Tuesday, January 31, 2012
by
Indian Real Estate News
Current open Infra Bond Application form
Recently, the government announced a new pension and life insurance scheme for NRIs. The scheme allows over five million workers, especially those working in West Asia, to save money for the future. The scheme is called Pension and Life Insurance Fund (PLIF).
The scheme encourages overseas workers to voluntarily save money for their return and resettlement in their later years. The scheme will also provide a low-cost life insurance cover against natural death. This scheme fulfils a long pending demand of those working abroad. Under the scheme, the government will contribute Rs 1,000 per annum for all subscribers who contribute between Rs 1,000 and Rs 12,000 per year. Women working overseas will get a special additional contribution of Rs 1,000 a year from the Ministry of Overseas India Affairs (MOIA).
The scheme will be of great help to those working in 'emigration check required' countries. According to the government, around 20 percent of overseas workers in these countries are women. They are vulnerable to uncertainty due to lower income, a shorter working age and periodic interruptions in employment due to family responsibilities. This fund will be used to contribute partly to a pension and insurance cover for these workers.
A special 'returns and resettlement contribution' of Rs 1,000 by the MOIA will also be given to those working overseas who contribute Rs 4,000 per annum towards the Returns and Resettlement Scheme. This scheme will provide social security cover to those working overseas.
These workers have been excluded from access to formal social security and retirement savings schemes available to residents of the 'emigration check required' countries. They are similarly excluded from pension and social security schemes available to formal and informal sectors' workers in India.
The scheme is expected to benefit over five million unskilled and semi-skilled workers employed overseas on temporary contract visas. The new scheme is entirely voluntary. It is only for those who want to take it.
Workers will be required to contribute partly for their pension and insurance cover. Only those workers who take proper immigration clearance before going abroad will be covered under the scheme. The scheme provides an opportunity to workers who don't get a high salary to accumulate savings for a resettlement when they return to India. It also provides life insurance cover for a specified period in case of natural death.
This will provide the much-needed social security cover for those working overseas, and not covered under any kind of social security schemes. On returning to India, they will have a fixed source of income by way of pension as well as insurance to cover their urgent needs. Being a contributory scheme, they will be encouraged to save and participate in it.
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