All about Atal Pension Yojana (A Government of India Guaranteed Pension Scheme)

Introduction : Atal Pension Yojana (APY) is a Government of India scheme administered by Pension Fund Regulatory and Development Authority (PFRDA) through National Pension Scheme (NPS). The major objective of the scheme is to encourage the person to save small amount during their productive years to enable them to draw a pension in old age. This scheme is based on defined benefit for providing fixed minimum pension ranging from ` 1000 to ` 5000 per month. The scheme announced by Honorable Finance Minister of India Shri Arun Jaitely jee in budget 2015-16. This scheme is effective from 1^st June 2015.

Eligibility Criteria:

Any citizen of India in unorganized sector.

Age of joining 18 years to 40 years (Date of Birth proof is mandatory).

Aadhaar number to be preferred at the time of opening of Atal Pension Yojana account.

Non- Aadhaar bank account customers can also join the scheme but adhar details to be provided later.

Valid mobile number is mandatory.

Who cannot take this scheme?  The person wishing the Government co-contribution should not be covered by a social security scheme under any of the following laws and other statutory social security schemes.

Employees’ provident fund and miscellaneous provisions act 1952

The coal mines provident fund and miscellaneous provisions act 1948

The seaman’s Provident fund act 1966

The Assam tea plantations provident fund and pension fund scheme act 1955

The Jammu and Kashmir Employees provident fund act 1961

Minimum monthly Contribution Required:  Please see the Annexure -1 given in the bottom of the page.

Where to open this account : Banks are the nodal agencies for promotion and implementation of Atal Pension Yojana (All Schedule Banks only who have core banking system). Non Banks such as MFIs NBFC, Micro Insurance/MF Agent will act as business facilitators to banks sourcing Atal Pension Yojana.

How to open Atal Pension Yojana Account : The subscriber will contact bank branches under core banking platform.

A-     Bank Account Holder

Submit a signed the Atal Pension Yojana form

Provide Aadhaar Number and mobile number

Deposit the initial contribution according to the type of pension opted.

B-      Non Bank Account Holder

Provide Know Your Customer (KYC) documents and open a Bank account by providing KYC document and aadhaar

Submit a signed the Atal Pension Yojana form

Mandatory to provide Spouse/nominee  details in Atal Pension Yojana form

Receive Permanent retirement account number (PRAN) immediately

Person not having aadhaar may also open their Atal Pension Yojana account but they need to submit their aadhaar details within specified time duration.

Every subscriber will get periodical mobile alerts for subscriptions balance and credit without any charges.

Government Contribution in the Scheme:

Under the scheme Government will co-contribute to 50% of the contribution amount of individual or ` 1000 per annum whichever is lower.

Government of India co-contributes to each eligible subscriber account for a period of 5 years i.e. from 2015-16 to 2019-20. Who join on or before 31^st December 2015.

A person from unorganized sector subscribing to Atal Pension Yojana (APY) who is income tax payer will not be eligible for co-contribution of Government of India.

Penalty for delay in monthly payment:  Bank is required to collect additional amount for delayed payments such amount will vary from minimum ` 1 per month to ` 10 per month up to ` 100 per month.

` 2 per month for contribution between ` 101 to ` 500 per month.

` 5 per month for contribution between ` 501 to ` 1000 per month.

` 10 per month for contribution beyond ` 1001 per month

If amount not paid regularly in Atal Pension Yojana: if a person not contributing contribution amount then;

After three months account will be frozen

After 12 months account will be deactivated

After 24 months account will be closed

Repeated defaults: - The Atal Pension Yojana account will be closed and Government co-contribution will be forfeited with penalty. Subscriber contribution can be withdrawn as lump sum.

Where will your subscriptions amount under Atal Pension Yojana be invested :

Government Security – minimum 45% and up to 50%

Debt Securities and term Deposits of Banks – minimum 35% and up to 45%

Money market instruments – up to 5%

Equity and related instrument – minimum 5% and up to 15%

Asset backed securities etc – up to 5%

When Exit/Withdrawal from Atal Pension Yojana:

A.      On attaining the age of 60 years – the exit from Atal Pension Yojana is permitted at the age with 100% annuitisation of pension wealth. On exit, pension would be available to the subscriber.

B.      In case of death of subscribers due to any case -  Incase of death of subscribers pension would be available to the spouse and on the death of both of them (subscribers & spouse). The pension corpus would be returned to their nominee.

C.      Exit before of Age 60 years :- the exit before of age 60  would be permitted only in exceptional circumstances i.e. in the event of the death of beneficiary or terminal disease.

Central Record Agency (CRA) : National Securities Depository Limited (NSDL) has been appointed as the CRA under the architecture of National Pension Scheme. He will,

Keep the all record related to Atal Pension Yojana

Administration to the Atal Pension Yojana

Customer Service functions for all subscriber

Don’t be hesitate because for opening your bank account bank will get Rs. 120/- per account incentive.

Important Website

Government of India – www.India.gov.in

Prime Minister of India Official website – www.pmindia.gov.in

Pension Fund Regulatory Development Authority – www.pfrda.org.in

Central Recordkeeping Agency (Transactional Website) – http://cre.nsdl.com

Central Recordkeeping Agency (Business Website) – www.npscra.nsdl.co.in

Toll free number

a.       CRA – 1800222080,

b.      NPS Helpdesk - 1800110708

Indicative Atal Pension Yojana Contribution Chart - Age wise   Annexure -1
Age of Entry	Years of Contribution	Monthly Pension of Rs. 1000	Monthly Pension of Rs. 2000	Monthly Pension of Rs. 3000	Monthly Pension of Rs. 4000	Monthly Pension of Rs. 5000
18	42	42	84	126	168	210
19	41	46	92	138	183	228
20	40	50	100	150	198	248
21	39	54	108	162	215	269
22	38	59	117	177	234	292
23	37	64	127	192	254	318
24	36	70	139	208	277	346
25	35	76	151	226	301	376
26	34	82	164	246	327	409
27	33	90	178	268	356	446
28	32	97	194	292	388	485
29	31	106	212	318	423	529
30	30	116	231	347	462	577
31	29	126	252	379	504	630
32	28	138	276	414	551	689
33	27	151	302	453	602	752
34	26	165	330	495	659	824
35	25	181	362	543	722	902
36	24	198	396	594	792	990
37	23	218	436	654	870	1087
38	22	240	480	720	957	1196
39	21	264	528	792	1054	1318
40	20	291	582	873	1164	1454