Atal Pension Yojna
The Government of India has announced a new scheme called Atal Pension Yojana (APY). It is a guaranteed pension scheme which is administered by the Pension Fund Regulatory and Development Authority (PFRDA).
The Pension Fund Regulatory and Development Authority (PFRDA) is a pension regulatory authority which was established byGovernment of India on August 23, 2003. PFRDA is authorized by Ministry of Finance, Department of Financial Services. PFRDA promotes old age income security by establishing, developing and regulating pension funds and protects the interests of subscribers to schemes of pension funds and related matters.
Features of APY :
- APY is a voluntary, periodic contribution based pension system, under which the subscriber would receive the following benefits:
- (i) Central Government guaranteed minimum pension amount : Each subscriber under APY shall receive a Central Government guaranteed minimum pension of Rs. 1000 per month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month, after the age of 60 years until death.
- (ii) Central Government guaranteed minimum pension amount to the spouse : After the subscriber’s demise, the spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse.
- (iii) Return of the pension wealth to the nominee of the subscriber : After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age 60 of the subscriber.
- Government of India (GoI) will also co-contribute 50% of the subscriber’s contribution or Rs. 1,000 per annum, whichever is lower. The Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not an Income Tax payer.
- The Exit before age 60 would be permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.