The Pravasi Pension Scheme is an initiative by the state government of Kerala to support non-resident Kerala natives (NRKs) during their retirement. It is common for Keralites to move abroad for jobs and other employment opportunities. However, while foreign jobs take care of their present needs, their future can be a cause of concern. Taking care of financial matters after retirement can be challenging. The Pravasi Pension Scheme aims to address these concerns and help NRKs get financial support during their golden years and more.
Understanding the Pravasi Pension Scheme – Key Features
The Pravasi Pension Scheme is a part of the broader welfare program administered by the Kerala Pravasi Welfare Board.
Offering a structured retirement plan for workers from unorganised sectors who lack the usual employee retirement benefits, the Pravasi Pension Plan is a state government-backed option for them to create retirement security.
It provides a regular income to NRKs after retirement, provided they contribute to the Pravasi Welfare Fund for a specified number of years. The guaranteed pension plan provides a monthly pension beginning at ₹2,000 once the member turns 60. This applies only if they contributed regularly for at least five years.
For members who contribute for more than five years, an additional 3% of the minimum pension amount is added for each extra year. The minimum contribution is ₹300 per month for NRKs abroad and ₹100 for those in India. However, if a member fails to contribute for a full year, it can lead to cancellation of the membership.
Eligibility and Documentation for the Pravasi Pension Scheme
To be eligible for the Pravasi Pension Scheme, the applicant must be:
- An NRK aged between 19 and 60 years of age
- Employed abroad, returned after working overseas for at least two years, or working outside Kerala but within India.
Central and State Government employees are not eligible for this scheme.
To apply for the Pravasi Pension Scheme, you are required to provide the following documents:
- Form 1A - For NRKs working abroad
- Form 1B - For NRKs returned from abroad
- Form 2A - For NRKs working in other Indian states
- Identity Proof (Aadhaar card, Voter ID, birth certificate)
- Address Proof
- Passport-size photo
- Digital signature
- Valid passport and visa
How to Register for the Pravasi Pension Scheme Online?
You can easily enjoy the benefits of the Pravasi Pension Plan by registering online. Here’s how you can get started.
Step 1. Visit the official Pravasi Kerala Welfare Board website.
Step 2. Click on the 'Online Services' menu and select ‘Online Registration.
Step 3. Choose the correct registration form: 1A, 1B, or 2A.
Step 4. Fill in your details: name, gender, address, contact info, and date of birth.
Step 5. Upload the required (self-attested) documents and your digital signature.
Step 6. Make the Pravasi pension online payment as the initial contribution.
Step 7. Submit the application and note down the application number.
Step 8. You will receive your member ID within 15 working days after the documents are verified and the registration is complete.
Once your account is created, you can use the Pravasi Welfare login feature to access services and manage your account.
Other Benefits of the Kerala Pravasi Welfare Board
Beyond the pension welfare payment, the Kerala Pravasi Welfare Board or the Pravasi Kshemanidhi offers a wide range of additional benefits to ensure better security and support for its members.
Family Pension Scheme
If a member passes away after becoming eligible for pension, their family receives 50% of the applicable monthly pension as Pravasi welfare pension support.
Disability Pension
Members who suffer from a permanent disability and have contributed for at least three years are eligible for 40% of the Pravasi welfare payment amount as a monthly pension.
Medical Assistance
The Pravasi Welfare Board offers financial aid of up to ₹50,000 for medical treatment during the membership period. Members must submit treatment bills and doctor's certificates for reimbursement.
Wedding Assistance
Up to ₹10,000 is available for the marriage of daughters or female members, provided at least three years of continuous contributions have been made. This benefit is available only twice and not for pensioners.
Educational Grants
Children of contributing members (minimum of two years) are eligible for up to ₹4,000 in educational support, depending on their academic course, under the Pravasi Welfare Fund.
Maternity Benefits
Female members who have contributed for at least a year receive ₹10,000 for childbirth. This benefit from the Pravasi welfare fund is limited and not available more than twice.
Death Benefits
Financial assistance of ₹20,000 to ₹50,000 is provided to dependents of deceased members, depending on the member’s category and residency status.
Housing Loan Support
Members can avail of a 5% government loan subsidy on housing loans up to ₹20 lakhs. This benefit from the Pravasi Welfare Fund can help create a stable living condition for members and their families.
By offering these benefits, the Pravasi Welfare Fund or the Pravasi Kshemanidhi can ensure full-fledged security for its members.
Importance of Private Pension Plans
- While the Pravasi Welfare Pension Scheme offers a reliable base-level pension and welfare benefits, it may not be enough to cover all post-retirement needs, especially given rising living costs. Thus, it might be helpful to consider supplementing it with private pension plans.
- Mainly offered by insurance companies, these plans allow you to save and invest with the goal of building a solid retirement corpus. Many of these come with flexible contribution options, life cover, and even lump sum benefits.
- You can pay the premiums at a mode of your choice, whether it be monthly, quarterly, half-yearly, or yearly. Similarly, you also have the option to decide whether you want to receive your benefits via a commuted pension, i.e., a lump sum, or via regular payouts.
- You can use tools like a pension calculator to help estimate how much you will need in retirement. This can help you identify the gap between what you will receive from the Pravasi Welfare Pension plan and your actual financial requirements.
The Pravasi Pension Scheme is a significant step toward ensuring financial security for Keralites working outside the state. It can support NRKs at different stages of life, whether it’s marriage, healthcare issues, education, or retirement. While the Pravasi Pension Scheme provides a solid starting point for retirement income, adding private pension plans to your retirement planning can offer greater financial stability in your later years.
Customers 
Distributor 
Partner with Us 
Employee 
