Atal Pension Yojana
Atal Pension Yojana. A Central government scheme tried to address the longevity risks among the workers in unorganised sector, encouraging them to...
A Central government scheme tried to address the longevity risks among the workers in unorganised sector, encouraging them to voluntarily save for their retirement. They constitute 88% of the total labour force of 47.29 crore as per the 66th Round of NSSO Survey of 2011-12, but do not have any formal pension provision. Keeping this in view, the Centre started the Swavalamban Scheme in 2010-11. However, coverage under Swavalamban Scheme was inadequate mainly due to lack of clarity of pension benefits at the age after 60.
Concerned over the old age income security of the working poor and with a view to encouraging and enabling them to join the National Pension System (NPS), the Government of India announced a new initiative called Atal Pension Yojana (APY) in the Budget for 2015-16. The APY will be focussed on all citizens in the unorganised sector, who join the NPS – administered by the Pension Fund Regulatory and Development Authority (PFRDA) – and who are not members of any statutory social security scheme.
Under the APY, the subscribers would receive the fixed pension of Rs 1,000 per month, Rs 2000 per month, Rs 3000 per month, Rs 4000 per month, Rs 5000 per month, at the age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY. The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more. The benefit of fixed pension would be guaranteed by the Government.
The Central Government would also co-contribute 50% of the subscriber’s contribution or Rs 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, i.e., from 2015-16 to 2019-20, who join the NPS before 31st December, 2015 and who are not income tax payers. The APY would be launched from 1st June, 2015. The existing subscribers of Swavalamban Scheme would be automatically migrated to APY, unless they opt out.