Atal Pension Yojana: Benefits, Eligibility, Age Limit, Start Date
In the union budget 2015-2016, Finance minister of India Shri. Arun Jaitely announced three schemes under the universal social security initiatives in order to encourage and provide security to the poor people as follows:
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Read details here.
- Pradhan Mantri Suraksha Bima Yojana (PMSBY). Read details here.
- Atal Pension Yojana (APY)
Features of APY
- If a person under unorganised sector feels insecure towards the post retirement income, then APY will bring a big relief for them and their family. Few of the unorganised sector in India are forest workers, fisherman, contract and labours of small scale industry and many more.
- By enrolling in this scheme, subscribers will get monthly pension after he/she reaches the age of 60 years.
Latest update on APY as on 23Feb2016:
- As per government notification, there won’t be any tax on the amount deposited under APY and can be claimed under the section 80CCD.
- Over 20 lakh individuals have been enrolled under the scheme so far.
- Over 328 Crore has been deposited till now.
- The scheme benefits can be availed only by the citizens of unorganised sector.
- Bank account in must to get enrolled under APY. If you do not have any bank account then you can open zero balance savings account under Pradhan Mantri Jan Dhan Yojana.
- Individual will have to join National Pension System (NPS) administered by Pension Fund Regulatory and Development Authority (PFRDA) in order to get benefits under this scheme
- Subscriber can contribute every month/quarter/half yearly in order to receive monthly pension after 60 years.
- Sooner someone joins, lower would be the contribution to be made and vice versa.
Age limit for joining
To join APY, an individual’s minimum age should be 18 years and maximum age should be 40 years. This means that contribution should be done for 20 years when someone joins at the age of 40 years and 42 years when someone joins at the age of 18 years. Check out APY registration form.
Benefits of Atal Pension Yojana:
- Subscribers of APY will get monthly pension after they reach the age of 60 years. If someone joins at the age of 18 years and contributes Rs.42 till he reaches 60 years, then monthly pension received would be Rs. 1,000.
- Pension amount will range from Rs.1,000 – Rs. 5,000.
- Auto-debit facility will also be provided. With this monthly contribution would be automatically debited from the subscriber’s account.
- In case of death of the pensioner (father), the monthly pension would continue to be paid to the wife. And to the child (if both father and mother die).
Where to make contribution or get enrolled:
- All points of presence (service providers) – banks
- Aggregators under Swavlamban Scheme
What is government’s contribution: Co-contribution of 50% of the total contribution. Or Rs. 1,000 annually whichever is lower to each subscriber. However, this contribution will be made only for 5 years i.e. till 2019-2020 provided someone joins between 01June 2015 – 31st December 2015.
When will the scheme start: 1st June 2015
Last date of enrollment: 31st December 2015. If someone joins APY after this last date, then government contribution will not be made.
Who cannot join Atal Pension Yojana: Individuals falling under following categories are not eligible to join APY:
- If someone is getting benefit under any other social security scheme
- If he/she is paying income tax