A new initiative, Swavalamban Scheme to encourage people from unorganized sector to join New Pension System was launched in 2010-11. Under this scheme, those who join the NPS with a minimum contribution of Rs 1000 and a maximum contribution of Rs 12000 per annum during financial year 2010-11, the government will contribute Rs 1000 per year to each NPS account opened in 2010-11. The scheme is aimed at encouraging the people from unorganized sector to voluntarily save for their retirement by enrolling themselves under the New Pension System (NPS).
Under this scheme, Government of India contributes Rs 1000 per annum per NFS account in each year -- during the current year and the next three years -- provided the subscriber contributes any amount between Rs 1000 to Rs 12,000 per annum.
- This is a voluntary defined contribution scheme, which any citizen of the country in the unorganized sector can join.
- The scheme is managed by PFRDA and the Government will release its contribution to PFRDA for crediting the same to the NPS accounts of eligible subscribers.
The government contribution in this scheme is subject to below mentioned conditions:
- Subscriber is not covered under employer assisted retirement benefit scheme and also not covered by social security schemes under any of the following laws:
- Employee Provident Fund and Miscellaneous Provision Act, 1952
- The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948
- The Seamen's Provident Fund Act, 1966
- The Assam Tea Plantation Provident Fund and Pension Fund Scheme Act, 1955
- The Jammu & Kashmir Employee Provident Fund Act, 1961
Subscriber contribution in NPS is minimum Rs. 1000 and maximum Rs.12000 per annum, for both Tier1 and Tier II taken together, provided subscriber makes minimum contribution of Rs.1000 per annum to his Tier 1 account.