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Atal Pension Yojana- Full details of the Atal Pension scheme- (APY)

Atal Pension Yojana:

  • The Government of India is extremely 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). To address the longevity risks among the
    workers in unorganized sector and to encourage the workers in unorganized sector
    to voluntarily save for their retirement, who constitute 88% of the total labor force of
    47.29 crore as per the 66th Round of NSSO Survey of 2011-12, but do not have any
    formal pension provision, the Government had started the Swavalamban Scheme in
    2010-11. However, coverage under Swavalamban Scheme is inadequate mainly due
    to lack of guaranteed pension benefits at the age of 60.
  • The Government announced the introduction of universal social security
    schemes in the Insurance and Pension sectors for all Indians, especially the poor and
    the underprivileged, in the Budget for the year 2015-16. Therefore, it has been
    announced that the Government will launch the “Atal Pension Yojana” (APY), which
    will provide a defined pension, depend on the contribution, and its period. The
    APY will be focussed 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. Therefore,
    a minimum period of contribution by any subscriber under “APY” would be 20 years or
    more. The benefit of fixed minimum pension would be guaranteed by the
    Government. The “APY” would be introduced from 1st June, 2015.

The benefit of Atal Pension Yojana (APY):

  • The Scheme is subject to the approval of the Government.
  •  Fixed pension for the subscribers ranging between Rs. 1000 to Rs. 5000, if he
    joins and contributes between the age of 18 years and 40 years. The contribution
    levels would vary and would be low if subscriber joins early and increase if he joins
    late.

 Eligibility for “Atal Pension Yojana” (APY):

  •  “Atal Pension Yojana” (APY) is open to all bank account holders. The Central government
    would also co-contribute 50% of the total contribution or Rs. 1000 per
    annum, whichever is lower, to each eligible subscriber account, for a period of 5
    years, i.e., from Financial Year 2015-16 to 2019-20, who join the NPS between the
    period 1st June 2015 and 31st December 2015 and who are not members of any
    statutory social security scheme and who are not income taxpayers. However, the
    scheme will continue after this date but Government Co-contribution will not be
    available.
  •  The Government co-contribution is payable to eligible PRANs by PFRDA after
    receiving the confirmation from Central Record Keeping Agency at such periodicity
    as may be decided by PFRDA.

 Age of joining and contribution period:

  • The minimum age of joining “APY” is 18 years and maximum age is 40 years.
    The age of exit and start of pension would be 60 years. Therefore, minimum period
    of contribution by the subscriber under “APY” would be 20 years or more.

The focus of “Atal pension yojana” (APY):

  • Mainly targeted at unorganized sector workers.

 Enrolment and Subscriber Payment:

  • All bank account holders under the eligible category may join “APY” with the autodebit
    facility to accounts, leading to the reduction in contribution collection charges. The subscribers
    should keep the required balance in their savings bank accounts on the
    stipulated due dates to avoid any late payment penalty. Due dates for monthly
    contribution payment is arrived based on the deposit of first contribution amount. In
    case of repeated defaults for a specified period, the account is liable for foreclosure
    and the GoI co-contributions, if any shall be forfeited. Also any false declaration
    about his/her eligibility for benefits under this scheme for whatsoever reason, the
    entire government contribution shall be forfeited along with the penal interest. For
    enrolment, Aadhaar would be the primary KYC document for identification of
    beneficiaries, spouse, and nominees to avoid pension rights and entitlement related
    disputes in the long-term. The subscribers are required to opt for a monthly pension
    from Rs. 1000 – Rs. 5000 and ensure payment of stipulated monthly contribution
    regularly. The subscribers can opt to decrease or increase pension amount during
    the course of accumulation phase, as per the available monthly pension amounts.
    However, the switching option shall be provided once in year during the month of
    April. Each subscriber will be provided with an acknowledgment slip after joining
    “APY” which would invariably record the guaranteed pension amount, the due date of
    contribution payment, PRAN etc.

