National Pension Scheme For Traders And Self Employed Persons
National Pension Scheme for Traders and Self-Employed Persons (Vyapari Pension Yojana)
The National Pension Scheme for Traders and Self-Employed Persons, also known as Vyapari Pension Yojana, is a significant initiative by the Ministry of Labour and Employment aimed at providing financial security to small traders and self-employed individuals across India. This voluntary and contributory pension scheme not only ensures a steady income during retirement but also extends benefits to the beneficiaries’ spouses in the case of their demise.
Scheme Overview
This pension program is specifically tailored for self-employed persons, including small traders and shopkeepers, who significantly contribute to the nation’s economic landscape. The scheme promises a minimum assured pension of ₹3,000 per month when the beneficiary reaches the age of 60, thereby ensuring financial support during their retirement years.
- Beneficiaries will receive a guaranteed monthly pension of ₹3,000 upon turning 60, providing essential financial assistance.
- The scheme recognizes the vital role of the unorganized sector in the Indian economy, which contributes significantly to the Gross Domestic Product (GDP).
- Applicants between the ages of 18 and 40 are required to contribute monthly amounts ranging from ₹55 to ₹200 until they reach 60 years of age.
- Pensions will be credited monthly to the beneficiaries’ pension accounts after they turn 60.
Benefits of the Scheme
Family Support in Case of Death
In the unfortunate event of a beneficiary’s death while receiving the pension, their spouse is eligible to receive 50% of the pension as a family pension, ensuring continued financial support for the family.
Support in Case of Disablement
If a contributing beneficiary becomes permanently disabled before the age of 60 and is unable to continue their contributions, their spouse has the option to either continue the scheme with regular payments or withdraw the contributions made along with accrued interest, whichever amount is higher.
Exiting the Pension Scheme
Beneficiaries wishing to exit the scheme before completing ten years will receive their contributed amount with interest at the savings bank rate. If they exit after ten years but before reaching 60, they will receive their contributions along with the higher of the accumulated interest or the savings bank interest. In the event of a beneficiary’s death, their spouse can either continue the scheme or withdraw their contributions along with the interest accrued.
Eligibility Criteria
- The applicant must be a self-employed trader, shopkeeper, or vyapari.
- Applicants should be between the ages of 18 and 40.
- The annual turnover of their business must not exceed ₹1.5 crores.
Application Process
The application process for this scheme is simple and can be completed online through Common Service Centers (CSC). Below are the detailed steps for enrollment:
- Visit the nearest Common Service Center (CSC).
- Gather the necessary documents: Aadhaar Card, Savings/Jan Dhan Bank Account details along with the IFSC Code (evidence can include Bank Passbook, Cheque Book, or a copy of the bank statement).
- Make an initial cash contribution to the Village Level Entrepreneur (VLE).
- The VLE will enter the Aadhaar number, name, and date of birth of the applicant for authentication.
- The VLE will complete the online registration by filling in details such as bank account information, mobile number, email address, GSTIN, annual income, spouse information (if applicable), and nominee details.
- A self-certification regarding eligibility conditions will be conducted.
- The system will automatically calculate the monthly contribution based on the beneficiary’s age.
- Pay the first subscription amount in cash to the VLE.
- Sign the enrollment cum auto debit mandate form, which the VLE will then scan and upload into the system.
- A unique Vyapari Pension Account Number (VPAN) will be generated, leading to the issuance of a Vyapari Card.
Official Source
For further details and information, please visit myScheme.gov.in.
Key Points
- Eligibility: Self-employed traders or shopkeepers aged 18-40 with an annual turnover not exceeding ₹1.5 crores.
- Benefits: Family pension for spouses upon the beneficiary’s death and options for disablement.
- How to Apply: Online application through CSC with necessary documents.
Benefits
Benefits to the family on the death of an eligible beneficiary:
During the receipt of a pension, if an eligible beneficiary dies, his spouse shall be only entitled to receive fifty percent of the pension received by such eligible beneficiary, as a family pension, and such family pension shall be applicable only to the spouse.
Benefits on disablement:
If an eligible beneficiary has given regular contributions and become permanently disabled due to any cause before attaining his age of 60 years, and is unable to continue to contribute under this Scheme, his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit the Scheme by receiving the share of contribution deposited by the such beneficiary, with interest as actually earned thereon by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher.
Benefits on Leaving the Pension Scheme:
In case an eligible beneficiary 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 beneficiary 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.
If an eligible beneficiary has given regular contributions and died due to any cause, his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit by receiving the share of contribution paid by such beneficiary along with accumulated interest, as actually earned thereon by the Pension Fund or at the savings bank interest rate thereon, whichever is higher
After the death of the beneficiary and his or her spouse, the corpus shall be credited back to the fund.
Application Process
Apply Online - via CSC
Step 1: The interested eligible person shall visit the nearest CSC center.
Step 2: Following are the prerequisites for the enrollment process: Aadhaar Card; Savings/Jan Dhan Bank Account details along with IFSC Code ( Bank Passbook or Cheque Leave/book or copy of bank statement as evidence of bank account )
Step 3: An initial contribution amount in cash will be made to the Village Level Entrepreneur (VLE).
Step 4: The VLE will key in the Aadhaar number, Name of the beneficiary, and Date of birth as printed on the Aadhaar card for authentication.
Step 5: The VLE will complete the online registration by filling up the details like Bank Account details, Mobile Number, Email Address, GSTIN, Annual Turnover Income, Spouse (if any), and Nominee details.
Step 6: Self-certification for eligibility conditions will be done.
Step 7: The system will auto calculate the monthly contribution payable according to the age of the Beneficiary.
Step 8:The beneficiary will pay the 1st subscription amount in cash to the VLE.
Step 9: Enrollment cum Auto Debit mandate form will be printed and will be further signed by the beneficiary. VLE will scan the same and upload it into the system.
Step 10: A unique Vyapari Pension Account Number (VPAN) will be generated and Vyapari Card will be printed.
References & Official Links
Scheme Details
| Full Name | National Pension Scheme For Traders And Self Employed Persons |
| Short Title | NPS-TSEP |
| Level | Central |
| Scheme For | Individual |
| Ministry | Ministry Of Labour and Employment |
| Categories | Banking,Financial Services and Insurance |
| States | All India |
| Gender | All |
| Caste/Category | PwD |
| Area | Rural |
| Source | myScheme.gov.in ↗ |