Pradhan Mantri Atal Pension Yojana (APY)

February 18, 2016 | Last Modified: February 18, 2016 at 5:23 pm

Pradhan Mantri Atal Pension Yojana

It is a national pension scheme launched by the government of India in the budget of 2015. Pradhan Mantri Atal Pension Yojana, also called as Atal Pension Yojana (APY) came into effect from 1st June 2015. APY is mainly focused to create universal social security system for all Indians especially for the poor, under-privileged and workers in the un-organized private sector. It is a retirement saving scheme for those who are not income tax payers and have not subscribed any statutory social security scheme.

Pension Fund Regulatory and Development Authority (PFRDA) is administrating the Atal Pension Yojana under the overall administrative and institutional architecture of the National Pension System (NPS).

It is a guaranteed fixed pension scheme, the subscriber of Atal Pension Yojana would receive the fixed pension of INR 1000/-, 2000/-, 3000/-, 4000/- or 5000 per month after the age of 60 years. The pension amount will depend on the contribution of the subscriber which itself would vary on the age of joining the APY.

The minimum time period to contribute in Atal Pension Yojana is 20 Years. Interested candidates can apply for APY after attaining the age of 18 years and the person whose age is more than 40 years cannot subscribe for the scheme.

Benefits of Atal Pension Yojana:

  • APY offers an option to plan your retirement.
  • APY saves money for your retirement.
  • Subscriber will receive fixed guaranteed pension of Rs. 1000/- to Rs. 5000/- after age of 60 years until death.
  • 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.
  • 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 age 60 of the subscriber.
  • APY offers an option to make yourself independent in the age of senior citizen.

Eligibility Criteria to Join the Atal Pension Yojana:

Interested applicants who wants to join Atal Pension Yojana should meet the eligibility criteria of the scheme as mentioned below:

  • APY is open only for India citizen who have saving bank account or if not should open a saving account.
  • Minimum age to subscribe for the scheme is 18 years. After attaining the age of 40 years, applicants cannot subscribe for the scheme. The minimum period to contribute under the scheme is 20 years.
  • To be eligible for APY, the subscriber have to keep one point in mind that he/she is not a subscriber of any statutory social security scheme.
  • The subscriber should not be an income tax payer.

How to Enroll for Atal Pension Yojana

To enroll for Atal Pension Yojana, the subscriber must meet the eligibility criteria mentioned above. The application for APY requires complete details including account number, spouse and nominee details, and authorization for auto debit of contribution amount. Account holders subscribing for the scheme need to ensure that sufficient balance is maintained in the account every month, failing to do so will attract a monthly penalty mentioned below:

– Rs. 1 for monthly contribution up to INR 100
– Rs. 2 for monthly contribution between INR 101 and INR 500
– Rs. 5 for monthly contribution between INR 501 and INR 1,000
– Rs. 10 for monthly contribution beyond INR 1,001

If no payment is made towards the scheme
– For six months, the holder’s account will be frozen.
– For 12 months, the holder’s account will be deactivated.
– For 24 months, the holder’s account will be closed.

Payment Contribution by Subscriber:
The contribution of payment by subscriber/policy holder shall be made through the facility of auto-debit from his/her saving bank account. The payment for Atal Pension Yojana will be made on monthly, quarterly and half-yearly basis. The subscribers are required to contribute for the prescribed contribution amount from the age of joining APY till age 60. The detailed contribution to be made by the subscriber can be viewed at the link below:
http://www.jansuraksha.gov.in/Files/APY/English/Rules.pdf

Payment Contribution by Central Government:
The Central Government would also co-contribute 50% of the subscriber’s 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 March, 2016 and who are not income tax payers.

Exit, withdrawal & pension payment:
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 subscriber.

Application Forms:
The application form for Atal Pension Yojana can be obtained by using the link below:
http://www.jansuraksha.gov.in/Forms-APY.aspx

Atal Pension Yojna FAQs:
http://www.jansuraksha.gov.in/Files/APY/ENGLISH/FAQ.pdf

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