Atal Pension Yojana

Atal Pension Yojana: Atal Pension Yojana (APY) is a pension scheme for the citizens of India with a focus on workers in the unorganized sector. The scheme was launched on May 9, 2015, and has been operational since June 1, 2015, to provide a sense of security to citizens and protect them from accidents, illnesses.

Ministry: Ministry of Finance

Administrated by: PFRDA (Pension Fund and Regulatory Development Authority of India)

Eligibility: 

• All Indian citizens between the ages of 18 and 40 are eligible to apply.
• The person who wants to avail this scheme must have paid contributions for at least 20 years.
• He should have a savings bank account with the Post Office/Savings Bank.
• The Atal Pension Yojana (APY) is open to all account holders who are not members of a statutory social security scheme.
• Participation in the scheme requires a bank account from which the amount contributed will be automatically debited on a regular basis.

Features:

1. It provides for a guaranteed minimum pension upon reaching the age of 60.The insured will receive a guaranteed minimum monthly pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 at the age of 60, based on the contributions made by the participant after joining the scheme
2. Subscribers can pay into the APY on a monthly/quarterly/semi-annual basis.
3. The GOI contribution is available for fiscal years 2015-16 to 2019-20, i.e. 5 years, for those subscribers who join the scheme during the period from June 1, 2015 to March 31, 2016 and who are also not included in the statutory and social security scheme and are not income tax payers.
4. Atal Pension Yojana is a government notified pension scheme and therefore provides tax exemption up to a maximum annual amount of Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961. In addition, the APY can also be claimed up to Rs. 50,000 annually under the relatively new Section 80CCD (1) of the Income Tax Act, 1961.

Withdrawal Process:

1. Upon reaching age 60: - Upon reaching age 60, the subscriber may have the guaranteed minimum monthly annuity or a higher monthly annuity paid to the respective bank if the investment returns are higher than the guaranteed returns embedded in the APY. In the event of the death of the subscriber, the spouse (standard nominee) will receive a monthly annuity in the same amount. Upon the death of the subscriber and spouse, both are entitled to receive payment of the accumulated annuity assets until age 60.
2. In the event of the death of the subscriber for any reason after the age of 60: - In the event of the death of the subscriber, the same annuity will be paid to the spouse and in the event of the death of both (subscriber and spouse) up to the age of 60, the annuity assets accumulated up to that age will be returned to the nominee.
3. Withdrawal before age 60: - If a member who has taken the state's co-share in the APY decides to voluntarily withdraw from the APY in the future, he or she will be credited only with the contribution he or she has made to the APY. The contribution will be refunded after deducting the actual net income earned plus the account maintenance fees. The governmental co-share and earnings attributable to the governmental co-share will not be refunded to such subscribers.
4. Death of the subscriber before reaching the age of 60:In the event of the death of the subscriber prior to age 60, the spouse has the option to continue the vested contribution in hisor her name for the remaining time in the APY account until the original subscriber reaches age 60. In the event of death, the beneficiary's spouse is entitled to the same pension amount that the beneficiary was entitled to. Or, the entire accumulated balance of the APY account is returned to the spouse/nominee.

According to a recent study, as of March 31, 2023, there were more than 5.20 crore persons registered for the Atal Pension Yojana. Over 1.19 crore new subscribers joined the scheme in the fiscal year 2022–23, an increase of more than 20% from the 99 lakh in the prior financial year. Since its establishment, the scheme has managed more than Rs. 27,200 crore in assets and generated an investment return of 8.69%.