Atal Pension Yojna: A to Z


Kolkata: Prime Minister Narendra Modi on Saturday launched three social sector schemes. One of the schemes is ‘Atal Pension Yojna’ (APY). The above mentioned schemes launched by the PM basically focusing on marginal rural people and unorganized urban-suburban sector of the country.
Here are the key facts of the scheme:

Benefit of APY: Fixed pension for the subscribers ranging between Rs. 1000 to Rs. 5000. Anybody can join and contribute his/her premium from the age of 18 years upto 40 years. The contribution levels would vary according to his/her age. If the policy holder is young one, his/her premium will be low.

Eligibility for APY: Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme.

Age of joining and contribution period: The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by the subscriber under APY would be for 20 years or more.

Focus of APY: Mainly targeted at unorganized sector workers.

Enrollment and Subscriber Payment: All bank account holders under the eligible category may join APY with auto-debit facility to accounts, leading to reduction in contribution collection charges.

Enrollment agencies: All Points of Presence (Service Providers) and Aggregators under Swavalamban Scheme would enroll subscribers through architecture of National Pension System.

Operational Framework of APY: It is Government of India Scheme, which is administered by the Pension Fund Regulatory and Development Authority. The Institutional Architecture of NPS would be utilized to enroll subscribers under APY.

Launching: The APY would be launched from 1st June, 2015. The existing subscribers of Swavalamban Scheme would be automatically migrated to APY, unless they opt out.

Funding of APY: The benefit of fixed pension would be guaranteed by the Government. Government would provide (i) fixed pension guarantee for the subscribers; (ii) would co-contribute 50% of the subscriber contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, i.e., from 2015-16 to 2019-20, who join the NPS before 31st December, 2015 and who are not income tax payers and (iii) would also reimburse the promotional and development activities including incentive to the contribution collection agencies to encourage people to join the APY.

Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of Corpus to the nominee of subscribers: For example, to get a fixed monthly pension between Rs. 1,000 per month and Rs. 5,000 per month, the subscriber has to contribute on monthly basis between Rs 42 and Rs. 210, if he joins at the age of 18 years. For the same fixed pension levels, the contribution would range between Rs 291 and Rs. 1,454, if the subscriber joins at the age of 40 years.