Atal Pension Yojana

Features of Atal Pension Yojana

Atal Pension Yojana: The Government of India is concerned about the old age income security of the working poor and focuses on encouraging and enabling them to save for their retirement. It aims to address longevity risks among workers in the unorganized sector and to encourage workers in the unorganized sector to voluntarily save for their retirement.
Therefore, the Government of India has announced a new scheme called Atal Pension Yojana (APY) in the Budget 2015-16. APY is targeted at all citizens in the unorganized sector. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through the NPS structure.

Key Features of Atal Pension Yojana

Atal Pension Yojana was established by the Government of India to provide a guaranteed monthly pension to all Indians after the age of 60 years. Its targets are mainly the poor, the underprivileged and workers in the unorganized sector. It is regulated by the PFRDA (Pension Fund Regulatory and Development Authority) through the NPS (National Pension System) structure.
Rs 1000 to Rs 5000. Guaranteed minimum monthly pension for subscribers between Rs. 1000 per month (in multiples of 1000).
The minimum pension will be guaranteed by the Government of India in the sense that if the actual return received on pension contributions is less than the expected return for the minimum guaranteed pension over the period of contribution, such shortfall will be financed by the Government. If the actual return on pension contribution exceeds the expected return for minimum guaranteed pension, during the period of contribution, such excess will be credited to the subscriber’s account, resulting in increase in scheme benefits to the subscribers.
Government of India will also match 50% of the subscribers’ contribution or Rs.1000/- only for the first 5 years. Will make a co-contribution of Rs. 10,000 per year, whichever is less.
The benefit of contribution is for a period of 5 years and the scheme is for those who open accounts between the period 1.06.2015 to 31.03.2016.

Atal Pension Yojana Eligibility

Will be applicable to all citizens of India between the age of 18-40 years.
Aadhaar will be its primary KYC.
If not available at the time of account opening then Aadhaar details can be submitted later.
All bank account holders can join APY

Who is not eligible for Atal Pension Yojana

The following persons are not eligible for government contribution on the following criteria.

Who joined the scheme on or after 01.04.2016.
If he is an income tax payer.
If he is protected under any social security scheme or employee provident fund scheme.
Non-Resident Indians (NRIs) are not eligible to open an account. If an Indian citizen becomes an NRI during the tenure of the APS scheme, the account will be closed and the entire contributions and returns earned on them will be paid to the account holder.

Withdrawal

Upon turning 60 years of age
100% annuitization of pension money/principal fund is allowed at this age. Pension will be available to the customer on withdrawal.
In case of death of the subscriber, the pension will be available to the spouse and on the death of both of them (subscriber and spouse), the pension basic fund will be given to his/her nominee.
Voluntary exit is allowed before the age of 60 years. In case of subscribers who have availed the benefit of Government co-contribution under APY, the net actual income earned on his/her contribution (after deducting account maintenance charges), Government co-contribution, and accrued income earned on Government co-contribution , will not be given to him.

Fee for default

Banks are required to collect additional amount for delayed payments, such amount will vary from a minimum of Rs 1/- per month to Rs 10/- per month as shown below: