Nod to pension fund for overseas Indian workers

 Ashok Tuteja
Tribune News Service

New Delhi, April 1
The government has approved a Pension and Life Insurance Fund (PLIF) for overseas Indian workers in Emigration Check Required (ECR) countries in line with its social security initiatives.

The fund will take effect during financial year 2012-13.

The scheme would provide overseas Indian workers the opportunity to voluntarily save for their return and resettlement, save for their old age and obtain a low-cost life insurance against natural death.

The scheme would be implemented using the Pension Fund Regulatory and Development Authority, Security and Exchange Board of India, and Insurance Regulatory and Development Authority regulated products and institutional architecture.

There would be an integrated enrolment process for the subscribers.

The subscribers would be issued a unique PLIF account number upon enrolment and a bank account would be opened for each subscriber upon enrolment.

Savings of such overseas Indian workers will be channelled to designated fund managers through their bank accounts.

On return to India, PLIF subscribers would be able to continue saving for their old age using their bank account.

As regards return and resettlement savings, these would be withdrawn as a lumpsum upon the subscriber’s return to India.

However, savings from the pension will remain invested with a PFRDA-regulated pension fund.

Part of the retirement savings will be returned as lumpsum and the remaining savings would be converted into a monthly pension.

All withdrawals will be paid into bank account of the individual PLIF subscriber.

The benefits available under the scheme would include a government co-contribution of Rs 1,000 per annum for all PLIF subscribers who save between Rs 1,000 and Rs 12,000 per year, a special additional co-contribution of Rs 1,000 per annum by the Overseas Indian Affairs Ministry for overseas Indian women workers who save between Rs 1,000 and Rs 12,000 per annum, and a special return and resettlement co-contribution of Rs 1,000 by the ministry to overseas Indian workers who save Rs 4,000 per annum towards return and resettlement.
HOW IT WILL WORK
n Subscribers would get a unique PLIF account number upon enrolment
n A bank account would be opened for each individual subscriber
n Savings of such overseas Indian workers will be channelled to designated fund managers through their bank accounts
n On return to India, PLIF subscribers would be able to go on saving using their account

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