PM Kisan Samman Nidhi to fund Kisan Maan Dhan pension scheme: Prime Minister Narendra Modi is set to launch first of its kind pension scheme for small and marginalised farmers. Under the scheme, which will be launched by the prime minister on September 12 in Ranchi, around 5 crore small marginalised farmers will get a minimum pension of Rs 3000/month on attaining the age of 60. Farmers aged 18 to 40 years will be eligible to apply for Kisan Maan Dhan yojana. Under the scheme, the farmers will have to make a monthly contribution of Rs 55 to Rs 200, depending on their age of entry, in the Pension Fund till they reach the retirement date (age of 60 years). The Central government will make an equal contribution of the same amount in the pension fund for farmers.
No extra burden on farmers’ pocket
Interestingly, farmers can contribute to the pension fund under Kisan Maan Dhan Yojana without putting extra burden on their pockets. The farmers, who are also beneficiaries of PM-Kisan Scheme, will get the option to allow their contribution debited from the benefit of that scheme directly.
Those who don’t want to use PM-Kisan fund for the pension scheme will be allowed to deposit their monthly instalment through common service centres (CSCs).
What is PM-Kisan?
PM-Kisan Samman Nidhi is a 100 per cent centrally-funded scheme under which farmers get an income support of Rs 6000 per year in three equal instalments from the government. The income support is provided only to small and marginal farmers having a combined land-holding/ownership of up to 2 hectares.
Kisan Maan Dhan Yojana: Fund manager
Under Kisan Maan Dhan Yojana, spouse would also be eligible for a separate pension of Rs 3000 by making a separate contribution to the Fund, which will be the Pension Fund Manager. The LIC would also be responsible for the Pension payout.
Kisan Maan Dhan Yojana: Rules
If the farmer dies before the date of retirement, the spouse would be able to continue in the scheme by paying the remaining contributions til the remaining age of the deceased farmer. In case the spouse does not wish to continue, the total contribution made by the farmer along with interest will be paid to the spouse, Narendra Singh Tomar, Union Minister for Agriculture & Farmers Welfare, had said last month.
In case there is no spouse, the total contribution along with interest will be paid to the nominee.
When the farmer dies after the retirement date, the spouse will receive 50% of the pension as Family Pension. After the death of both the farmer and the spouse, the accumulated corpus will be credited back to the Pension Fund.
Kisan Maan Dhan: Voluntary exit
Kisan Maan Dhan yojana beneficiaries will be able to opt voluntarily to exit the Scheme after a minimum period of 5 years of regular contributions. On exit, their entire contribution will be returned by LIC with an interest equivalent to prevailing saving bank rates.