Atal Pension Yojana (APY)

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) 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

  • Under the APY, there is guaranteed minimum monthly pension for the subscribers ranging between Rs. 1000 and Rs. 5000 per month.
  • The benefit of minimum pension would be guaranteedby the GoI.
  • 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.
  • 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.
  • All bank account holders may join APY.

Eligibility

  • APY is applicable to all citizen of India aged between 18-40 years.
  • Aadhaar will be the primary KYC. Aadhar 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.

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.
  • 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.

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, 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

Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 42 1,000 1.7 Lakh
20 40 50 1,000 1.7 Lakh
25 35 76 1,000 1.7 Lakh
30 30 116 1,000 1.7 Lakh
35 25 181 1,000 1.7 Lakh
40 20 291 1,000 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

Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 84 2,000 3.4 Lakh
20 40 100 2,000 3.4 Lakh
25 35 151 2,000 3.4 Lakh
30 30 231 2,000 3.4 Lakh
35 25 362 2,000 3.4 Lakh
40 20 582 2,000 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

Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 126 3,000 5.1 Lakh
20 40 150 3,000 5.1 Lakh
25 35 226 3,000 5.1 Lakh
30 30 347 3,000 5.1 Lakh
35 25 543 3,000 5.1 Lakh
40 20 873 3,000 5.1 Lakh

Table of contribution levels, 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

Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 168 4,000 6.8 Lakh
20 40 198 4,000 6.8 Lakh
25 35 301 4,000 6.8 Lakh
30 30 462 4,000 6.8 Lakh
35 25 722 4,000 6.8 Lakh
40 20 1164 4,000 6.8 Lakh

Table of contribution levels, 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

Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18 42 2108 5,000 8.5 Lakh
20 40 248 5,000 8.5 Lakh
25 35 376 5,000 8.5 Lakh
30 30 577 5,000 8.5 Lakh
35 25 902 5,000 8.5 Lakh
40 20 1454 5,000 8.5 Lakh