Atal Pension Yojana
Atal Pension Yojana (APY) - Details of the Scheme
1. Introduction
In order to move towards creating a universal social security system for all Indians, especially the poor and the
underprivileged, the Government, in the Budget for 2015-16, announced three Social Security Schemes pertaining to the
Insurance and Pension Sectors. In this direction, the Atal Pension Yojana was launched on 9th May 2015.The Scheme is
being implemented with effect from 1st June 2015.
2. Benefits of APY
2.1 APY is a voluntary, periodic contribution-based pension system, under which the subscriber would receive the following
benefits:
(i) Central Government guaranteed minimum pension amount:
Each subscriber under APY shall receive a Central Government guaranteed minimum pension of Rs. 1000 per
month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month, after the age of
60 years until death;
(ii) Central Government guaranteed minimum pension amount to the spouse:
After the subscriber’s demise, the spouse of the subscriber shall be entitled to receive the same pension amount
as that of the subscriber until the death of the spouse;
(iii) Return of the pension wealth to the nominee of the subscriber:
After the demise of both, the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive
the pension wealth, as accumulated till the age of 60 years of the subscriber.
2.2 Upon the death of the subscriber (before the age of 60 years), the spouse of the subscriber has the option to continue
contributing to the APY account of the subscriber for the remaining vesting period till the original subscriber would have
attained the age of 60 years. The spouse of the subscriber shall then be entitled to receive the same pension amount as that
of the subscriber until the death of the spouse. After the death of both, the subscriber and the spouse, the nominee of the
subscriber shall be entitled to receive the pension wealth, as accumulated till the age of 60 years of the subscriber. The
minimum pension is guaranteed by the Government, i.e., if the accumulated corpus based on contributions earns a lowerthan-estimated return on investment and is inadequate to provide the minimum guaranteed pension, the Central Government
would fund such inadequacy. Alternatively, if the returns on investment are higher, the subscribers would get enhanced
pensionary benefits.
3. Eligibility for APY
APY is open to all citizens of India who have a savings bank account. The minimum age of joining APY is 18 years and
maximum age is 40 years.
From 1st October, 2022, any citizen who is or has been an income-tax payer, is not eligible to join APY.
4. Age of joining and contribution payment by subscribers
The minimum age of joining PY is 18 year and maximum is 40 years. The age of exit and start of pension is 60 years.
The subscriber’s contributions to APY shall be made through the facility of ‘auto-debit’ of the prescribed contribution amount
from the savings bank account of the subscriber in monthly, quarterly or half-yearly frequency. The subscribers are required
to contribute the prescribed contribution amount from the age of joining APY till the age of 60 years. The details of age-wise,
pension-wise and contribution-frequency-wise prescribed contribution amount and the indicative pension wealth available for
the nominee is given in the table at Annex – 1.
5. Exit, withdrawal and pension payment
5.1 On completion of 60 years, the subscriber will get the guaranteed minimum monthly pension, or higher monthly pension,
depending on the investment returns. In exceptional circumstances, i.e., in the event of the death of beneficiary or specified
illnesses, as mentioned in the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National
Pension System) Regulations, 2015, before the age of 60 years, the accumulated pension wealth till date would be given to
the nominee or the subscriber, as the case may be. In case a subscriber, who has availed Government co-contribution under
APY, chooses to voluntarily exit APY before the age 60, he shall only be refunded the contributions made by him to APY,
along with the net actual interest earned on his contributions (after deducting the account maintenance charges), whereas,
the Government co-contribution, and the interest earned on the Government co-contribution, shall not be returned to such
subscribers.
5.2 In case a subscriber, who joined on or after 1st October, 2022, is subsequently found to have been an income-tax payer
on or before the date of application, the APY account shall be closed and the accumulated pension wealth till date would be
given to the subscriber.
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