Atal Pension Yojana Eligibility, Features And All Details

Key Points About Atal Pension Yojana

1. Launch and Management

• Atal Pension Yojana (APY) began on May 9, 2015, replacing the Swavalamban Yojana.
• Managed by the Pension Fund Regulatory and Development Authority (PFRDA) through the National Pension System (NPS), initially launched in 2004 for government employees.

2. Eligibility

• Open to all Indian citizens aged 18 to 65, both residents and non-residents.
• Over 2.5 crore people have already subscribed to APY.

3. Contributions

• Monthly contributions vary based on the subscriber's age and chosen amount.
• Joining early results in lower monthly payments compared to joining later.

4. Bank Account and Auto-Debit

• APY participants must have a savings bank account.
• Auto-debit facility activation is mandatory, reducing contribution collection charges.

Atal Pension Yojana Eligibility Criteria

• Subscribers must not be part of any statutory social security scheme.
• Citizens aged 18 to 40 with a savings bank account can join.
• Aadhar card and bank account linkage are necessary.

Atal Pension Yojana Benefits

• Provides fixed pension amounts (Rs 1000 to Rs 5000) to subscribers aged 60 and above.
• Spouses receive benefits in case of the subscriber's demise.
• Nominee selection allows the pension to be returned in case of the spouse's death.
• Aims to address the needs of elderly individuals, contributing to happiness and fulfilling medical care requirements.
• Tax benefits are available, similar to the National Pension System.

Atal Pension Yojana Scheme Features

• Administered by PFRDA through the National Pension System.
• Open to all Indian citizens.
• Minimum contribution period is 20 years.
• Contributions can be made monthly, quarterly, or half-yearly.
• Lower contributions for early joiners; higher for those joining later.
• In case of premature subscriber death, the spouse can continue contributions until the original subscriber would have turned 60.
• Guaranteed minimum monthly pensions based on the subscriber's contribution.
• Same pension provided to the spouse after the subscriber's death.
• Nominees receive indicative pension wealth after the death of both the subscriber and spouse.
• Tax benefits include an additional deduction of Rs. 50,000 under section 80CCD(1).
• Timely payments are crucial to avoid late payment penalties, with the due date depending on the first contribution date.

Atal Pension Yojana Scheme Funding

Under Atal Pension Yojana, the government gives a fixed pension. If you join between 2015-16 and 2019-20, the government also chips in 50% of what you contribute, up to Rs. 1000 per year for 5 years. This means extra help from the government to boost your pension.

Atal Pension Yojana Eligibility and Nominee Concept

If you joined Atal Pension Yojana before March 31, 2016, don't pay income tax, and aren't part of any social security scheme, you qualify. If something happens to you, like passing away, your nominees will get what you put in, the fixed monthly pension, and some extra savings.

Atal Pension Yojana Age and Contribution

If you start at 18, you can get a pension between Rs. 1000 and Rs. 5000 each month by putting in Rs. 42 to Rs. 210 every month. Joining at 40? Your contribution will be between Rs. 291 and Rs. 1454 for the same pension levels.

Comparison with PM Shram Yogi Mandhan Yojana

• Pension Amounts: Atal Pension Yojana gives a max of Rs. 5000, while Pradhan Mantri Shram Yogi Mandhan Yojana gives Rs. 3000.
• Spouse Benefits: In Atal Pension Yojana, the spouse gets the full payment after you turn 60, while in the other scheme, it's only 50%.
• Money After Both Pass Away: In Atal Pension Yojana, the nominee gets the money, but in Pradhan Mantri Shram Yogi Mandhan Yojana, it goes to the National Corpus Fund.

Similarities with Pradhan Mantri Shram Yogi Mandhan Yojana

Both plans are for people in jobs without a fixed structure. If you're already getting benefits from the Employee Provident Fund or the National Pension Scheme, you can't join either.

Current Status of Atal Pension Yojana

Out of 4.2 crores of National Pension System subscribers, more than 66%, or 2.8 crores, chose Atal Pension Yojana by the end of 2020–21. In all states and UTs, more men than women are enrolled, with a ratio of 57:43.

Atal Pension Yojana Achievements

Atal Pension Yojana has had a successful five-year journey, with a total of 2,23,54,028 people joining the plan by May 9, 2020.

• In the first two years, almost 50 lac subscribers signed up, and this number doubled to 100 lac in the third year. By the fourth year, it reached 1.50 crore subscribers.
• In the previous financial year, 2020, about 70 lac more participants joined the scheme.
• Besides the impressive numbers, the program is now active across the country, with more men than women joining, maintaining a ratio of 57:43 in all states and union territories.

• The combined total of NPS and Atal Pension Yojana subscribers has now gone beyond 3.46 crores as of April 30, 2020.