Atal Pension Yojana APY – Central Government Pension Scheme: Atal Pension Yojana (APY), a Central Government Pension Scheme was launched. APY is open to all saving bank/post office saving bank account holders in the age group of 18 to 40 years and the contributions differ, based on pension amount chosen. Subscribers would receive the guaranteed minimum monthly pension of Rs. 1,000 or Rs. 2,000 or Rs. 3,000 or Rs. 4,000 or Rs. 5,000 at the age of 60 years.
Under APY, the monthly pension would be available to the subscriber, and after him to his spouse and after their death, the pension corpus, as accumulated at age 60 of the subscriber, would be returned to the nominee of the subscriber. The minimum pension would be guaranteed by the Government.
A Central Government Pension Scheme Atal Pension Yojana APY Launched
Atal Pension Yojana (APY) addresses the old age income security of the working poor and the longevity risks among the workers in unorganised sector. It encourages the workers in unorganised sector to voluntarily save for their retirement. The Government had launched the scheme. The scheme replaces the Swavalamban Yojana / NPS Lite scheme.
Benefits of Central Government Pension Scheme Atal Pension Yojana APY
- The benefit of minimum pension is guaranteed by the Government of India. For the minimum guaranteed pension, In case the actual realized returns on the pension contributions are less than the assumed returns, the shortfall is funded by the Government of India. On the other hand, in case the actual realized returns on the pension contributions are higher than the assumed returns, such higher scheme benefit shall be passed on to the subscribers.
- You can choose the minimum pension amount from the 5 slabs available, i.e, Rs.1000, 2000, 3000, 4000, 5000/-
- The monthly pension is available to the subscriber, and after him to his spouse and after their death, the pension corpus, as accumulated at age 60 of the subscriber, would be returned to the nominee of the subscriber.
- In case of premature death of subscriber (death before 60 years of age), spouse of the subscriber can continue contribution to APY account of the subscriber, for the remaining vesting period, till the original subscriber would have attained the age of 60 year.
- Contributions to the Atal Pension Yojana (APY) is eligible for tax benefits similar to the National Pension System (NPS). The tax benefits include the additional deduction of Rs 50,000 under section 80CCD(1).
Age of Joining, Contribution Levels, Fixed Monthly Pension and Return
fixed monthly pension to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period. to get a fixed monthly pension between Rs. 1,000 per month and Rs. 5,000 per month, the subscriber has to contribute on monthly basis between Rs. 42 and Rs. 210, if he joins at the age of 18 years. For the same fixed pension levels, the contribution would range between Rs. 291 and Rs. 1,454, if the subscriber joins at the age of 40 years.
Exit and Withdrawal Options
- Exit at age 60: Full pension begins.
- Exit before age 60: Permitted only in cases of death or terminal illness.
- Voluntary Exit: Allowed, but the subscriber only receives the contribution made (with interest) and government co-contribution (if any) is forfeited.
Extra Benefits of Atal Pension Yojona (APY)
In the event of pre-mature death of the subscriber, Government has decided to give an option to the spouse of the subscriber to continue contributing to APY account of the subscriber, for the remaining vesting period, till the original subscriber would have attained the age of 60 years. 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. After the death 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.