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ARTICLE : Pension and Life Insurance Fund Scheme for NRIs
Tuesday, 05 June 2012 02:59

Pension and Life Insurance Fund Scheme for NRIs

The Government has approved the Pension and Life Insurance Fund (PLIF) for Overseas Indian workers having Emigration Check Required passports in January, 2012.  The objective of PLIF scheme is to encourage and enable overseas Indian workers by giving co-contribution to

(a) save for their return and resettlement,

(b) save for their old age

(c) obtain a low cost Life Insurance cover against natural death during the period of coverage.

Overseas Indian workers with emigration check required (ECR) passports and aged between 18 and 50 years who are emigrating overseas or have already emigrated overseas on an employment/contract visa are eligible to join the PLIF scheme. The scheme will benefit overseas Indian workers with ECR passports in ECR countries.

These countries are







Saudi Arabia,









United Arab Emirates and


Overseas Indian workers will be able to withdraw their accumulated Return and Resettlement savings as a lump sum upon their return to India.  The savings of PLIF subscribers in National Pension System (NPS)-Lite shall remain invested in a PFRDA regulated pension fund and shall be returned to them when they reach the age of 60 years in the form of pension as per PFRDA rules. The Lump sum Return and Resettlement withdrawals as well as pension benefits through NPS-Lite shall be paid into the bank account of each individual PLIF subscriber. The workers would also be given life insurance cover against natural death during the period of coverage.    The co-contribution by Government available under the PLIF scheme for a period of five years or till the return of workers to India, whichever is earlier, are:

a) A  co-contribution of Rs.1000 per annum in line with Swavalamban platform for all PLIF subscribers who save between Rs.1000 and Rs.12000 per year in NPS-Lite;

b) An additional co-contribution of Rs.1000 per annum by MOIA for overseas Indian women workers who save between Rs.1000 and Rs.12000 per annum in NPS-Lite;

c) A special Return and Resettlement co-contribution of Rs.1000 by MOIA to overseas Indian workers who save Rs.4000 per annum towards Return and Resettlement.

This scheme is implemented using the Pension Fund Regulatory and Development Authority (PFRDA), Security and Exchange Board of India (SEBI), and Insurance Regulatory and Development Authority (IRDA) regulated products as per their institutional architecture. There will be an integrated enrolment process for the subscribers who will be issued a unique PLIF Account number upon enrolment. On their return to India, the subscriber can withdraw the Return and Resettlement savings as a lump sum. However, the subscriber would be able to continue savings for their old age in NPS-Lite and the same shall remain invested with a PFRDA regulated pension fund. The PLIF subscriber can withdraw pension corpus as per the guidelines prescribed by the PFRDA.


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