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Swavalambana Yojana benefits-Swavalamabana Yojana for whom?

Posted by Malhotra on November 14th, 2011 at 4:00 pm

Swavalambana Yojana Scheme

 Swavalambana Yojana Scheme

A peaceful retired life is only possible for lucky few. Poor people will have to work hard for living all their life. But what is there condition when they cannot work? ‘Swavalambana Yojana’ is the scheme for such people.

People who work as drivers, house maids etc will get salary until they work. But when in future they stop working due to ill health of old age they have to face lot of problems as they will not get any pension. National Pension System has introduced ‘Swavalambana Yojana’ scheme for people like auto drivers, daily labor, drivers etc.

Swavalambana Yojana is a unique scheme. This scheme initiated by Indian government is meant for those who cannot invest at least Rs. 12,000 annually in National pension scheme and those who have no pension facility after retirement. The main feature of the scheme is if the people who became members in this scheme pay Rs. 1,000 annually; central government will invest Rs. 1,000 every year for five years.

Swavalambana Yojana scheme is suitable for those who have no retirement benefits. People who are over 18 years are eligible to apply for this scheme. Labors, auto drivers, truck drivers etc are eligible to join in this scheme. There is no income limit for joining this scheme. The main objective of Swavalambana Yojana is to bring as many people as possible in to this scheme. Only eligibility to join this scheme is the person should not be eligible for any provident fund scheme. Central and state government employees, private employees for those EPF is applicable etc are not eligible to join this scheme. That means people who will not have any income sources after retirement are only eligible for this scheme.

There is a lot of difference between National Pension Scheme and Swavalambana Yojana scheme. Those who join this scheme will have to open a Tier-1 account and deposit Rs. 1,000 annually. If there is feasibility they can open Tier-2 account and invest another Rs. 11,000. But this is not compulsory. Those who opt for Tier-2 account can invest unlimited amount in the account and can withdraw amount whenever they required.

Government contribution for Swavalambana Yojana

Swavalambana Yojana was introduced in the year 2012-11. Later this was extended for another five years. Central government will deposit Rs. 1,000 in the accounts of those who became members in this scheme. Government will provide this amount to all those who registered their names during this period. If in the future any member becomes ineligible for the scheme government will stop depositing the amount in his account.

Becoming a member in Swavalambana Yojana scheme

Swavalambana Yojana scheme can be choose from the post offices or national banks that maintain NPS account. Social service centres like ‘NPS Light’ can also be contacted to know the details of Swavalambana Yojana scheme. Logon to www. pfrda.org.in for obtaining details. The person who wants to join in this scheme have to give a declaration stating that he will not be eligible for any retirement benefits in the future.

The amount invested in the account of members of Swavalambana Yojana will be given back when the person crosses the age of 60 years. 40% of the amount should be spending on annuity schemes that provide annual income. If the amount is withdrawn before the member reaches 60 years of age, 80% of the amount has to be allotted to Annuity schemes. Main objective of Swavalambana Yojana scheme is to provide the members with at least Rs. 1,000 pension per month.

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