- It is an old age pension scheme to provide social security net to around 3 crore Small and Marginal old age farmers as they have minimal or no savings to provide for old age and to support them in the event of consequent loss of livelihood.
- It aims to help them live a healthy and happy life after they reach their old age.
- Small and Marginal farmer (SMF) of age of 18-40 years a farmer who owns cultivable land up to 2 hectares as per land records of concerned State/UTs.
- Exclusives: SMFs covered under statuary social security schemes such as National Pension Scheme (NPS), Employees State Insurance corporation scheme, Pradhan Mantri Shram Yogi Maan Dhan Yojana (PM-SYM) etc.
- It is a Central Sector Scheme.
- It is a voluntary and contribution-based pension scheme for farmers in the entry age group of 18 to 40 years and a minimum monthly pension of Rs. 3000 will be provided to them on attaining the age of 60 years.
- The monthly contribution by farmers ranges between Rs. 55 to 200 to the Pension Fund till the date of retirement i.e. 60 years depending on the age of entry into the scheme, with provision of equal contribution by the Central Government.
- The life Insurance Corporation of India (LIC) will be the pension fund Manager and responsible for pension pay out.
- In case of death of the farmer before retirement date, the spouse may continue in the scheme by paying the remaining contributions till the remaining age of the deceased farmer.
- If not wish to continue, the total contribution made by the farmer alongwith interest will be paid to spouse.
- If the farmers dies after the retirement date, the spouse will receive 50% of the pension as Family Pension. After the death of both the farmer and the spouse, the accumulated corpus shall be credited back to the Pension Fund.
- Synergy with other initiatives:
- Farmers can opt to allow his/her monthly contribution to the Scheme to be made from the benefits drawn from the Pradhan Mantri Kisan Samman Nidhi (PMKISAN) Scheme directly. But its not compulsory.
- The initial enrolment to the PM-KMY is being done through the Common Service Centres (CSCs, and this is free of cost.
- Village Level Entrepreneurs (VLEs) of the CSCs who are field level functionaries, have also have been provided incentives for ensuring maximum enrolment of farmers.
- There will be an appropriate grievance redressal mechanism of LIC, banks and the government.
- An empowered committee of secretaries has also been constituted for monitoring, review and amendment of the scheme.