Atal Pension Yojana is a very important scheme for non-government public. Here we know the detail of APY scheme. This scheme will be very helpful to the person at the age of 60 (sixty) years.
Introduction of APY scheme
Atal Pension Yojana is a scheme for citizen of India. It is focused on the unorganized sector workers. Under APY scheme, you can get guaranteed pension of Rs.1000/- or Rs.2000/- or Rs.3000/- or Rs.4000/- or Rs.5000/- per month. The installment of pension is depending on the contribution of subscriber. The pension payment will start at the age of 60 years.
Eligibility of a person to join the APY scheme
The eligibility criteria for the APY scheme is as under.
- Person must be a citizen of India
- Age between 18 to 40 years
- Subscriber must have saving account
- Person can provide Aadhar and mobile. So, he will get the updates of the APY scheme.
- Aadhar is not mandatory for enrollment.
The co-contribution of government of India is available for five years from financial year 2015-16 to 2019-20. The co-contribution is for a person who joined during 01.06.2015 to 31.03.2016. It is not covered under any statuary social security scheme and is not a income tax payer.
Government pay co-contribution to eligible PRAN by PFRDA after receiving contribution from CRKA. The subscriber has to pay all installment for the year. Government contribution will credited in subscribers’ saving account / POSB account. The government contribution is 50% of the total contribution subject to maximum of Rs.1000/- at the end of financial year.
- PRAN – Permanent Retirement Account Number.
- PFRDA – Pension Fund Regulatory and Development Authority
- CRKA – Central Record Keeping Agency
- POSB – Post Office Saving Bank
- NPS – National Pension System
- SMS – Short Message Service
Installment of Atal Pension Yojana
- Installment of APY is as per NPS.
- As per investment guideline prescribed by PFRDA for Central Government / State Government / NPS-Lite / Swavlamban Scheme / Atal Pension Yojana.
Procedure for opening of account
- Open saving account
- Fill up APY registration form
- Provide Aadhar and mobile. It is not necessary.
- Ensure to keep required balance for contribution.
Mode of contribution
- Auto debit from saving account.
- Contribution may be monthly / quarterly / half yearly.
Premium / subscription of APY
- The amount of contribution is depending on the following.
- Desired monthly pension
- The age of subscriber at entry.
- The table of the premium is as under.
Deduction of contribution
- Monthly – any day of the month
- Quarterly – First month of the quarter
- Half yearly – First month of the half year
Default due to insufficient balance in the due month is Rs.1/- per premium of Rs.100/- and part thereof for each delayed monthly subscription.
You can increase / decrease your premium once in a year. The increase / decrease switching option shall be available once in a year in the month of April.
- It is required to provide nominee detail.
- If subscriber is married, the spouse will be default nominee.
- If subscriber is unmarried, he has to give nominee detail of any.
- Provide Aadhar detail of nominee.
Withdrawal from Atal Pension Yojana
Withdrawal is available on the different age and different situation as under.
On attaining 60 years of APY subscriber
- Please submit the request to concerned bank / post office.
- You will get guaranteed monthly pension / higher monthly pension.
On the death of the subscriber
- The nominee / spouse will get same amount of pension.
- Nominee is eligible for return of pension on the death of both subscriber and spouse.
Death after 60 years age
- Payment to nominee
Before 60 years age
- Pension payment not permitted
- Permitted by PFRDA only in exceptional case i.e. death of beneficiary or terminal disease etc. The procedure as per premature exit under NPS.
Voluntarily exit before 60 years age
- Subscriber will get only his subscription with net actual accrued income earned by deducting the account maintenance charge.
- Government co-contribution will not be given back to the subscriber.
Death before 60 years of age
- Entire accumulated corpus of APY will be given to the nominee / spouse.
- Pension shall not be payable to the nominee / spouse.
Status of contribution
- Subscriber will get statement of contribution once in a year.
- He can get the information through SMS alert.
What is pension?
- A pension provides people a monthly income when they have no longer earning.
Why we need pension?
- Decreased income earning with age.
- The rise of nuclear family.
- Migration of earning members.
- Rise in cost of living.
- Increase long life.
- Assured monthly income ensures good life in old age.
Table of charges and fees of APY
|Title||Charge Head||Service charge||Method of collection|
|Points of Presence||(i) Initial Subscriber registration
(ii) Subsequent persistence
|Rs.120/- to Rs.150/-, depending upon the number of subscribers.
Rs.100/- per annum per subscriber
|Paid by government as incentive, promotion and development charges for APY on the pattern of Swavalamban|
|Central Record Keeping Agencies||
(i) Account opening charge
(ii) Account maintenance Charge
Rs.15/- per account
Rs.40/- per account per annum
|Cancellation of units|
|Pension Fund Managers||Investment Management Fund||0.0102% per annum of AUM||Adjusted in Net Asset value|
|Custodian||Investment Maintenance Fee||0.0075% for electronic and 0.05% per annum for physical segment of AUM||Adjusted in Net Asset value|
Here we learn about the APY scheme. To know more about it or any query, please write to us.