PM-KMY

PM-KMY stands for Pradhan Mantri Kisan Maandhan Yojana, a pension scheme for small and marginal farmers launched in September 2019. It provides a minimum monthly pension of Rs 3,000 after the age of 60 to eligible farmers who contribute a small amount each month during their working years.

What Is PM-KMY?

PM-KMY is a voluntary and contributory pension scheme for small and marginal farmers whose cultivable land holding does not exceed 2 hectares. The scheme is implemented by the Life Insurance Corporation of India (LIC) and funded jointly by the farmer’s monthly contribution and a matching contribution from the central government.

How PM-KMY Works

Farmers aged 18 to 40 years enroll and begin making monthly contributions. The monthly contribution depends on the age of enrollment:

| Entry Age | Monthly Contribution |
|———–|———————|
| 18 years | Rs 55 per month |
| 25 years | Rs 80 per month |
| 30 years | Rs 110 per month |
| 40 years | Rs 200 per month |

The central government matches the farmer’s contribution with an equal amount deposited to the pension fund. When the farmer turns 60, they receive Rs 3,000 per month as pension.

Eligibility

– Small and marginal farmers with cultivable land up to 2 hectares
– Aged 18 to 40 years at the time of enrollment
– Must have a savings bank account and Aadhaar card
– Farmers who benefit from PM-KISAN can opt to auto-debit their PM-KMY contribution from the PM-KISAN instalment

Benefits

– Monthly pension of Rs 3,000 at age 60
– If the farmer dies after 60, the spouse receives Rs 1,500 per month as family pension
– If the farmer exits before 60, the contributions plus bank savings interest are returned

Practical Example

Gopal, a 30-year-old farmer with 1.5 hectares, enrolls in PM-KMY and contributes Rs 110 per month. The government also contributes Rs 110 per month to his account. When he turns 60, he receives Rs 3,000 per month as pension for the rest of his life. His wife, if she survives him, gets Rs 1,500 per month.

Key Takeaways

– PM-KMY provides Rs 3,000 monthly pension to small and marginal farmers after age 60
– Contributions range from Rs 55 to Rs 200 per month depending on entry age; government matches it
– Eligible for farmers with up to 2 hectares of cultivable land, aged 18 to 40 at enrollment
– Spouse receives Rs 1,500 per month family pension if the farmer dies after 60
– PM-KISAN beneficiaries can opt for automatic PM-KMY contribution from their PM-KISAN instalments