 Enrolment agencies:

  • All Points of Presence (Service Providers) and Aggregators under
    Swavalamban Scheme would enroll subscribers through architecture of National
    Pension System. The banks, as POP or aggregators, may employ BCs/Existing in
    – banking aggregators, micro insurance agents, and mutual fund agents as enablers
    for operational activities. The banks may share the incentives received by them from
    PFRDA/Government, as deemed appropriate.

Operational Framework of “Atal Pension Yojana” (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 “Atal pension yojana” (APY). The offer document of APY including the
    account opening form would be formulated by PFRDA.

Funding of APY:

  • Government would provide (i) fixed pension guarantee for the subscribers; (ii)
    would co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever
    is lower, to eligible subscribers; and (iii) would also reimburse the promotional and
    development activities including an incentive to the contribution collection agencies to
    encourage people to join the “Atal pension yojana” (APY).

Migration of existing subscribers of Swavalamban Scheme to APY:

  • The existing Swavalamban 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 “Atal pension yojana” (APY) would not exceed 5 years for all subscribers.
    This would imply that if, as a Swavalamban beneficiary, he has received the benefit
    of government Co-Contribution for 1 year, then the Government co-contribution under
    APY would be available only 4 years and so on. Existing Swavalamban beneficiaries
    opting out from the proposed “APY” will be given Government co-contribution till 2016-
    17, if eligible, and the NPS Swavalamban continued till such people attained the age
    of exit under that scheme.
  • The existing Swavalamban subscribers between 18-40 years will be
    automatically migrated to “Atal pension yojana” (APY). For seamless migration to the new scheme, the
    associated aggregator will facilitate those subscribers for completing the process of
    migration. Those subscribers may also approach the nearest authorized bank branch
    for shifting their Swavalamban account into APY with PRAN details.
    10.3 The Swavalamban subscribers who are beyond the age of 40 and do not wish
    to continue may opt out the Swavalamban scheme by complete withdrawal of entire
    amount in a lump sum or may prefer to continue till 60 years to be eligible for
    annuities there under.

The penalty for default:

  • Under “APY”, the individual subscribers shall have an option to make the
    contribution on a monthly basis. Banks are required to collect additional amount for
    delayed payments, such amount will vary from minimum Rs. 1 per month to Rs 10/-
    per month as shown below:
    • Rs. 1 per month for contribution upto Rs. 100 per month.
    • Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.
    • Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.
    • Rs. 10 per month for contribution beyond Rs 1001/- per month.
    The fixed amount of interest/penalty will remain as part of the pension corpus of the
    subscriber.
  •  Discontinuation of payments of contribution amount shall lead to following:
    • After 6 months account will be frozen.
    • After 12 months account will be deactivated.
    • After 24 months account will be closed.

 Operation of the additional amount of delayed payments:

  • “APY” module will raise demand on the due date and continue to raise demand
    till the amount is recovered from the subscriber’s account.
  • The due date for recovery of monthly contribution may be treated as the first
    day /or any other day during the calendar month for each subscriber. Bank can
    recover amount any day until the last day of the month. It will imply that contribution
    are recovered as and when funds are available any point during the month.
  • The monthly contribution will be recovered on FIFO basis- earliest due installment
    will be recovered first along with the fixed amount of charges as mentioned above.
  • More than one monthly contribution can be recovered in month subject to
    availability of the funds. The monthly contribution will be recovered along with the
    monthly fixed due amount if any. In all cases, the contribution is to be recovered
    along with the fixed charges. This will be banks’ internal process. The due amount
    will be recovered as and when funds are available in the account.

Investment of the contributions under APY:

  • The amount collected under “APY” are managed by Pension Funds appointed
    by PFRDA as per the investment pattern specified by the Government. The
    subscriber has no option to choose either the investment pattern or Pension Fund.

