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Friday, 21 July 2017
Atal Pension Yojana (APY)
Press Information Bureau
Government of India
Ministry of Finance 21-July-2017 17:23 IST
Atal Pension Yojana (APY) - launched by the Government of India in May,
2015, primarily targeted at the unorganised sector and informal workers.
The Atal Pension Yojana (APY) has
been launched by the Government of India in May, 2015, which is primarily
targeted at the unorganised sector and informal workers. The registration of
subscribers under APY started from June 1, 2015. The salient features of the
Atal Pension Yojana are as under:
between the age group of 18 to 40 years eligible to join APY through their
savings bank account or post office savings bank account.
·APY is based on
defined benefit for providing guaranteed minimum monthly pension of Rs. 1000 or
Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 at the age of 60 years based on
pension amount chosen.
Government would also co-contribute 50% of the total contribution or Rs. 1000
per annum, whichever is lower, to each eligible subscriber, for a period of 5
years, i.e., from Financial Year 2015-16 to 2019-20, who have joined the APY
before 31st March, 2016, and who are not members of any statutory social
security scheme and who are not income tax payers.
·In case of
premature death of Subscriber (death before 60 years of age), spouse of the
subscriber has been given an option to continue contributing to APY account of
the subscriber, for the remaining vesting period, till the original subscriber
would have attained the age 60 years.
·In case of death of
both subscriber and spouse, the entire pension corpus would be returned to the
·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 actual returns during the
accumulation phase are higher than the assumed returns for minimum guaranteed
pension, such excess will be passed on to the subscriber.
With a view to provide flexibility to
the subscribers of APY with seasonal or irregular income, besides the monthly
mode of payment, quarterly and half yearly mode of payment of contributions
have been provided in the Scheme. Further in case of default in payment of
contribution, a subscriber may regularize the account by paying the overdue
amount along with a minimal charge to obtain the guaranteed pension.
The Pension Fund Regulatory and
Development Authority (PFRDA) has intimated that the report of PFRDA and CRISIL
on ‘Financial security for India’s elderly’ has, inter-alia, mentioned
designing of a pension policy exclusively for women where contributions could
be from the women’s families. Some tax relief to the savings held in the form
of pension has also been mentioned.
This was stated by Shri Santosh Kumar
Gangwar, Minister of State for Finance in written reply to a question in Lok