Source: DC
Context: The Atal Pension Yojana (APY) has crossed 8 crore enrolments as it celebrates its 10th anniversary, with 39 lakh new subscribers added in the current financial year.
About Atal Pension Yojana (APY):
Atal Pension Yojana (APY) is a government-backed pension scheme aimed at providing old-age income security to workers in the unorganised sector. It ensures a guaranteed monthly pension post-retirement and is administered by the Pension Fund Regulatory and Development Authority (PFRDA).
Scheme Overview:
- Launched On: 9th May 2015
- Administered By: PFRDA
- Target Group: Workers in the unorganised sector.
- Nature: Voluntary and contributory.
- Pension Range: ₹1,000 to ₹5,000/month after age 60.
- Guarantee: Central Government guarantees the minimum pension.
Objective of APY:
- To build a universal social security system.
- To provide financial stability during old age.
- To encourage long-term savings among informal sector workers.
Eligibility Criteria:
- Indian citizen, aged between 18–40 years.
- Must hold a savings or post office bank account.
- Aadhaar and mobile number optional but recommended for updates.
- Government co-contribution only for non-taxpayers and those not under other statutory social security schemes.
Key Features of APY:
- Guaranteed Minimum Pension: Assured pension of ₹1,000–₹5,000 based on contribution and entry age.
- Flexible Contribution Mode: Contributions can be made monthly, quarterly, or half-yearly via auto-debit from a savings account.
- Government Co-Contribution (2015–2020): GoI contributed 50% of subscriber’s input (up to ₹1,000/year) for eligible early joiners.
- Return Assurance: If actual returns fall short of the guaranteed pension, the shortfall is covered by GoI.
- Spouse and Nominee Benefits: Pension continues to spouse after subscriber’s death and corpus is transferred to nominee on death of both.
- Exit Rules:
- Full pension starts at age 60 and early exit allowed with limited refund.
- In case of death before 60, spouse can continue or withdraw corpus.
