Atal Pension Yojana

 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