Atal Pension Yojana

Atal Pension Yojana (APY) is a pension program primarily targeting the poor and the underprivileged citizens working in the unorganised sector. It allows them to join the National Pension Scheme (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA) and guarantees a minimum pension to all subscribers after they have attained the age of 60 years.

Key Points:
Launch Date: 9th May 2015
Ministry: Ministry of Finance
Replaces: Swavalamban Scheme

Important Questions related to Atal Pension Yojana

Who launched Atal Pension Yojana?

Prime minister Narendra Modi launched Atal Pension Yojana on 9th May 2015.

Who can join Atal Pension Yojana?

Any citizen of India can join the APY scheme. The following are the eligibility criteria:
1. The subscriber should be between the age of 18 – 40.
2. They should have a savings bank account or a post office savings bank account.

How much pension do the subscribers receive under APY?

Subscribers would receive the guaranteed minimum monthly pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 or Rs. 5,000 at the age of 60 years onwards, depending on the contributions by the subscribers.

What is the benefit of joining the APY scheme?

The Government guarantees the minimum pension, i.e., if the accumulated corpus based on contributions earns a lower than estimated return on investment and is inadequate to provide the minimum guaranteed pension, the Central Government would fund such inadequacy. Alternatively, if the returns on investment are higher, the subscribers would get enhanced pensionary benefits.

Who will get the pension and other benefits under the Atal Pension Yojna?

Upon completion of 60 years, the subscriber will get the guaranteed minimum monthly pension or higher monthly pension if investment returns are higher than the guaranteed returns embedded in APY. The same amount of monthly pension is payable to the spouse (default nominee) upon the death of the subscriber.

The nominee will be eligible for the return of pension wealth accumulated till age 60 of the subscriber upon the death of both the subscriber and spouse.

What happens in case of premature death of a subscriber before 60 years under APY?

In the event of premature death (before 60 years) of the subscriber, the Government has decided to give an option to the spouse of the subscriber to continue contributing to the APY account of the subscriber for the remaining vesting period till the original subscriber would have attained the age of 60 years. The subscriber’s spouse shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse.

Can subscribers exit the Atal Pension Yojna before the age of 60 years?

Voluntary exit in APY is permitted. In case a subscriber, who has availed Government co-contribution under APY, chooses to exit APY at a future date voluntarily, he shall only be refunded the contributions made by him to APY, along with the net actual accrued income earned on his contributions (after deducting the account maintenance charges). The Government co-contribution, and the accumulated income earned on the Government co-contribution, shall not be returned to such subscribers.