Context:
Marking its 10th anniversary, the Atal Pension Yojana (APY) has surpassed 8 crore enrollments, with 39 lakh new subscribers joining in the current financial year alone.

What is Atal Pension Yojana (APY)?

Atal Pension Yojana is a government-sponsored pension scheme designed to provide financial security and a guaranteed monthly pension to workers in India’s unorganised sector upon retirement. The scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA).

Scheme Highlights:

• Launch Date: 9th May 2015
• Administered by: Pension Fund Regulatory and Development Authority (PFRDA)
• Target Beneficiaries: Workers in the unorganised sector
• Scheme Type: Voluntary and contributory
• Pension Amount: ?1,000 to ?5,000 per month after the age of 60
• Guarantee: Minimum pension guaranteed by the Central Government

Objectives of APY:

• Establish a universal social security net for all
• Ensure financial stability during old age for informal workers
• Promote a habit of long-term savings among workers in the unorganised sector

Eligibility:

• Indian citizens aged between 18 and 40 years
• Must have a savings or post office bank account
• Aadhaar and mobile number are optional but recommended for communication
• Government co-contribution applicable only to non-taxpayers not covered under other statutory social security schemes

Key Features:

• Guaranteed Minimum Pension: Between ?1,000 and ?5,000 monthly, depending on contribution and age at entry
• Flexible Contribution Options: Subscribers can pay monthly, quarterly, or half-yearly through auto-debit from their bank account
• Government Co-Contribution (2015–2020): The Government of India contributed 50% of the subscriber’s contribution, up to ?1,000 annually, for eligible early joiners
• Return Guarantee: If investment returns fall short of the promised pension, the government covers the difference
• Family Benefits: After the subscriber’s death, the spouse continues to receive the pension, and in the event of both their deaths, the accumulated corpus is paid to the nominee

Exit Provisions:

• Pension benefits commence at age 60
• Early exit allowed with partial refund of contributions
• If the subscriber dies before 60, the spouse may continue the pension or withdraw the corpus

Source: DC