Atal Pension Yojna: Explained

Atal Pension Yojna (APY): It is Government of India scheme regulated by Pension Fund Regulatory and Development Authority (PFRDA). The APY will be focussed on all citizens in the unorganised sector, who join the National Pension System (NPS). It will replace the scheme launched in 2010-11- Swavalambhan Yojna. The existing subscribers of Swavalamban Scheme would be automatically migrated to APY, unless they opt out.


What are the benefits of APY?
There are five guaranteed pensions ranging between Rs 1000 to Rs 5000 to opt from, if he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary accordingly- low if joined at early age and high if joined at later age.

Eligibility?
Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme.

Age limit?
The minimum age is 18 years and maximum 40 years which means minimum period of contribution would be 20 years or more.

Contribution/Premium from Subscribers?
Contribution would be on monthly basis depending on the age and scheme opted. For instance, 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.

Contribution from Government?
Under the scheme, the government will contribute 50 per cent of the beneficiaries’ premium limited to Rs 1,000 each year, for five years, in the new accounts opened before December 31, 2015.

Launch Date?
The APY would be launched from 1st June, 2015.