Page 48 - The Insurance Times October 2024

Employees' Pension Scheme, 1995 - is applicable to Rs.1,62,162 to a maximum of Rs.15,00,000,with
all members who joined EPF after 15.11.1995. It minimum pension of Rs.1,000 per month to a maximum
provides pension to the member in case of retirement pension of Rs. 10,000 per month. The scheme provides
as well as family pension to spouse and two children assured returns payable on monthly basis and is
below 25 years of age .Members drawing wages upto exempted from service tax/GST. Loan facility is available
INR 15,000 per month are eligible to contribute under under the scheme after completion of three policy
this Scheme. An amount equal to 8.33% of wages is years upto a maximum of 75% of the purchase price. It
pooled into the EPS from the Employer's contribution. also provides the facility of premature exit for the
Government also contribute to the scheme at the rate treatment of any critical/ terminal illness of self or
of 1.16% of wages. The maximum pensionable salary spouse with return of 98% of the purchase price. In case
for the purpose of determining the monthly pension is the pensioner dies during the term of the policy, the
INR 15,000 per month. The pensionable salary is benefits of the scheme are provided to the nominee or
calculated on the average monthly pay for the the beneficiary of the pensioner.
contribution period of the last 60 months preceding the
5. Varishtha Pension Bima Yojana Ministry of Finance
date of exit from the membership. (Life Insurance Corporation of India) - It is an
3. Social Pension Schemes - There are three pension immediate annuity scheme which provides pension to
schemes under the National Social Assistance (NSAP) senior citizens above 60 years of age for the lifetime
program for people belonging to Below Poverty with the return of purchase price to the family/nominee
Line(BPL) households in rural and urban areas. The on his/her death, The scheme is being operated through
schemes are as follows: LIC of India. The mode of payment of pension options
Indira Gandhi National Old Age Pension Scheme are monthly, quarterly, half-yearly or yearly. There is a
(IGNOAPS) Development - It is the extension of the lock-in period of 15 years in the scheme, and the senior
National Old Age Pension Scheme, 1995. It is a citizen get the benefit 9 percent interest rate per
noncontributory pension scheme which provides annum for a period of 10 years. Investments are eligible
financial assistance to below-poverty-line (BPL) senior for tax exemption under Section 80C of the Income Tax
citizens, widows and people with disabilities with Act of 1961. On surrendering after 15 years purchase
central government assistance of Rs. 200 per month price is returned to the pensioner. In case of surrender
to people in the 60-79 years age group and Rs. 500 to before 15 years on account of critical illness ,98% of the
people above 80 years of age. purchase price is returned back to the pensioner.

Indira Gandhi National Widow Pension Scheme 6. Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PM-
(IGNWPS) provides an amount of Rs.300 per month to SYM) - This scheme started in February 2019, provides
widows aged 40-79 years. old age protection to poor labourers in unorganised
Indira Gandhi National Disability Pension Scheme sector. Unorganized labourers in the age group of 18-
(IGNDPS) - Central government provides benefit of this 40 years having monthly income of less than Rs.15000
pension of Rs.300 per month in poor households to and who are not a member of EPFO/ESIC/NPS (Govt.
funded) are eligible to join the scheme. It is a
persons who are having 80 percent and above/multiple
disabilities (PwDs) and are in the age bracket of 18-79 contributory scheme with the monthly contribution
years. The state government also assist by providing an ranging from Rs.55 to Rs.200 depending upon the entry
age of the beneficiary. Beneficiary has to pay 50% of
additional Rs.200 per month to each beneficiary.
the monthly contribution and an equal contribution is
4. Pradhan Mantri Vaya Vandana Yojana - This scheme paid by the Central government. On attaining the age
was launched by the Ministry of Finance and is
of 60 years, an assured pension of Rs.3000/ is paid to
implemented through LIC of India. This scheme could
the beneficiaries. On death of the beneficiary his /her
be purchased by one time lumpsum payment by any spouse is eligible for 50% monthly pension. If husband
person who is above 60 years of age. The scheme was
and wife, both joins the scheme, they are eligible for
available to be purchased from 4th May to 31st
Rs. 6000/- monthly pension jointly.
March2020. It has a policy term of 10 years. The
purchase price ranges from a minimum amount or 7. National Pension Scheme for Traders and The Self-

The Insurance Times October 2024 43