Atal Pension Yojana – APY Scheme Eligibility, Benefits & Complete Details

Atal Pension Yojana – APY Scheme Eligibility & Benefits

Atal Pension Yojana (APY) addresses the old age income security of the working poor and the longevity risks among the workers who worked in unorganized sector. It encourages the workers in unorganized sector to voluntarily save for their retirement. The Government had launched the scheme on 09.05.2015 with effect from 1st June, 2015. The scheme replaces the Swavalamban Yojana / NPS Lite scheme.

Goal of Scheme

The goal of the scheme is to ensure that no Indian citizen has to worry about any illness, accidents or diseases in old age, giving a sense of security.

Key beneficiaries

The Atal Pension Yojana (APY) was launched to create a universal social security system for all Indians, especially the poor, the under-privileged and the workers who are working in the unorganized sector.

Eligibility for Atal Pension Yojana

Atal Pension Yojana is open to all bank account holders in the age group of 18 to 40 years and the contributions differ, based on pension amount chosen. Subscriber should make contributions for a minimum of 20 years.

The subscribers should not be part of any other statutory social security schemes (For eg: Employee’s provident fund), or should not be paying income taxes, in order to avail Government’s co-contribution.

Funding of Atal Pension Yojana

Government would provide

• fixed pension guarantee for the subscribers;
• Under the Atal Pension Yojana, the Central Government’s co-contribution of 50% of the subscriber’s contribution up to Rs. 1000 per annum, was available to each eligible subscriber, for a period of 5 years, i.e. from 2015-16 to 2019-20, who join APY before 31st March, 2016 and who is not a beneficiary of any social security scheme and is not an income tax payer.

Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of Corpus to the nominee of subscribers

The Table of contribution levels, fixed monthly pension to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period is given below. For example, 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.

Important Points

Early withdrawal is not entertained. Only In case of premature death of subscriber (death before 60 years of age), spouse of the subscriber can continue contribution to APY account of the subscriber, for the remaining vesting period, till the original subscriber would have attained the age of 60 years.

Subscribers can make contributions to APY on monthly/ quarterly / half-yearly basis.

Subscribers can voluntarily exit from APY subject to only on a certain conditions, only your contribution plus interest earned will be returned. You will not be eligible to receive the government’s co-contribution or the interest earned on that amount.

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