ATAL PENSION YOJANA- Secure your old age with small saving habit

Atal Pension Yojana (APY) is one of the Social Security Scheme promoted by the Central Government. This scheme is launched to address the longevity risks among the workers in unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement, who constitute 88% of the total labour force of 47.29 crore as per the 66th Round of NSSO Survey of 2011-12, but do not have any formal pension provision.

The Atal Pension Yojana will provide defined pension, depending on the contribution, and its period. The APY will be focussed on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA). Under the APY, the subscribers would receive the fixed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY. The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by any subscriber under APY would be 20 years or more. The benefit of fixed minimum pension would be guaranteed by the Government.

What are the benefits of Atal Pension Yojana?

Fixed pension for the subscribers ranging between Rs. 1000 to Rs. 5000, if he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary and would be low if subscriber joins early and increase if he joins late.

The USP of this scheme is that after death of the subscriber, the spouse will get the pension benefit and after death of the spouse, the nominee will get a lump-sum amount.

What are the eligibility for enrolling  into Atal Pension Yojana?

Atal Pension Yojana (APY) is open to all bank account holders.The minimum age of joining APY is 18 years and maximum age is 40 years. The age of exit and start of pension would be 60 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more.

Where to contact for enrolling into Atal Pension Yojana?

You can apply to the Bank where you are having your saving account.

When You can exit from Atal Pension Yojana?

Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed monthly pension. 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.

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

The details are as below:

Age of Joining	Years of Contribution	Indicative Monthly Contribution (in Rs.)	Monthly Pension to the subscribers and his spouse (in Rs.)	Indicative Return of Corpus to the nominee of the subscribers (in Rs.)
18	42	1000	42	1.7 Lakh
20	40	1000	50	1.7 Lakh
25	35	1000	76	1.7 Lakh
30	30	1000	116	1.7 Lakh
35	25	1000	181	1.7 Lakh
40	20	1000	291	1.7 Lakh
18	42	2000	84	3.4 Lakh
20	40	2000	100	3.4 Lakh
25	35	2000	151	3.4 Lakh
30	30	2000	231	3.4 Lakh
35	25	2000	362	3.4 Lakh
40	20	2000	582	3.4 Lakh
18	42	3000	126	5.1 Lakh
20	40	3000	150	5.1 Lakh
25	35	3000	226	5.1 Lakh
30	30	3000	347	5.1 Lakh
35	25	3000	543	5.1 Lakh
40	20	3000	873	5.1 Lakh
18	42	4000	168	6.8 Lakh
20	40	4000	198	6.8 Lakh
25	35	4000	301	6.8 Lakh
30	30	4000	462	6.8 Lakh
35	25	4000	722	6.8 Lakh
40	20	4000	1164	6.8 Lakh
18	42	5000	210	8.5 Lakh
20	40	5000	248	8.5 Lakh
25	35	5000	376	8.5 Lakh
30	30	5000	577	8.5 Lakh
35	25	5000	902	8.5 Lakh
40	20	5000	1454	8.5 Lakh

The monthly contribution will be deducted from the linked saving account every month. APY module will raise demand on the due date and continue to raise demand till the amount is recovered from the subscriber’s account.

The due date for recovery of monthly contribution may be treated as the first day /or any other day during the calendar month for each subscriber. Bank can recover amount any day till the last day of the month. It will imply that contribution are recovered as and when funds are available any point during the month.

Under APY, the individual subscribers shall have an option to make the contribution on a monthly basis. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Rs. 1 per month to Rs 10/-per month as shown below:

• Rs. 1 per month for contribution upto Rs. 100 per month.
• Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.
• Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.
• Rs. 10 per month for contribution beyond Rs 1001/- per month.               

Discontinuation of payments of contribution amount shall lead to following:

• After 6 months account will be frozen.
• After 12 months account will be deactivated.
• After 24 months account will be closed

APY mobile application is available for APY users free of cost, where, recent 5 contributions can be checked and transaction statement and e-PRAN can also be downloaded anytime without paying any charge. Android users can download APY mobile application from Google play store by typing ‘APY and NPS Lite’ in search option

Voluntary exit (Exit before 60 Years of age): For closure of APY accounts a duly filled “Account Closure Form (Voluntary Exit) form” and other relevant documents is to be submitted to the concerned APY-SP branch. 

Subscriber should not close the savings bank account linked with APY account even though the APY account gets closed because the closure proceeds which the subscriber will receive on the pre-mature exit is transferred into the APY linked savings bank account and closure of this account may create problem in transfer of closure proceeds. 

Exit due to Death: The claimant may submit the duly filled “APY Closure Form (Death)” along with a copy of the death certificate to the concerned APY-SP branch. 

On death of the APY account subscriber before 60 years, spouse has the option to continue the contribution in the APY account of subscriber, which can be maintained in the spouse’s name, for the remaining vesting time, till the time original subscriber would have attained 60 years of age. In case the spouse does not wish to continue the account, he/she shall only be refunded the accumulated pension wealth i.e. contributions made by him to APY, along with the net actual interest earned on his contributions (after deducting the account maintenance charges). 

On death of the APY account subscriber after 60 years, the monthly guaranteed pension shall be payable to the spouse of the subscriber and in the absence or subsequent death of the spouse, the pension wealth/corpus as accumulated as per the pension plan subscribed shall be payable to the nominee of the subscriber. The nominee has to be someone else other than the spouse of the subscriber.

Subscriber can anytime raise grievance free of cost and from anywhere by visiting: www.npscra.nsdl.co.in >>Home >> select: NPS-Lite or through CGMS .

Subscriber raising the grievance will be allotted a token number against the grievance raised. Subscriber may check the status of the grievance under “Check the status of Grievance / Enquiry already registered”.

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