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Swavalamban Scheme

The Swavalamban Scheme will be applicable to all citizens in the unorganised sector who join the New Pension System (NPS) administered by the Interim Pension Fund Regulatory and Development Authority (PFRDA).


The scheme will be applicable to all persons in the unorganised sector subject to the condition that the benefit of Central Government contribution be available to the subscribers whose contribution to NPS is minimum Rs.1,000 and maximum Rs. 12,000 per annum, for both Tier I and II accounts under NPS, taken together, provided that the person makes a minimum contribution of Rs. 1000 per annum to his Tier I NPS account.

Benefits under the Scheme:

Under the scheme, Government will contribute Rs. 1000 per year to each NPS account of eligible subscribers. Swavalamban account opened in the period 2013-2014 to 2016-2017 will get the Swavalamban benefit up to 2016-17.

Exit from NPS:

The exit from the Swavalamban Scheme is permitted at age 50 or a minimum tenure of 20 years, whichever is later, with 40% minimum annuitisation of pension wealth. Exit before age 50 or tenure less than 20 years, is possible with 80% minimum annuitisation of pension wealth.

However, the exit would be subject to the overriding condition that the amount of pension wealth to be annuitised should be sufficient to yield a minimum amount of Rs. 1,000 per month. If 2 the annuitised pension wealth does not yield an amount of Rs. 1,000 per month, the percentage of pension wealth to be annuitised would be increased so that the pension amount becomes Rs. 1,000 per month, failing which the entire pension wealth would be subject to annuitisation. This minimum pension ceiling may be revised from time to time.

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