Part of: Mains GS-II – Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes.
- The centre’s pension scheme for small traders (PMLVMDY) has been notified and being introduced on trial basis from this week
- The scheme assures a minimum monthly pension of Rs. 3,000/- month after attaining the age of 60 years
- Who can enrol for this scheme?
- All small shopkeepers and self-employed persons as well as the retail traders with GST turnover below Rs. 1.5 crore and age between 18-40 years
- Potential of the Scheme?
- The scheme would benefit more than 5 crore small shopkeepers and traders.
- Simplified process of enrolment– based on self-declaration as no documents are required except Aadhaar and bank account. Interested persons can enrol themselves through more than 3.25 lakh Common Service Centres spread across the country.
- Government of India will make matching contribution in the subscribers’ account
- LIC has been chosen as pension fund for this scheme.
Do you know?
- Only 7.4% of the working age population in India is covered under a pension program( 65% for Germany & 31% for Brazil) according to the 2017 WEF’s report on Global Human Capital.
- Demographically, India will transition slowly from a ‘young’ to a ‘greying’ country, where persons above the age of 60 would increase from 8.9% of the population now to 19.4% by 2050
- Ramadorai Committee on Household finances – India is sitting on a ticking pension time bomb, whereby demographic dividend can become demographic concern