India has million of people working in unorganised sector and will not get any pension. To overcome this, Atal Pension Yojna (APY) is scheduled to be launched from June 1 2015 with focus on the unorganised sector. As per this scheme, the person will receive pension according to the contribution while earning.
Features of Atal Pension Yojna
Anyone working in unorganised sector and between the age of 18 and 40 is eligible for opting for this scheme. Aprt from this one need to have a bank account in his or her name.
The Pension will be received at the age of 60 years and the pension amount will range between Rs. 1000 to Rs 5000. The contribution is required to be made till 60 years of age.
The Government will contribute the lower of 50 per cent of individual contribution or Rs 1,000 per annum for the period of 5 years i.e. from 2015-16 to 2019-20. It is important to note that the benefit of government’s contribution can be availed by those who subscribe to the scheme before December 31, 2015.
In this scheme, the monthly contribution would auto debited from bank account. However, the subscriber should ensure that the Bank account to be funded enough. There is a provision for penalty in case of delay in contributions. The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.
Rs 1 per month for contribution upto Rs. 100 per month.
Rs 2 per month for contribution upto Rs. 101 to 500 per month.
Rs 5 per month for contribution between Rs 501 to 1000 per month.
Rs 10 per month for contribution beyond Rs 1001 per month.
In case of discontinuation of payments of contribution amount shall lead to following:
After 6 months account will be frozen.
After 12 months account will be deactivated.
After 24 months account will be closed.
Exiting from Atal Pension Yojna
How to opt for Atal Pension Scheme
One may enrol at all Points of Presence (Service Providers) and Aggregators under Swavalamban Scheme through setup of National Pension System.
The Table of contribution levels, fixed monthly pension to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period is given below.
if person joined Atal Pension Yojna at 35 years, he will contribute till age of 60 years ie 25 years.
If he wants monthly pension of Rs 1000 he would contribute Rs 181 a month. On his death his wife would get Rs 1000 per month and after her death the nominees will get 1.7 lakh.
If he wants monthly pension of Rs 3000 he would contribute Rs 543 a month. On his death his wife would get Rs 3000 per month and after her death the nominees will get 5.1 lakh.
If he joins at the age of 18 years to get a fixed monthly pension of Rs. 1,000 per month, the subscriber has to contribute on monthly basis Rs. 42 for Rs 5000 pension he has to contribute Rs. 210.
if he joins at the age of 40 years to get a fixed monthly pension of Rs. 1,000 per month, the subscriber has to contribute on monthly basis Rs. 291 and for Rs 5000 pension he has to contribute Rs. 1,454
Age of Joining Years of Contribution Indicative Monthly Contribution for Monthly Pension of Rs 1000 and Corpus of Rs 1.7 Lakh(in Rs.) Indicative Monthly Contribution for Monthly Pension of Rs 2000and Corpus of Rs 3.4 Lakh(in Rs.) Indicative Monthly Contribution for Monthly Pension of Rs 3000 and and Corpus of Rs 5.1 Lakh(in Rs.) Indicative Monthly Contribution for Monthly Pension of Rs 4000 and Corpus of Rs 6.8 Lakh(in Rs.) Indicative Monthly Contribution for Monthly Pension of Rs 5000 and Corpus of Rs 8.5 Lakh(in Rs.)
18 42 42 84 126 168 210
20 40 50 100 150 198 248
25 35 76 151 226 301 376
30 30 116 231 347 462 577
35 25 181 362 543 722 902
40 20 291 582 873 1164 1,454
Atal Pension Yojana (APY) and Swavalamban Yojana NPS Lite
Atal Pension Yojana (APY), will replace the previous government’s Swavalamban Yojana NPS Lite, which did not find much acceptance among people. The existing subscribers of Swavalamban Scheme would be automatically migrated to APY, unless they opt out. It is Government of India Scheme, which is administered by the Pension Fund Regulatory and Development Authority. The Institutional Architecture of NPS would be utilised to enrol subscribers under APY.
Our article National Pension Scheme covers NPS in detail including details of Swavalamban Yojana NPS Lite . Quoting from it .
Swavalamban scheme or the NPS Lite :is the extension of the variant available to the government employees. The government contributes Rs 1,000 per year to the pension account in NPS Lite, making pension possible for the economically-disadvantaged. Under the scheme, Govt. will contribute Rs.1000 per year to each NPS account opened in the year 2010-11 and for the next three years, that is, 2011-12, 2012-13 and 2013-14. As a special case and in recognition of their faith in the NPS, all NPS accounts opened in 2009-10 will be entitled to the benefit of Government contribution if they fulfil the eligibility criteria prescribed under these guidelines.
How to open Atal Pension Yojna Account
One has to Contact Bank branches under core banking platform and fill in the Atal Pension Yojana subscriber registration form in English (pdf) or Hindi(pdf)
If one has a Bank Account
Submit the APY Form
Provide Aadhaar No and Mobile Number
Deposit the initial contribution according to the type of pension opted.
If one does not have a Bank Account
Provide KYC Documents and open a Bank account by providing KYC document and Aadhaar
Submit a signed APY proposal form
It’s Mandatory to provide
Savings Bank account details, mobile number and authorization letter to the bank for the monthly auto debit option for remittance of contribution. •
Spouse/Nominee details in APY form
Charges for not paying Monthly Contributions
On attaining the age of 60 years: The exit from APY is permitted at the age with 100% annuitisation of pension wealth. On exit, pension would be available to the subscriber.
In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
Exit Before the age of 60 Years: Exit before 60 years of age is not permitted however it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.
