In addition to extending the benefits of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Yojana to "all" land holding eligible farmer families, the Central Government on 31 May 2019 approved a new pension cover for farmers in its first Cabinet meeting on forming the new government.
The Pradhan Mantri Kisan Mandhan Yojana will provide small and marginal farmers with a minimum fixed pension of Rs 3,000 per month on attaining the age of 60 years.
The pension scheme was launched on 12 September by PM Modi in Ranchi.
In an earlier statement, the government said that an estimated 5 crore farmers will be receiving the pension benefit in the first three years itself. The Central government will make an equal contribution towards this voluntary pension scheme.
"It is estimated that 5 crore small and marginal farmers will benefit in the first three years itself. The Central Government would spend Rs. 10774.50 crore for a period of 3 years towards its contribution (matching share) for providing social security cover as envisaged under the scheme," the Ministry of Agriculture and Farmers Welfare said in a release.
"It is also for the first time since independence that such a pension coverage has been envisioned for farmers," it further said.
Features of the PM Kisan Mandhan Yojana
- It is a voluntary and contributory pension scheme for all small and marginal farmers across the country.
- Farmers will have to contribute Rs 100 per month.
- Those between 18 to 40 years of age can participate in the PM Kisan Mandhan Yojana.
- A minimum fixed pension of Rs 3,000 will be provided to the subscribers on attaining the age of 60 years.
- The Central Government will make a contribution to the Pension Fund equal the amount contributed by the eligible farmer.
- The pension fund will be managed by LIC (Life Insurance Corporation of India) and will be responsible for the pension payout.
- On the subscriber's death, while receiving the pension, the spouse of the beneficiary shall be entitled to receive 50 percent of the pension received by the beneficiary as a family pension, provided he/she is not already a beneficiary of the scheme.
- If the subscriber dies during the period of contribution, the spouse shall have the option of continuing the Scheme by paying a regular contribution.
- An interesting feature of the Scheme is that the farmers can opt to allow his/her monthly contribution to the Scheme to be made from the benefits drawn from the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme directly.
- A farmer can also pay his monthly contribution by registering through Common Service Centres (CSCs) under MeitY.
- An online grievance redressal system will be created to help keep the process transparent.