The government has a special pension scheme for those in the unorganised sector of the economy. National Pension Scheme for Traders and Self-Employed Persons (NPS-Traders) 2019 or the NPS Traders Scheme is aimed at providing a fixed pension to those who are not a part of the organised sector. NPS Traders Scheme is a defined benefit pension scheme and is self-contributory in nature. However, with the government also matching the contribution amount, enrolling for it makes sense to those looking for a certain fixed amount for a lifetime. The scheme comes with a fixed and assured monthly pension of Rs 3000 till lifetime of the eligible subscriber.
Who can join NPS Traders Scheme
The scheme is open for subscription to those retail traders, shopkeepers and self-employed persons who could be the shop owners, retail traders, rice mill or oil mill owners, commission agents, brokers of real estate, owners of small hotels, restaurants and other Laghu Vyaparis. To be eligible one has to be of an age between 18 and 40 years and the annual turnover of the trader or self-employed person cannot be more than Rs. 1.5 crore.
Who cannot join NPS Traders Scheme
Those who are a member of the EPF, NPS ( with government contribution), ESIC or is an income tax assessee cannot join the scheme. The NPS Traders Scheme is, therefore, primarily meant for old age protection and social security of retail traders or shopkeepers and self-employed persons.
How NPS Traders Scheme works
NPS Traders Scheme is a voluntary pension scheme which means that if the individual wants to get a fixed pension from age 60, he or she will have to contribute towards the scheme. The amount of monthly contribution will depend on the age of the individual and an equal amount will be contributed monthly by the government. From age 60, the subscriber will get an assured amount of monthly pension for the lifetime of Rs 3,000 irrespective of the entry age. In the case of death of the subscriber, the spouse will get 50 per cent i.e. Rs 1,500 per month for his or her lifetime.
NPS Traders Scheme pension
An example: A and B age 25 and 35 respectively enrols for the NPS Traders Scheme. As per the NPS Traders Scheme Chart, A contributes Rs 80 per month ( equal contribution by the government) till age 60 and B contributes Rs 150 per month ( equal contribution by the government) till age 60. from age 60, both A and B start getting a monthly pension of Rs 3,000 for a lifetime.
How to join NPS Traders Scheme
The enrolment process is kept simple and one just needs to have a bank account (or, Jan Dhan account ) and an Aadhaar card. There are about 3.5 lakh common service centres (CSC) across the country from where one can enrol in the scheme.