Kerala to implement expat pension scheme
One-time deposit locked in for three years will earn monthly income for life ranging from Rs5,416-Rs54,166
The government of the South Indian state of Kerala will soon implement a lifelong monthly dividend-cum-pension scheme based on a one-time deposit for millions of Non-Resident Keralites (NRKs) living across the globe, a senior official told Gulf News yesterday.
“The government issued an order last week, accepting the proposal in principle,” said P.T. Kunhi Mohammad, chairman of the Kerala Nonresident Keralites Welfare Board, a government agency implementing welfare and pension schemes for an estimated 3.5 million NRKs across the globe, including over a million in the UAE.
“I hope that everything will be ready within a month and Kerala Chief Minister Pinarayi Vijayan will unveil the scheme soon in Dubai for NRKs in the Gulf and in Mumbai for NRKs living in other India states,” Mohammad said on phone from Kerala.
As Gulf News exclusively reported on August 7, 2017, the ‘Dividend and Pension Scheme’ targeting middleclass NRKs aims to offer them an investment vehicle to secure their future, even if they lose their livelihood.
Six instalments
The scheme envisages collecting a one-time deposit of between Rs500,000 (Dh25,013) and Rs5 million (Dh250,232) from NRKs, which could also be paid in six instalments in three years. After an initial threeyear lock-in period, the deposit will start yielding a fixed monthly dividend between Rs5416 (Dh271) and Rs54,166 (Dh2,711), depending on the deposit, until the investor’s death.
The scheme will be able to ensure such a high return (12 per cent) as the deposit will be locked in during the lifetime of the depositor.
This means the government gets the deposit for a long time, probably 20 to 40 years, to utilise it for development projects through official arms such as KIIFB (Kerala Infrastructure Investment Fund Board. “Even if just 10 per cent of NRKs join the scheme, it can attract at least Rs500 million (Dh25 million),” the chairman said.