Pravasi Pension Scheme for NRIs: Eligibility and Application Procedure

The Kerala Pravasi Pension Scheme is a retirement program for s launched by the state government of Kerala. To ensure financial security for Non-Resident Keralites (NRKs), the Kerala Pravasi Welfare Board manages this program. It also includes those living in foreign countries (NRIs) and other parts of India. The primary objective of designing this scheme is to assist individuals who work overseas for their retirement when they return to Kerala. 

Want to know more about the Pravasi Pension Scheme for NRIs? The blog consists of all the information related to the scheme, from its features to eligibility criteria and application process. So, read on and get your answers. 

What Is the Kerala Pravasi Pension Scheme?

Kerala Pravasi Pension Scheme (PPS) is a pension plan that provides financial security to NRKs and NRIs who plan to move back to Kerala or other Indian states after returning from overseas. The scheme also applies to NRKs who have moved to the state for permanent residence after staying a minimum of two years in a foreign country.

In 2008, the Kerala Non-Resident Welfare Act was passed by the state government of Kerala. In April 2018, the scheme was launched by Chief Minister Pinaryai Vijayan. Subsequently, the Pravasi Welfare Fund and the Kerala Pravasi Welfare Board were formed to offer several welfare schemes. It includes the Pravasi Pension Schemes for NRKs, family members, individuals, and invalids requiring medical help, among others. 

Kerala has a huge population of NRI (Non-Resident Indian) working overseas. Among them, the majority of the people are from the lower or middle income group, who move out of India in search of employment. However, most of them are engaged in unorganized or unregulated sectors. Considering this, they do not get employment benefits like a pension. Further, to provide a stable post-retirement financial benefit to the NRIs, the government of Kerala designed the Kerala Pension Scheme. 

This was all about the Kerala Pravasi Pension Scheme. Moving ahead, let's know about the features of the scheme. 

Features of the Kerala Pravasi Pension Scheme

The Pravasi Pension Scheme aims to provide welfare benefits and a monthly pension to the NRKs and NRIs. Considering this, the key features of the scheme are:

• Chief Minister of Kerala, Pinarayi Vijayan, launched the Pravasi Pension Scheme in April 2018.
• The beneficiaries of the scheme include NRKs, NRIs, and their families.
• The minimum contribution period of the scheme is 5 years.
• After the age of 60 years, the contributing members of the scheme start getting the applicable pension amount.
• The minimum monthly pension amount that contributing members get after the age of retirement is INR 3500 for the 1A category and INR 3000 for the 1B and 2A categories. It is the amount they received in return for the constant contribution towers the Welfare Fund till the age of 60 years.
• Further, members of the Kerala Pravasi Pension Scheme who contribute for more than 5 consecutive years receive an additional 3% of the minimum pension amount, i.e., INR 3500 every year after 5 years of completion.
• The minimum monthly contribution amount for NRKs overseas is INR 300, and for NRKs in India is INR 100.
• In case you do not make any contribution for the whole year, your membership will be cancelled.
• Additionally, the employees of the Central and State governments cannot avail the Pravasi Pension Scheme.

These were the key features of the Kerala Pravasi Pension Scheme. Moving further, let's know the eligibility criteria of the scheme. 

Eligibility Criteria for Kerala Pravasi Pension Scheme

To qualify for the Kerala Pravasi Pension Scheme, you need to meet the following eligibility criteria:

So, this was all about the eligibility criteria for the Kerala Pravasi Pension Scheme. Moving ahead, now let's know the application procedure of the scheme. 

Application Procedure for Kerala Pravasi Pension Scheme

Before moving to the application procedure, eligible individuals, as per their category, need to fill out specific forms. These are as follows:

• Form 1A: For Non-Resident Keralites (NRKs) working abroad currently.
• Form 1B: For NRKs who have permanently returned to Kerala after working overseas for a minimum of two years.
• Form 2A: For NRKs working within India, but outside Kerala.

Once you have identified your category, you can apply for the Kerala Pravasi Pension Scheme online using the following steps:

• Step 1: Visit the official site of the Kerala Pravasi Welfare Board.
• Step 2: Click on the "Services" option.
• Step 3: Click on the online registration process and select the "Online Apply" tab.
• Step 4: You will move to the application form page of the pension scheme.
• Step 5: According to your form category, select the registration type.
• Step 6: Mention your name, gender, age, address, and other basic details.
• Step 7: Scan and upload the self-attested documents with your photograph and a digital signature.
• Step 8: Submit the digital photocopies of your valid Visa Passport.
• Step 9: Pay the applicable monthly fee needed to register with the Pravasi Welfare Fund/ Pravasi Kshemanidhi.
• Step 10: Once you make the payment, click on the "submit" option. Also, note down your application number.

Upon verification of your documents, your registration process will be successful. Within 15 business days of your registration, you will receive your Member ID for Pravasi Welfare Board.

Further, this is how you can register yourself for the Pravasi Pension Scheme online. Now, moving further, let's know the scenarios under which the scheme benefits can be claimed. 

Scenarios Under Which the Pravasi Welfare Fund Benefits Can be Claimed

The several scenarios under which you can claim the Pravasi Welfare Fund benefits are as follows:

• Pravasi Pension Scheme: As mentioned above, you receive the pension amount when you turn 60. The amount of pension depends on the contributions you made. However, the minimum monthly amount is INR 2000 per month. Further, if you constantly contribute to the scheme for more than 5 years, you receive an additional 3% of the applicable pension or INR 4000, whichever is lower. 
• Pravasi Family Pension Scheme: If the eligible to get the pension passes away, then the applicable amount based on the cause of death, mode of pension payment, and registration type will be paid to the nominee.
• Payment Scheme for Medical Aid: If an enrolled member is diagnosed with a critical illness, they can get up to INR 50,000 from the welfare fund. However, they should get the benefits under any other welfare schemes of the central and local government.
• Financial Assistance for Marriage: An enrolled member who has consistently contributed for 3 or more consecutive years can get up to INR 10,000 twice as financial assistance for his/her daughter's marriage. However, under the scheme, if multiple members of the family are enrolled, only one member can receive the benefit.
• Payment of Financial Assistance for Maternity: An eligible female member contributing for a minimum of 2 years will receive financial assistance for her maternity expenses, as well as for abortion. 

These were some scenarios under which you can claim the Pravasi Welfare Fund benefits. 

Final Thoughts

Lastly, the Kerala Pravasi Pension Scheme offers financial security to NRIs and NRKs in their later retirement years. Like other retirement plans, by contributing a small monthly amount, you can establish a steady pension that further helps you in your retirement planning. This scheme aims to provide a sense of financial stability and dignity to expatriates. 

Furthermore, being an NRI, if you are facing issues in choosing the right retirement plan in India, connect with Savetaxs. We have a team of financial advisors who can assist in selecting the right retirement plan as per your financial goals and preferences.