Atal Pension Yojana
About
- Atal Pension Yojana (APY) is a voluntary, contributory pension scheme launched by the Government of India in 2015 with the objective of creating a universal social security system for all Indians, especially the poor, the underprivileged and the workers in the unorganized sector.
Salient Features of APY
- Atal Pension Yojana (APY) is a voluntary, contributory pension scheme launched by the Government of India in 2015 with the objective of creating a universal social security system for all Indians, especially the poor, the underprivileged and the workers in the unorganized sector.
1. Target Group:
- Aimed at workers in the unorganised sector, who often lack formal pension coverage.
- Initially available to all citizens of India between 18 and 40 years of age.
- With effect from 1st October 2022, individuals paying income tax are not eligible to join the scheme.
2. Defined Pension Benefit:
- Guaranteed minimum pension at the age of 60 years ranging between Rs.1000 to Rs. 5000, depending on the contributions by the subscribers.
- The minimum pension is guaranteed by the Government in the sense that if the actual realized returns on the pension contributions are less than the assumed returns for minimum guaranteed pension, such shortfall shall be funded by the Government.
- On the other hand, if the actual returns on the pension contributions are higher than the assumed returns for minimum guaranteed pension, such enhanced scheme benefits shall be passed on to the subscribers.
3. Administering Body:
- Pension Fund Regulatory and Development Authority (PFRDA)
- PFRDA is a statutory regulatory body established in 2003 to promote, develop and regulate the pension sector in India.
4. Other Key Features:
- There is no restriction on the number of persons in a family who can join APY.
- The same pension is payable to spouse after death of Subscriber.