Atal Pension Yojana (APY)
Atal Pension Yojana is a pension scheme for the unorganised sector that provides a defined pension, depending on the contribution and the period of contribution. Government contributes 50% of the beneficiaries’ premium limited to Rs.1,000 each year, for five years, in the new accounts opened before 31st December 2015.
The Scheme focuses on the unorganized sector where nearly 400 million employees representing more than 80 per cent of all employees are engaged. Atal Pension Yojana would provide a fixed minimum pension Rs.1000 to Rs.5000 per month starting from the age of 60. The amount of pension will depend on the monthly contribution by the employee and the age at which the employee subscribes to the scheme. In any case, the individual will have to subscribe under Atal Pension Yojana for a minimum of 20 years.
The scheme is aimed at those who are not members of any statutory social security scheme and who are not Income Tax payers.
The pension would also be available to the spouse on the death of the subscriber and thereafter, the pension corpus would be returned to the nominee. The minimum age of joining APY is 18 years and maximum age is 40 years. The benefit of fixed minimum pension would be guaranteed by the Government.
The scheme was launched in simultaneous functions held at 115 venues across the country on 9 May 2015. The most significant part of this Scheme is co-contribution by government of Rs.1000/- per annum or 50% of the total contribution whichever is lower, for the first 5 years if one joins the scheme before the end of the first year of its launch, that is 31 December, 2015.
More details may be seen here.