Transcript Swavalamban for Unorganized Sector

HEARTY WELCOME
To Presentation on
SWAVALAMBAN
NEW PENSION SCHEME (LITE)
Swavalamban
A Pension Solution
for Government of India
Administered by PFRDA
•Designed to provide regular old age income from age 60
till death
•It is a Pension Scheme for Subscribers
•It is based on Defined Contribution System
•Safe and Reasonable market based returns over long
term
•Simple, Flexible and Transparent system.
•It is portable – can be operated from anywhere in India
Swavalamban Scheme
•Issue of unique Permanent Retirement Account Number
(PRAN) to each subscriber
•Services will be offered to individual subscriber through
Aggregators (LICHFL)/LIC as facilitator
•Designated offices of LIC will act as collection centres for
designated areas
•Low cost structure.
Swavalamban Scheme
Eligibility conditions for enrolment / opening account:
• Citizen in un-organized sector, and
• Aged between 18 and 55 years, and
• Not a member of Employees Provident Fund and
Miscellaneous Provisions Act 1952 and/or any
scheme for pension after retirement from work
Swavalamban Scheme
Eligibility for Govt. contribution:
• Minimum of Rs. 1,000 and a maximum of Rs. 12,000
per annum of contribution.
• A member of unorganized sector and not a member
of Employees Provident Fund and Miscellaneous
Provisions Act 1952 and/or any scheme for pension
after retirement from work
Swavalamban Scheme
Government Contribution
Government will contribute Rs. 1,000 per year
to each account opened. This contribution
from Government will be available only for
accounts with a minimum contribution of Rs.
1,000 and a maximum contribution of Rs. 12,
000 per annum for five years.
Swavalamban Scheme
To join Swavalamban, the Subscriber should..
• Complete the requisite subscription form, in
duplicate in black ink
• Comply KYC norms like
Affix colored photograph in both the forms
Provide photo-identity, proof of residence and Age
proof.
• Remittance of contribution in agreed form
Swavalamban Scheme
Benefits
In case of survival at age 60,
( a ) The subscriber can withdraw 60% as lump sum, and 40%
will have to be annuitized to ensure a minimum pension of
Rs. 1,000 per month;
( b ) In case 40% of the corpus is not sufficient to buy an
annuity of Rs1000/- pm, the commutation portion can be
reduced to that extent.
Swavalamban
Benefits
In case of premature exit before age 60,
subject to the condition that..
80% of the corpus will be annuitized to yield a
minimum annuity of Rs. 1,000. In the
alternative, if the corpus is not sufficient,
100% of the corpus will be annuitized to
provide for an annuity of Rs. 1,000 minimum.
Swavalamban Scheme Benefits
In case of death of the subscriber the entire
money can be withdrawn by his heirs
immediately, without annuitizing any portion
of the corpus OR they can also opt for annuity
provided the fund available is sufficient to
provide an annuity of Rs1000/- pm.
Swavlamban Pension Scheme
corpus at age 60 with monthly saving
of Rs1000
mthly pension on corpus
accumulated at age 60
Age at
entry
8%
10%
12%
8%
10%
12%
25
2293882
3796638
6430959
13591
22495
38103
30
1490359
2260488
3494964
8830
13393
20708
35
951026
1326833
1878847
5635
7861
11132
40
589020
759369
989255
3490
4499
5861
45
346038
414470
499580
2050
2456
2960
50
182946
204845
230039
1084
1214
1363
Swavalamban Scheme
PROCESS FLOW
AT THE LEVEL OF
NODAL AGENCY
Subscriber Registration
And
Initial Contribution
• Identify eligible subscribers & explain the scheme.
• Collect completed application forms, check form
along with KYC documents submitted and attest by
signing on page 3 of the application form
• Collect Rs.100 to 12000 from the subscriber along
with the the application form for the PRAN.
• Transfer the contribution simultaneously with
documents to designated office of LIC
Process Flow
At the level of
Nodal Agency
• Nodal agency to send both
the application forms along
with the KYC documents
and the data in excel sheet
as per structure to
designated office of LIC
• (PRAN will not be there in
the first list)
Data Structure
• Sr. No.
• Agency Code No.
• Branch Code No.
• PRAN No.
• Subscribers Name
• Father’s Name
• Date of Birth
• Amount
• NL – CC No.
Process at
designated office of LIC (DOLIC)
• DOLIC will send the PRAN cards & kits to nodal agency
for distribution amongst subscribers
• Before the receipt of PRAN kits Nodal agency will
receive PRAN numbers from DOLIC.
• Nodal agency will incorporate the PRAN numbers in the
data structure as above & send soft copy of the same in
future with subsequent contributions
Process
at DOLIC
• Send the PRAN kit to nodal agencies concerned
• Incorporate the PRAN numbers in the data
structure as above & send soft copy of the same
to respective nodal agencies
• Transfer the contribution of Subscriber for
whom PRAN is generated to the LIC HFL Current
Bank Account (Aggregator) Every pre-fixed day of
the week.
Swavalamban Registration Complete
Process Flow
t
DOLIC
LIC C.O
Nodal Agency
Distribution of
the card to the
Agents
PRAN
CARDS
Rejections
Subscriber
3. Consolidation &
Submission of
Forms along with
KYC documents
DOLIC
NSDL/FC
Generate PRN and/or
Rejection Letter
Consolidation
17
Swavalamban Scheme
PROCESS FLOW
Subsequent Contribution
Process Flow
At Nodal Agency
• Deduct or collect the contribution from
subscriber
• Transfer the same to DOLIC
• Send list, in soft copy as well as hard copy, in
the structure already given
Process
At DOLIC
• Transfer the amount to LIC HFL Account
• Send details of transfer and data to CO
P&GS, Mumbai
Swavalamban Fund Transfer
Complete Process Flow
Fund
Manager
Annual Fund Statement
Nodal
Agency
Rejections
Annual
Statements
Subscriber
CO P&GS
HFL
A/C
Mumbai
•Annual fund
statement
LICDO
Fund to Trustee Bank & Data to CRA
Consolidation
21
Swavalamban Scheme
Charges levied by NSDL
• At the time of joining, one-time cost of Rs. 35
for obtaining PRAN card.
• Every year, Rs. 70 per annum as cost of
record-keeping
• Transaction cost: ‘Nil” for first 12 transactions.
Rs. 5/- per transaction thereafter, in each
year.
Swavalamban Scheme
The contributions, net of charges, would be
converted to Units depending on the NAV and
credited to subscriber’s account.
The corpus would be value of the units to the
credit of the member.
A statement of account of entire transactions and
the market value of the corpus will be sent to
subscribers, once a year.
With LIC as facilitator, you get added benefits
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•
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Hassle free and error free quality service
Prompt Response to queries and complaints
Huge and well spread infrastructure
Systems already implemented and running
smoothly for LIC agents ‘ similar scheme
THANK YOU