The Union Cabinet has approved Pradhan Mantri Kisan Pension Yojana, a new Central Sector Scheme, to provide pension cover to farmers.
- Beneficiary: It is a voluntary and contributory pension (social security) scheme for all Small and Marginal Farmers (SMF) across the country. Beneficiary will be provided minimum fixed pension of Rs.3,000 on attaining the age of 60 years. SMF can avail benefits of this scheme at entry age of 18 to 40 years.
- Contributions: Beneficiary farmer is required to contribute Rs 100 per month at median entry age of 29 years. Central Government shall also contribute to Pension Fund an equal amount as contributed by the eligible farmer.
- SMF can opt to allow his/her monthly contribution to this scheme to be made from the benefits drawn from the PM-KISAN Scheme directly.
- Alternatively,SMF can pay his monthly contribution by registering through Common Service Centres (CSCs) under Union Ministry of Electronics and Information Technology.
- Transferability: After subscriber’s death spouse of SMF beneficiary shall be entitled to receive 50% of pension received by beneficiary as family pension, provided he/she is not beneficiary of this scheme.
This is for first time since independence that such pension coverage has been envisioned for farmers. It is estimated to benefit around 5 crore small and marginal farmers within first three years of implementation. This scheme, in addition to PM-KISAN monetary support will ease economic burden on small and medium farmers and lead to greater efficiency.