Under Pradhan Mantri Kisan Pension Yojana that seeks to provide minimum fixed monthly pension of Rs 3,000 on attainment of 60 years, farmers will have to contribute Rs 100 per month, said a government statement, adding that the central government will also contribute an equal amount to the pension fund. Notably, the fund will be managed by the LIC, which will be responsible for the pension payout.

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The PM-Kisan Yojna is an income support scheme for farmers. The 100% central sector scheme will give farmers Rs 6000/- per year in 3 equal instalments. From April 1, 2019, the scheme has been extended to cover all farmers, the total beneficiaries will be 14.5 crores. The government has stressed that there should be 100% enlistment of eligible beneficiaries by states/UT’s, timely uploading of corrected data on PM-Kisan portal and establishment of proper redressal Mechanism.

The pension scheme for small and marginal farmers will provide a social security net for all such farmers. Under this scheme a minimum fixed pension of Rs 3000 per month will be provided to the eligible small and marginal farmers subject to certain exclusion causes on attaining the age of 60 years. 

The scheme will be a voluntary and contributory pension scheme with entry age of 18 to 40 years. The beneficiary can opt to become member of the scheme by subscribing to a pension fund. 

Notably, the Modi 2.0 government in its first cabinet meeting had approved a separate pension scheme for farmers with an aim to cover 5 crore beneficiaries in the first three years, which would cost the exchequer Rs 10,774.5 crore per annum.

Discussing the new scheme with state agriculture ministers through a video conference today, Union Agriculture Minister Narendra Singh Tomar urged all states and union territories to roll out the programme at the earliest.

Under the PM-Kisan Pension, Tomar said, "The beneficiary would be required to contribute Rs 100 per month at median entry age of 29 years."

According to the statement, contribution shall be made to a Pension Fund managed by the LIC which will be responsible for the pension pay out. Under the scheme farmers can also opt to allow contribution to be made directly from the benefits drawn from the PM-KISAN scheme. There will be an online grievance redressal system for complete transparency.