Learning Phase: What is APY Atal pension Yojna?

What is APY Atal pension Yojna?

The Government of India is concerned about the old age income security of the working poor and is focused on encouraging and enabling them to join the National Pension System (NPS).

The APY will be focused on all citizens in the unorganized sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA). 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. The minimum age of joining APY is 18 years and maximum age is 40 years. The benefit of fixed minimum pension would be guaranteed by the Government. The APY would be introduced from 1st June, 2015.

The Central Government would also co-contribute 50 percent of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, that is, from 2015-16 to 2019-20, to those who join the NPS before 31st December, 2015 and who are not members of any statutory social security scheme and who are not Income Tax payers. The pension would also be available to the spouse on the death of the subscriber and thereafter, the pension corpus would be returned to the nominee.

There are some key points:-

	APY
Fixed minimum pension	of Rs. 1000 per month
Fixed Maximum pension	of Rs. 5000 per month
Age Limit	18 to 40 years
Eligibility	Atal Pension Yojana (APY) is open to all bank account holders
Focus on	All citizens in the unorganized sector.
Payment Mode	Directly auto-debited by the bank from the subscribers account monthly basis.
Exit and pension payment	Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed monthly pension.

Some Additional Notes:-

Existing Swavalamban Scheme subscriber, if eligible, may be automatically migrated to APY with an option to opt out. However, the benefit of five years of government Co-contribution under APY would not exceed 5 years for all subscribers

There have different contribution for different age and pension amount.

Monthly Pension

Rs.1000 and Return of Corpus to the nominee 1.7 Lakh

Rs.2000 and Return of Corpus to the nominee

3.4 Lakh

Rs.3000 and Return of Corpus to the nominee 5.1 Lakh

Rs.4000 and Return of Corpus to the nominee 6.8 Lakh

Rs.5000 and Return of Corpus to the nominee 8.5 Lakh

Age of

Joining

Years of Contribution