The Government of
India is concerned about the old age income security of the working poor and is
focused on encouraging and enabling them to save for their retirement. 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
The GoI has therefore
announced a new scheme called Atal Pension Yojana (APY)1 in 2015-16 budget. The
APY is focussed on all citizens in the unorganized sector.
The scheme is
administered by the Pension Fund Regulatory and Development Authority (PFRDA)
through NPS architecture.
HIGHLIGHTS OF ATAL PENSION YOJANA
Ø
Under the APY, there is guaranteed minimum
monthly pension for the subscribers ranging between Rs. 1000 and Rs. 5000 per
month.
Ø
The benefit of minimum pension would be
guaranteed by the GoI.
Ø
GoI will also co-contribute 50% of the
subscriber’s contribution or Rs. 1000 per annum, whichever is lower. Government
co-contribution is available for those who are not covered by any Statutory
Social Security Schemes and is not income tax payer.
Ø
GoI will co-contribute to each eligible
subscriber, for a period of 5 years who joins the scheme between the period 1st June, 2015 to 31st December, 2015. The
benefit of five years of government Co-contribution under APY would not exceed
5 years for all subscribers including migrated Swavalamban beneficiaries.
Ø
All bank account holders may join APY.
Eligibility
Ø
APY is applicable to all citizen of India aged
between 18-40 years.
Ø
Aadhaar will be the primary KYC. Aadhaar and
mobile number are recommended to be obtained from subscribers for the ease of
operation of the scheme. If not available at the time of registration, Aadhar
details may also be submitted later stage.
Charges
for default
Banks are required to collect additional amount for delayed
payments, such amount will vary from minimum Re 1 per month to Rs 10/- per
month as shown below:
Ø
Rs. 1 per month for contribution upto Rs. 100
per month.
Ø
Rs. 2 per month for contribution upto Rs. 101 to
500/- per month.
Ø
Rs. 5 per month for contribution between Rs 501/-
to 1000/- per month.
Ø
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.
Important
information for subscriber:
Discontinuation of
payments of contribution amount shall lead to following:
Ø
After 6 months account will be frozen.
Ø
After 12 months account will be deactivated.
Ø
After 24 months account will be closed.
Subscriber should ensure that the Bank account to be funded
enough for auto debit of contribution amount.
Exit :
On
attaining the age of 60 years:
The exit from APY is permitted at the age with 100%
annuitisation of pension wealth. On
exit, pension would be available to the subscriber.
In case of death of the Subscriber
due to any cause:
In case of death of
subscriber pension would be available to the spouse and on the death of both of
them (subscriber and spouse), the pension corpus would be returned to his
nominee.
Exit Before the age of 60 Years:
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 beneficiary or terminal
disease.
Status
of contribution
The status of contributions will be intimated to the
registered mobile number of the subscriber by way of periodical SMS alerts. The
Subscriber will also be receiving physical Statement of Account once a year.
Existing
subscribers in Swavalamban Yojana
A.Subscriber between age group of 18 to 40
Ø
The subscriber would be automatically migrated
to APY with an option to opt out .
Ø
GoI Co-contribution of existing subscribers
under APY would not exceed 5 years for all subscribers.
For example ,Swavalamban beneficiary has
received the benefit of government Co- Contribution of 1 year, then the
Government co-contribution under APY would be available only 4 years and so on.
Ø
Existing subscribers may approach existing
Aggregator or the nearest authorized bank branch for shifting their Swavalamban
account into APY with PRAN details.
Ø
Existing Swavalamban beneficiaries opting out
from the proposed APY will be given Government co-contribution till 2016- 17,
if eligible, and the NPS Swavalamban would continue till such people attained
the age of exit under that scheme.
B. Subscribers above 40 years of age
Ø
Subscribers do not wish to continue may opt out
the with the complete withdrawal of entire amount in lump sum.
Ø
Subscriber may prefer to continue till 60 years
by availing the Government co-contribution till 2016-17 and be eligible for
annuities there under
Indicative APY Contribution Chart (Age wise)
Annexure 1
Age of
Entry
|
Years of
Contribution
|
Monthly pension
of Rs. 1000 and
Indicative return
of corpus to the
nominee of Rs1.7
Lakh
|
Monthly pension
of Rs. 2000 and
indicative return
of corpus to the
nominee of Rs.3.4
Lakh.
|
Monthly pension of
Rs. 3000 and
indicative return of
corpus to the
nominee of Rs.5.1
Lakh.
|
Monthly pension of
Rs. 4000 and
indicative return of
corpus to the
nominee of Rs.6.8
Lakh
|
Monthly pension
of Rs. 5000 and
indicative return
of corpus to the
nominee of Rs.8.5
Lakh
|
18
|
42
|
42
|
84
|
126
|
168
|
210
|
19
|
41
|
46
|
92
|
138
|
183
|
228
|
20
|
40
|
50
|
100
|
150
|
198
|
248
|
21
|
39
|
54
|
108
|
162
|
215
|
269
|
22
|
38
|
59
|
117
|
177
|
234
|
292
|
23
|
37
|
64
|
127
|
192
|
254
|
318
|
24
|
36
|
70
|
139
|
208
|
277
|
346
|
2
|
35
|
76
|
151
|
226
|
301
|
376
|
26
|
34
|
82
|
164
|
246
|
327
|
409
|
27
|
33
|
90
|
178
|
268
|
356
|
446
|
28
|
32
|
97
|
194
|
292
|
388
|
485
|
29
|
31
|
106
|
212
|
318
|
423
|
529
|
30
|
30
|
116
|
231
|
347
|
462
|
577
|
31
|
29
|
126
|
252
|
379
|
504
|
630
|
32
|
28
|
138
|
276
|
414
|
551
|
689
|
33
|
27
|
151
|
302
|
453
|
602
|
752
|
34
|
26
|
165
|
330
|
495
|
659
|
824
|
35
|
25
|
181
|
362
|
543
|
722
|
902
|
36
|
24
|
198
|
396
|
594
|
792
|
990
|
37
|
23
|
218
|
436
|
654
|
870
|
1087
|
38
|
22
|
240
|
480
|
720
|
957
|
1196
|
39
|
21
|
264
|
528
|
792
|
1054
|
1318
|
40
|
20
|
291
|
582
|
873
|
1164
|
1454
|
