Atal Pension Yojana (APY)
The Atal Pension Yojana (APY) was launched to create a universal social security system for all Indians, especially the poor, the underprivileged and the workers in the unorganised sector. It is an initiative of the Government to
provide financial security and cover future exigencies for the people in the unorganized sector.
1 The scheme was launched on May 09, 2015,
2 and was operationalised w.e.f. June 01, 2015
3 . APY is administered by Pension Fund Regulatory and Development Authority (PFRDA) under the overall administrative and institutional architecture of the National Pension System (NPS).
BENEFITS of Atal Pension Yojana (APY)
Subscribers would receive the guaranteed minimum monthly pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 after the age of 60 years, based on the contributions made by the subscriber after joining the scheme.
ELIGIBILITY for Atal Pension Yojana (APY)
APY is open to all bank account holders in the age group of 18 to 40 years who are not income taxpayers and the contributions differ, based on the pension amount chosen.
DISBURSEMENT OF THE APY SCHEME BENEFITS
The monthly pension is 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.
In case of premature death of subscriber (death before 60 years of age), spouse of the subscriber can continue contribution to APY account of the subscriber, for the remaining vesting period, till the original subscriber would have attained the age of 60 years.
CONTRIBUTION BY CENTRAL GOVERNMENT
The minimum pension would be guaranteed by the Government, i.e., if the accumulated corpus based on contributions earns a lower than 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.
PAYMENT FREQUENCY
Subscribers can make contributions to APY on a monthly/quarterly/half-yearly basis.
WITHDRAWAL FROM THE SCHEME
Subscribers can voluntarily exit from APY subject to certain conditions, on deduction of Government co-contribution and return/interest thereon.