Atal Pension Yojana | GOVERNMENT SCHEME

Atal Pension Yojana | GOVERNMENT SCHEME

Key features of Atal Pension Yojana

Atal Pension Yojana is a flagship social security scheme of the Ministry of Finance.

It was introduced in 2015 to replace the Swavalamban Yojana/NPS Lite program.

It addresses the old age income security of the working poor and the longevity risks among the workers in the unorganised sector.

It encourages the workers in the unorganised sector to voluntarily save for their retirement.

The subscriber's age should be between 18 and 40 years. As a result, the subscriber's minimum contribution duration under APY would be at least 20 years.

It is managed by the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System.

As of 2020, the male-to-female subscription ratio of 57:43.

Also, only 5% of the eligible population was covered under APY till 2020.

 

Benefits under APY

It provides a fixed pension for subscribers ranging between 1000 to Rs. 5000.

The contribution levels will vary depending on when the subscriber joins the plan. 

For example, if the subscriber joins the scheme at 18 years of age and has subscribed for a fixed monthly pension of Rs. 1,000 per month, he/she shall have to contribute Rs. 42 per month. If the subscriber enters the scheme at the age of 40, the contribution would increase to Rs 291 for the same fixed pension.

The same pension is payable to the Spouse after the death of the Subscriber.

Contributions to the Atal Pension Yojana (APY) qualify for tax breaks comparable to the National Pension System (NPS).

Eligibility

APY is open to all bank account holders not members of any statutory social security scheme.

Any individual eligible to receive benefits under the APY will have to furnish proof of possession of an Aadhaar number or undergo enrolment under Aadhaar authentication.

 

Funding

The Central Government would provide 50% of the subscriber's contribution up to Rs. 1000 per year for a five-year term, from 2015-16 to 2019-20.