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Atal Pension Yojana
1. Atal Pension Yojana (APY) is open to all bank account holders. The Central Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber, for a period of 5 years, i.e., from Financial Year 2015-16 to 2019-20, who join the APY before 31st December, 2015, and who are not members of any statutory social security scheme and who are not income tax payers. Therefore, APY will be focussed on all citizens in the unorganised sector.
2. Under APY, the monthly pension would be available to the subscriber, and after him to his spouse and after their death, the pension corpus, as accumulated at age 60 of the subscriber, would be returned to the nominee of the subscriber.
3. Under the APY, the subscribers would receive the fixed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY. Therefore, the benefit of minimum pension would be guaranteed by the Government. However, if higher investment returns are received on the contributions of subscribers of APY, higher pension would be paid to the subscribers.
4. A subscriber joining the scheme of Rs. 1,000 monthly pension at the age of 18 years would be required to contribute Rs. 42 per month. However, if he joins at age 40, he has to contribute Rs. 291 per month. Similarly, a subscriber joining the scheme of Rs. 5,000 monthly pension at the age of 18 years would be required to contribute Rs. 210 per month. However, if he joins at age 40, he has to contribute Rs. 1,454 per month. Therefore, it is better to join early in the Scheme. The contribution levels, the age of entry and the pension amounts are available in a table given in frequently asked questions (FAQs) on APY, which is available on www.jansuraksha.gov.in.
5. The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by any subscriber under APY would be 20 years or more.
Key points: Atal Pension Yojana
• FM announced Atal Pension Yojana in Budget Speech for 2015-2016
• This Yojana will be focused on citizens in the unorganised sector joining the scheme
• APY is administered by the PFRDA (Pension Fund Regulatory and Development Authority)
• The scheme is also open to those who lack membership of statutory social schemes
• Under the Yojana, subscribers will get fixed pension of INR 1000/2000/3000/4000/5000 per month depending upon contributions at the age of 60
• Contributions will vary depending upon the age at which APY is joined
• Minimum age at which APY can be joined is 18 years; maximum is 40
• Minimum contribution period under a subscriber will be 20 years or more
• Benefit of fixed pension to be guaranteed by the GoI
• Centre will co-contribute 50% of the contribution of subscribers or INR 1000 (depending upon which sum is lower) for a duration of 5 years (2015-2016 to 2019-2020) who had joined NPS prior to 31st December 2015
• Subscribers should also not be income tax payers
• Scheme will be launched from June 1st, 2015
• Unless opting out, existing subscribers of Swavalamban scheme will automatically migrate to APY
• Contribution levels will vary depending upon how early/late subscribers join
• This Yojana is open to all bank account holders that are not members of any statutory social scheme
• All bank account holders under the category which is eligible may join APY with auto-debit facility to accounts linked to reduction in contribution collection charges
• Through the means of the National Pension Scheme, Points of Presence (Service Providers) and Aggregators under the Swavalamban Scheme will enroll subscribers
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