The government has evolved a new scheme to provide social security pension of Rs 3,000 per month to farmers above the age of 60 years.The scheme provides for payment of a minimum fixed pension of Rs 3,000 per month to eligible farmers on attaining the age of 60 years. It is a voluntary and contributory pension scheme, with entry age of 18 to 40 years.
Citing an example on how the scheme works, he said the beneficiary is required to contribute Rs 100 per month in the pension fund at median entry age of 29 years, with matching contribution of Rs 100 by the Central Government.
The farmers may need to make a monthly contribution of between ₹ 55 and ₹ 200 and the government would pay a matching amount, he said. The pension fund would be managed by LIC.In case of death of the farmer before the retirement date, the spouse may contribute the scheme paying the remaining contributions till the remaining age of the deceased farmer.
If the spouse does not want to contribute, the total contribution made by the farmer along with the interest will be paid to the spouse or to the nominee if there is no spouse. If the farmer dies after the retirement date, the spouse will receive ₹ 1,500, or 50 per cent of the pension, as a family pension, the Minister said. After the death of both the farmer and the spouse, the accumulated corpus will be credited back to the pension fund.