TMI BlogIntroduction of the Atal Pension YojanaX X X X Extracts X X X X X X X X Extracts X X X X ..... Introduction of the Atal Pension Yojana - News and Press Release Dated:- 2-3-2015 - News - The Government of India is extremely concerned about the old age income security of the working poor and is focused on encouraging and enabling them to join the National Pension System (NPS). To address the longevity risks among the workers in unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement, who constitute 88% of the total labour force of 47.29 crore as per the 66 th Round of NSSO Survey of 2011-12, but do not have any formal pension provision, the Government had started the Swavalamban Scheme in 2010-11. However, coverage under Swavalamban Scheme is inadequate mainly due to lack of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... larity of pension benefits at the age after 60. 2. The Finance Minister has, therefore, announced a new initiative called Atal Pension Yojana (APY) in his Budget Speech for 2015-16. The APY will be focussed on all citizens in the unorganised sector, who join the National Pension System (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. 1000 per month, ₹ 2000 per month, ₹ 3000 per month, ₹ 4000 per month, ₹ 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 min ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imum 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 ₹ 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 31 st December, 2015 and who are not income tax payers. The APY would be launched from 1 st June, 2015. The existing subscribers of Swavalamban Scheme would be automatically migrated to APY, unless they opt out. 3. A copy of the Note on APY is enclosed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Note on Atal Pension Yojana Benefit of APY: Fixed pension for the subscribers ranging between ₹ 1000 to ₹ 5000, if he joins and contributes between the age of 18 years and 40 years. The contribution levels would vary and would be low if subscriber joins early and increase if he joins late. Eligibility for APY: Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme. Age of joining and contribution period: 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. Focus of APY: Mainly targeted at unorganised sector ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... workers. Enrolment and Subscriber Payment: All bank account holders under the eligible category may join APY with auto-debit facility to accounts, leading to reduction in contribution collection charges. Enrolment agencies: All Points of Presence (Service Providers) and Aggregators under Swavalamban Scheme would enrol subscribers through architecture of National Pension System. Operational Framework of APY: It is Government of India Scheme, which is administered by the Pension Fund Regulatory and Development Authority. The Institutional Architecture of NPS would be utilised to enrol subscribers under APY. Funding of APY: Government would provide (i) fixed pension guarantee for the subscribers; (ii) would co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -contribute 50% of the subscriber contribution or ₹ 1000 per annum, whichever is lower, to eligible subscribers; and (iii) would also reimburse the promotional and development activities including incentive to the contribution collection agencies to encourage people to join the APY. Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of Corpus to the nominee of subscribers The Table of contribution levels, fixed monthly pension to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period is given below. For example, to get a fixed monthly pension between Rs. 1,000 per month and ₹ 5,000 per month, the subscriber has to contribute on monthly basis between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 42 and ₹ 210, if he joins at the age of 18 years. For the same fixed pension levels, the contribution would range between Rs. 291 and ₹ 1,454, if the subscriber joins at the age of 40 years. Table of contribution levels, fixed monthly pension of ₹ 1,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 42 42 1,000 1.7 Lakh 20 40 50 1,000 1.7 Lakh 25 35 76 1,000 1.7 Lakh 30 30 116 1,000 1.7 Lakh 35 25 181 1,000 1.7 Lakh 40 20 291 1,000 1.7 Lakh Table of contribution levels, fixed monthly pension of ₹ 2,000 per month to subscribers and his s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) 18 42 84 2,000 3.4 lakh 20 40 100 2,000 3.4 lakh 25 35 151 2,000 3.4 lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30 30 231 2,000 3.4 lakh 35 25 362 2,000 3.4 lakh 40 20 582 2,000 3.4 lakh Table of contribution levels, fixed monthly pension of ₹ 3,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) 18 42 126 3,000 5.1 Lakh 20 40 150 3,000 5.1 Lakh 25 35 226 3,000 5.1 Lakh 30 30 347 3,000 5.1 Lakh 35 25 543 3,000 5.1 Lakh 40 20 873 3,000 5.1 Lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Table of contribution levels, fixed monthly pension of ₹ 4,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana Age of Joining Years of Contribution Indicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) 18 42 168 4,000 6.8 Lakh 20 40 198 4,000 6.8 Lakh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25 35 301 4,000 6.8 Lakh 30 30 462 4,000 6.8 Lakh 35 25 722 4,000 6.8 Lakh 40 20 1164 4,000 6.8 Lakh Table of contribution levels, fixed monthly pension of ₹ 5,000 per month to subscribers and his spouse and return of corpus to nominees of subscribers and the contribution period under Atal Pension Yojana Age of Joining Years of Contribution I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndicative Monthly Contribution (in Rs.) Monthly Pension to the subscribers and his spouse (in Rs.) Indicative Return of Corpus to the nominee of the subscribers (in Rs.) 18 42 210 5,000 8.5 Lakh 20 40 248 5,000 8.5 Lakh 25 35 376 5,000 8.5 Lakh 30 30 577 5,000 8.5 Lakh 35 25 902 5,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.5 Lakh 40 20 1,454 5,000 8.5 Lakh - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... 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