MAHATMA GANDHI PRAVASI SURAKSHA YOJANA (MGPSY)

 

MAHATMA GANDHI PRAVASI SURAKSHA YOJANA (MGPSY)

Ministry of Overseas Indian Affairs has introduced a Pension and Life Insurance fund scheme called Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) for the Overseas Indian workers having Emigration Check Required (ECR) passports.

The objective of MGPSY is to encourage and enable the overseas Indian workers by giving government contribution to:

· Save for their Return and Resettlement (R&R)

· Save for their old age,

· Obtain a Life Insurance cover against natural death during the period of coverage.

The government contribution available under the MGPSY is for a period of five years or till the return of subscribed worker back to India, whichever is earlier.

The main attractions of MGPSY are:

· Government contribution of Rs.1,000 per annum in line with Swavalamban platform for all MGPSY subscriber who save between Rs.1,000 and Rs.12,000 per year in NPS-Lite.

· An additional government contribution of Rs.1,000 per annum by MOIA for the overseas Indian women workers who save between Rs.1,000 to Rs.12,000 per year in NPS-Lite.

· A special government contribution of Rs.900 by MOIA towards Return and Resettlement (R&R) of the overseas Indian workers who save Rs.4,000 or more per annum.

Pension Account NPS Lite  Intermediary

Charge Head

Service charges

Service Provider

Customer Service

No Charge

CRA

PRA Opening charges

Rs. 35 (one-time payment)

Annual PRA Maintenance

cost per account

Rs. 70 per annum

Charge per transaction

Rs. 5(first 12 transaction P.A. free)

Trustee Bank

Per transaction emanating from a non-RBI location

Rs. 15

Custodian

Asset Servicing charges

0.0075% p.a for Electronic segment & 0.05% p.a. for Physical segment

R&R Savings – UTI MIS Scheme Entry Load (As % of NAV)

Nil

 

Annual recurring expenses                               

Total recurring expenditure as % to daily average NAV

Total Management Fees as % to Daily Average NAV

1.80%

0.9 %

 

Exit Load (As % of NAV)

<= 90 days

1.50%

 

> 90 days &<= 180 days

1.25%

 

> 180 days &<= 365 days

1.00%

 

> 365 days

 

               

Insurance cover is provided by LIC

 

Benefits and Government Co Contribution in MGPSY

In order to encourage subscribers to participate and take benefit from the scheme, MOIA has notified to co-contribute in the scheme to support subscriber. The Government Co-contributions under MGPSY are:

Rs.1,000 per annum per subscriber by MOIA in line with Swavalamban platform for all the subscribers who save between Rs.1,000 and Rs.12,000 per year in their NPS-Lite account

 

An additional co-contribution of Rs.1,000 per annum by MOIA has been proposed for overseas Indian women workers who save between Rs.1,000 and Rs.12,000 per annum in NPS-Lite

An annual co-contribution of Rs 900 per annum by MOIA to each eligible subscriber who save  at least Rs 4000 per annum towards Return and Resettlement

Life insurance cover will be provided to overseas Indian workers who join as subscribers under the MGPSY so that the families of these workers receive a reasonable compensation in case of uneventful death or disability of the wage earner.

Co Contribution from MOIA under NPS and R and R will be discontinued after 5 years or on subscribers return to India whichever is earlier. However subscriber may still get Rs 1000 as Co Contribution from Ministry of Finance under the existing Swavalamban scheme in NPS lite subjected to his fulfilling the laid down eligibility criteria.

Note : Please note that, there is no guaranteed return, the members will receive only market related returns.    I am not sure whether this welfare scheme will fully take care the needs of blue color   NRI workers.   The rules related to this welfare scheme is subject to change 

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HARISH KUMAR
Posted On : 02-11-2013
am intrested and let me know the plannings, am a private employee.
Site Admin
Posted On : 02-11-2013
All details are there in the attachment. Please read
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