will show the investments made and the NAV of the corpus. At the time of joining, the subscriber will pay a one-time cost of Rs. 35 for obtaining a PRAN Card.

    (b) Every year, Rs. 70 per annum will be deducted from the NAV of the NPS account for the meeting the cost of record-keeping.

  • Grievance Redressal:
  • (a) There is a Central Grievance Management System (CGMS) - under which any subscriber can either log his complaint, or can send a written complaint to PFRDA or CRA (NSDL). This complaint will be monitored by PFRDA and CRA.

    (b) There is a Call Center - with a 24-hour toll-free telephone facility (Tel. No. 1800222080) - for any subscriber to call and register his complaint regarding the contribution made by them. The subscriber can also see his account on the computer to see that his contributions have been properly recorded.

  • Net asset Value (NAV): will be released on a daily basis. The investments under Swavalamban are subject to market risks and the returns will depend on market conditions.
  • For Swavalamban Yojna
  • Swavalamban gives you Rs. 1000 per year to each account opened in the year 2012-13. The scheme is available for another five years. To avail of Swavalamban benefit, you need to invest between Rs. 1000 - 12000 per year for each of these years.

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