UPSC Prelims 2024 Q100: PM Shram Yogi Maan-dhan Pension — Explained

With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements:

1. The entry age group for enrolment in the scheme is 21 to 40 years.

2. Age specific contribution shall be made by the beneficiary.

3. Each subscriber under the scheme shall receive a minimum pension of ₹ 3,000 per month after attaining the age of 60 years.

4. Family pension is applicable to the spouse and unmarried daughters.

Which of the statements given above is/are correct?

  1. 1, 3 and 4
  2. 2 and 3 only
  3. 2 only
  4. 1, 2 and 4

Answer: (b) 2 and 3 only

Statement-wise explanation

  • 1: incorrect — The entry age for PM-SYM is 18 to 40 years, not 21 to 40. PIB's release of 14 February 2019, issued when the scheme began on 15 February 2019, says the scheme has an 'entry age group of 18-40 years'. PIB repeated the same limits in March 2023 and March 2025.
  • 2: correct — The amount a subscriber pays depends on the age at which they join, and the Central Government pays an equal matching amount. A worker who joins at 18 pays ₹55 a month, one who joins at 29 pays ₹100, and one who joins at 40 pays ₹200. The subscriber keeps paying until age 60. PIB calls this a 50:50 arrangement: the beneficiary pays the age-specific contribution and the Centre matches it.
  • 3: correct — PM-SYM promises a 'minimum assured pension of Rs 3000/- per month after attaining the age of 60 years' (PIB, February 2019). The ₹3,000 a month is fixed in advance. It does not depend on how the fund performs.
  • 4: incorrect — If a pensioner dies, their spouse gets 50% of the pension as family pension. PIB's 2019 release adds that 'Family pension is applicable only to spouse.' Unmarried daughters and other dependants are not covered, so the words 'and unmarried daughters' make the statement wrong.

How to eliminate

Statements 1 and 4 each appear in only two options. Statement 1 is in options a and d. Statement 4 is also in a and d. If you know one basic fact, that these Central pension schemes for the informal sector (PM-SYM, Atal Pension Yojana, PM Kisan Maan-dhan) all take entrants aged 18 to 40, you can strike out statement 1. That removes a and d, and statement 4 goes with them, so you never have to decide it. You are left with b and c. Statement 2 is in both, so the whole question comes down to statement 3. The assured ₹3,000 a month at 60 is the scheme's headline feature, so b follows. Even with no idea about the age limit, 'spouse and unmarried daughters' should make you suspicious. It adds a specific extra group of beneficiaries, and examiners often build a wrong statement by tacking on such a group. Facts to remember: age 18–40, income up to ₹15,000 a month, ₹3,000 a month pension, family pension of 50% to the spouse only.

Know more

PM-SYM in one view

Pradhan Mantri Shram Yogi Maan-dhan was announced in the Interim Budget 2019-20 and has run since 15 February 2019. It is a voluntary, contributory pension scheme for unorganised workers such as street vendors, rickshaw pullers, domestic workers, construction workers and agricultural labourers. The Ministry of Labour and Employment administers it. LIC manages the fund, and workers enrol through Common Service Centres or the Maandhan portal.

  • Eligibility: age 18–40 and monthly income of ₹15,000 or less.
  • Who cannot join: members of EPFO, ESIC or NPS (government-funded), and income-tax payers.
  • Contribution: depends on entry age (₹55 to ₹200 a month). The Centre pays an equal amount.
  • Benefit: an assured ₹3,000 a month from age 60. The spouse gets 50% as family pension.
  • Exit before 10 years: the subscriber's own share is refunded with savings-bank interest.
  • Exit after 10 years (before 60): the subscriber's share is returned with the interest the fund actually earned or savings-bank interest, whichever is higher.
  • Permanent disability before 60: the spouse can keep paying in or exit.

In March 2023, PIB reported 49.25 lakh registrations. No subscriber had reached 60 yet, so no pension had been paid.

How it compares with similar schemes

Feature PM-SYM Atal Pension Yojana PM Kisan Maan-dhan
Target Unorganised workers, income ≤ ₹15,000/month Any citizen, non-taxpayer Small and marginal farmers
Entry age 18–40 18–40 18–40
Pension at 60 ₹3,000 fixed ₹1,000–5,000 (subscriber's choice) ₹3,000 fixed
Government share Equal matching No regular matching now Equal matching
Regulator / manager MoLE, LIC PFRDA Agriculture Ministry, LIC

PM-SYM is a mix of two designs. Like a defined contribution pension, the subscriber pays a fixed amount set by entry age. Like a defined benefit pension, the payout is fixed in advance. That assured payout is why statement 3 can say 'minimum pension'.

In the news

PM-SYM began in February 2019, so it reached five years in February 2024. Ministers' replies in Parliament through 2023 kept reporting its enrolment figures (49.25 lakh registrations as of March 2023). Most statements in the question are close paraphrases of PIB's 2019 release on the scheme's features.

NCERT Concepts to Revise

  • Defined benefit pension: Statement 3 asks whether the pension amount is fixed in advance, which is the defining trait of a defined benefit pension.
  • Defined contribution pension: Statement 2 is about how much the subscriber pays in, which is the contribution side of a pension design.
  • National Pension System: People already covered by NPS cannot join PM-SYM, so you need to know what NPS is.
  • Landless agricultural labourers: Landless agricultural labourers are a core target group of PM-SYM, which is for low-income unorganised workers.

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