Key features of Atal Pension Yojana
- Atal Pension Yojana is a flagship social security scheme of Ministry of Finance.
- It was launched in 2015 by replacing the Swavalamban Yojana / NPS Lite scheme.
- It 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 age of the subscriber should be between 18-40 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more.
- It is administered by Pension Fund Regulatory and Development Authority (PFRDA) through National Pension System (NPS).
- As of 2020, the male to female subscription ratio of 57:43.
- Also, only 5% of the eligible population was covered under APY till 2020.
Benefits under APY
- It provides fixed pension for the subscribers ranging between 1000 to Rs. 5000.
- The contribution levels would depend on the time the subscriber joins the scheme.
- For example, if the subscriber joins the scheme in 18 years of age and has subscribed for a fixed monthly pension of Rs. 1,000 per month, he/she shall have to contribute Rs. 42 per month. The contribution, however, would increase to Rs 291—for the same fixed pension—if the subscriber joins the scheme at 40 years of age.
- The same pension is payable to Spouse after death of Subscriber.
- Contributions to the Atal Pension Yojana (APY) is eligible for tax benefits similar to the National Pension System (NPS).
- APY is open to all bank account holders who are not members of any statutory social security scheme.
- Any individual who is eligible to receive benefits under the APY will have to furnish proof of possession of Aadhaar number or undergo enrolment under Aadhaar authentication.
- Central Government’s co-contribute 50% of the subscriber’s contribution upto Rs. 1000 per annum, for a period of 5 years, i.e., from 2015-16 to 2019-20.
Also Read: Atal Bimit Vyakti Kalyan Yojana