New pension scheme for NRIs

Fulfilling a long-standing demand, Prime Minister Manmohan Singh on Sunday announced a new pension and life insurance scheme for overseas Indian workers that will allow over 5 million workers, especially those working in the Gulf, to save money for the future.

Announcing the Government’s decision to introduce and sponsor the Pension and Life Insurance Fund (PLIF) at the 10th Pravasi Bharatiya Divas in Jaipur, Singh said the scheme will encourage the overseas workers to voluntarily save money for their resettlement and old age.

"I am happy to inform you that the government has decided to introduce and sponsor a new Pension and Life Insurance Fund for overseas Indian workers.

"The scheme will encourage, enable and assist overseas workers to voluntarily save for their return and resettlement and old age," Singh said in his address that was heard with rapt attention by over 1,900 delegates from 60 countries.

Singh said the scheme, which was recently cleared by the cabinet, will also provide a low-cost life insurance cover against natural death.

"This scheme fulfills a long-pending demand of our workers abroad," he said.
Under the scheme, the government will co-contribute Rs 1,000 per annum for all subscribers who contribute between Rs 1,000 and Rs 12,000 per year. Women overseas workers will enjoy a special additional co- contribution of Rs 1000 a year.

Referring to his Government's decision to allow Non-Resident Indians to vote in elections, he said pursuant to the law in this regard the Government has issued notifications for registration of overseas Indians under the Representation of People Act, 1950.