Continuous Information Alerts to Subscribers

  • Periodical information to the subscribers regarding balance in the account,
    contribution credits etc. will be intimated to “APY” subscribers by way of SMS alerts.
    The subscribers will have the option to change the non – financial details like
    nominee’s name, address, phone number etc whenever required.
  • All subscribers under “APY” remain connected on their mobile so that timely
    SMS alerts can be provided to them at the time of making their subscription, auto-debit
    of their accounts and the balance in their accounts.

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.
    15.2 Exit before 60 years of age is not permitted, however, it is permitted only in
    exceptional circumstances, i.e., in the event of the death of the beneficiary or terminal
    disease.

 Age of Joining, Contribution Levels, Fixed Monthly Pension and Return
of Corpus to the nominee of subscribers:

  • The Table of contribution levels, fixed minimum monthly pension to
    subscribers and his spouse and return of corpus to nominees of subscribers and the
    contribution period is given below. 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.

Table of contribution levels, a fixed monthly pension of Rs. 1,000 per month to
subscribers and his spouse and return of corpus to nominees of subscribers
and the contribution period under “Atal Pension Yojana”:

Starting Age Invest per month (in Rs.) Return Nominee Return
18-42 42 1000 1.7 Lakh
20-40 50 1000 1.7 Lakh
25-35 76 1000 1.7 Lakh
30-40 116 1000 1.7 Lakh
35-40 181 1000 1.7 Lakh
40 291 1000 1.7 Lakh

Table of contribution levels, fixed monthly pension of Rs. 2,000 per month to
subscribers and his spouse and return of corpus to nominees of subscribers
and the contribution period under “Atal Pension Yojana”:

Starting Age Invest per month (in Rs.) Return Nominee Return
18-42 84 2000 3.4 Lakh
20-40 100 2000 3.4 Lakh
25-35 151 2000 3.4 Lakh
30-40 231 2000 3.4 Lakh
35-40 362 2000 3.4 Lakh
40 582 2000 3.4 Lakh

Table of contribution levels, fixed monthly pension of Rs. 3,000 per month to
subscribers and his spouse and return of corpus to nominees of subscribers
and the contribution period under “Atal Pension Yojana”:

Starting Age Invest per month (in Rs.) Return Nominee Return
18-42 126 3000 5.1 Lakh
20-40 150 3000 5.1 Lakh
25-35 226 3000 5.1 Lakh
30-40 347 3000 5.1 Lakh
35-40 543 3000 5.1 Lakh
40 873 3000 5.1 Lakh

Table of contribution levels, the fixed monthly pension of Rs. 4,000 per month to
subscribers and his spouse and return of corpus to nominees of subscribers
and the contribution period under “Atal Pension Yojana”:

Starting Age Invest per month (in Rs.) Return Nominee Return
18-42 168 4000 6.8 Lakh
20-40 198 4000 6.8 Lakh
25-35 301 4000 6.8 Lakh
30-40 462 4000 6.8 Lakh
35-40 722 4000 6.8 Lakh
40 1164 4000 6.8 Lakh

Table of contribution levels, the fixed monthly pension of Rs. 5,000 per month to
subscribers and his spouse and return of corpus to nominees of subscribers
and the contribution period under Atal Pension Yojana

Starting Age Invest per month (in Rs.) Return Nominee Return
18-42 210 5000 8.5 Lakh
20-40 248 5000 8.5 Lakh
25-35 376 5000 8.5 Lakh
30-40 577 5000 8.5 Lakh
35-40 902 5000 8.5 Lakh
40 1454 5000 8.5 Lakh

Your solved question in this article is:

Atal pension yojana detail

Atal pension yojana return

how to open Atal pension yojana

Need documents in Atal pension yojana

All pension details in Atal pension yojana

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3 thoughts on “Atal Pension Yojana- Full details of the Atal Pension scheme- (APY)

    1. go to your bank account and take a form of apy updation… fill it correctly all information… and you should take some documents of Nominee and attached with the updation form and now you will be able to change the nominee name in you atal pension yojana account.

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