Context: Recently, the Ministry of Finance has provided that Atal Pension Yojana has successfully completed its 5 years with a remarkable feat of 2.23 crore enrolment.
Key Points

• The scheme was launched on 9th May, 2015, with the objective of creating a universal social security system for all Indians, especially the poor, the under-privileged and the workers in the unorganised sector.
• It was announced in Budget 2015-16 as an upgrade to the Swavalamban scheme, which was developed into the new defined benefit pension scheme for the poor.
• It is administered by Pension Fund Regulatory and Development Authority (PFRDA).
• It is open to all bank account holders in the age group of 18 to 40 years and the contributions differ, based on pension amount chosen.
• The subscribers of the scheme would receive the guaranteed minimum monthly pension of Rs.1000 or Rs.2000 or Rs.3000 or Rs.4000 or Rs.5000 at the age of 60 years.
• The minimum pension would be guaranteed by the Government, i.e., if the accumulated corpus based on contributions earns a lower than estimated return on investment.
• The scheme has been implemented comprehensively across the country covering all states and Union Territories with male to female subscription ratio of 57:43.
• However, only 5% of the eligible population has been covered under APY till date.

Importance of Atal Pension Yojana

• It aims to protect the employees of unorganized sector who are not protected under any social security schemes.
• It is very simply structured, which makes it easy to understand for anyone who wants to open an account under the scheme.
• It provides a minimum guaranteed pension ranging from Rs 1000 to Rs 5000 on attaining 60 years of age.
• The amount of pension is guaranteed for lifetime to the spouse on death of the subscriber.
• In the event of death of both the subscriber and the spouse, the entire pension corpus is paid to the nominee.
• Contributions to the Atal Pension Yojana (APY) are eligible for tax benefits similar to the National Pension System (NPS).

About Pension Fund Regulatory and Development Authority (PFRDA)

• It is the statutory authority established by an enactment of the Parliament.
• It aims to regulate, promote and ensure orderly growth of the National Pension System (NPS) and pension schemes to which this Act applies.
• NPS was initially notified for central government employees recruits w.e.f. 1st Jan 2004 and subsequently adopted by almost all State Governments for its employees.
• NPS was extended to all Indian citizens (resident/non-resident/overseas) on a voluntary basis and to corporates for its employees.