Indian PM announces new pension scheme for overseas Indians

Indian Prime Minister Manmohan Singh has announced a new pension and life insurance scheme for overseas Indian workers that would allow over five 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), Singh said that the scheme would encourage the overseas workers to voluntarily save money for their resettlement and old age.

Singh says that the scheme, which was recently cleared by the Cabinet, would also provide a low-cost life insurance cover against natural death.

According to the Indian media, under the scheme, the Government will co-contribute INR 1,000 (US$ 19.38) per year for all subscribers who contribute between INR 1,000 and INR 12,000 per year. Female overseas workers will enjoy a special additional co-contribution of INR 1,000 a year.