Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)

Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)

• The Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) provides for an assured monthly pension of Rs. 3000/- to all land holding Small and Marginal Farmers(SMFs), whether male or female, on attaining the age of 60 years.
• All Small and Marginal Farmers (SMFs) in all States and Union Territories, and who do not fall within the purview of the exclusion criteria, who are of the age of 18 years and above and up to the age of 40 years are eligible to avail benefits of this Scheme by joining it.
• The Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) is an old age pension scheme for all land holding Small and Marginal Farmers (SMFs) in the country.
• The Scheme was formally launched on 12th September, 2019.
• The cut-off date for determination of eligibility of beneficiaries under the scheme is 01.08.2019.
• The PM-KMY is a Central Sector Scheme administered by the Department of Agriculture, Cooperation & Farmers’ Welfare, Ministry of Agriculture & Farmers’ Welfare, and Government of India in partnership with the Life Insurance Corporation of India (LIC).
• The LIC shall be the Pension Fund Manager and responsible for pension payout.
• It is a voluntary and periodic contribution based pension system meant for all land holding Small and Marginal Farmers (SMFs) throughout the country, subject to the aforesaid exclusion criteria.
• The SMFs shall have the option to allow payment of his/her voluntary contribution to the Scheme from the financial benefits received by them from the PM-KISAN Scheme directly.
• The Central Government through the Department of Agriculture, Cooperation and Farmers’ Welfare shall also contribute an equal amount as contributed by the eligible subscriber, to the Pension Fund.
• The State / UT Governments will have the option of sharing the burden of individual SMF beneficiary contribution.
• The amount of the monthly contribution shall range between Rs.55 to Rs.200 per month depending upon the age of entry of the farmers into the Scheme.
• The beneficiaries may also choose an option to pay their contributions on a quarterly, 4-monthly or half-yearly basis.
• In case an eligible subscriber exits this Scheme within a period of less than ten years from the date of joining the Scheme by him, then the share of contribution by him only will be returned to him with savings bank rate of interest payable thereon.
• If an eligible subscriber exits after completion of a period of ten years or more from the date of joining the Scheme by him but before his age of sixty years, then his share of contribution only shall be returned to him along with accumulated interest thereon as actually earned by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher.
• In case of death of the subscriber before the vesting date, if the spouse does not exercise the option of continuing under the scheme, then the subscribers’ contributions along with fund interest earned or Savings Bank Interest whichever is higher would be payable.
• During the receipt of pension, if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension received by the beneficiary as family pension provided he/she is not already a beneficiary of the scheme. Family pension is applicable only to spouse.
• If a beneficiary becomes ineligible for the Pension under PM-KMY, his account will be active but Government’s contribution (50%) shall be stopped. If beneficiary agrees to pay the entire amount of the contribution, he will be allowed to operate the account. At the age of 60, he shall be allowed to withdraw his contribution with an interest equivalent to the prevailing saving bank rates.
• There is no provision for commutation of pension under any circumstances
• The Eligible SMFs desirous of joining the scheme shall visit the nearest Common Service Centre (CSC) along with his Aadhaar card and bank passbook or account details. The enrolment at CSC Centres is free of cost and the applicant farmers / their spouse shall not have to pay any charge for the purpose.
• Rs 30 per beneficiaries will be paid by the Department of Agriculture, Cooperation & Farmers’ Welfare, Ministry of Agriculture & Farmers’ Welfare to CSC.
• SMF means those have Cultivable land up to 2 hectares as per land records of the concerned State/UT.

Exclusion criteria:

• SMFs covered under any other statutory social security schemes such as the National Pension Scheme (NPS), Employees’ State Insurance Corporation Scheme, Employees’ Fund Organization Scheme etc.
• Farmers who have opted for the Pradhan Mantri Shram Yogi Maan-Dhan Yojana (PMSYM) National Pension Scheme for Traders and Self Employed Persons Yojana administered by the Ministry of Labour & Employment
• Following farmers also excluded:

1. All institutional landholders
2. Former and present holders of constitutional posts
3. Former and present Ministers/ State Ministers and former/present Members of the Lok Sabha/ Rajya Sabha/ State Legislative Assemblies/ State Legislative Councils, former and present Mayors of Municipal Corporations,
4. former and present Chairpersons of District Panchayats.
5. All serving or retired officers and employees of the Central/ State Government Ministries/ Offices/ Departments and their field units, Central or State PSEs and Attached offices/ Autonomous Institutions under the Government as well as regular employees of the Local Bodies (Excluding Multi Tasking Staff / Class IV/Group D employees)
6. All persons who paid Income Tax in the last assessment year.
7. Professionals like doctors, engineers, lawyers, chartered accountant and architects registered with Professional bodies and carrying out profession by undertaking practice.

When a PM-KMY Pension Account is in default, the same may be regularized with payment of all contributions that have fallen due along with interest as follows:

• Until 1 month from first unpaid contribution: No late fee would be charged. Account can be regularized by paying contribution amount only.
•  If the period of default of a particular installment is up to 12 months, the reckoning of interest would be simple interest method. But if period of default of a particular installment is over 12 months, then compounding interest would be reckoned for completed number of years.
• The interest/late fee charged would be credited into pension account and shall be part of fund earnings under the scheme.
• If contributions remain unpaid for a period of six months, such account status would be changed to ‘dormant account’ and for dormant accounts demand would not be raised further. Suitable SMS alerts / notices would, however, be sent for the dormant status accounts for a period of three years from date of first unpaid contribution. However, after three years subscriber may be allowed to regularize his/her contribution by paying the entire outstanding dues, along with interest of the rate as determined by the Government from time to time.