PM Announces New Pension Scheme for Overseas Indians

Recognizing the role of overseas Indians in the country's development, Prime Minister Manmohan Singh said that the government and people of India recognized and greatly valued the important role being played by overseas Indian living abroad. He said that the Indian diaspora has much more to contribute to the building of modern India. The Prime Minister told the overseas Indians that the government has decided to introduce and sponsor a new Pension and Life Insurance Fund for overseas Indian workers.

On 4th January 2012, the Union Cabinet had cleared a proposal for setting up of a Pension and Life Insurance Fund (PLIF) for the NRI’s in the Emigration Check Required (ECR) countries.

Fulfilling a long-standing demand of the Indian workers working abroad, a new Pension and Life Insurance Scheme for them was introduced by the government that would allow over 5 million workers, especially those working in the Gulf, to save money for the future.

The scheme, which was recently cleared by the Cabinet, would encourage, enable and assist overseas workers to voluntarily save for their return and resettlement and old age. It would also provide a low-cost life insurance cover against natural death.

Under the scheme, the government would co-contribute Rs 1,000 per annum for all subscribers who contribute between Rs 1,000 and Rs 12,000/- per year. Overseas women workers would enjoy a special additional co- contribution of Rs 1000/- a year.

Source-Medindia