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Atal Pension Yojana (APY) was commenced by the Government of India during 2015-16 budget. This scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS (National Pension System). Atal Pension Yojana has helped workers in unorganised sector to secure their post-retirement future. Atal Pension Yojana has been designed especially for workers in unorganised sectors such as personal maids, drivers, sweepers etc. The aim of this scheme is to help workers working in the unorganised sector to save money which they can use in their old age. The scheme guarantees returns post-retirement or end of the term of the policy.
APY is a regular contribution based pension plan which promises a guaranteed pension of INR 1,000/2,000/3,000/4,000 or INR 5,000. The monthly contribution will depend on the choice of pension you want and age when you enrol in the pension scheme. The pension will only start at the age of 60 years. So even if you start your contribution at the age of 40 years you will be needed to pay contribution for a minimum period of 20 years for your pension to start.
The below table explains the contribution to be made under Atal Pension Yojana for different minimum guaranteed amount of pension and different age entry.
|Age of Entry||Years of Contribution||Monthly pension of Rs. 1000.||Monthly pension of Rs. 2000||Monthly pension of Rs. 3000.||Monthly pension of Rs. 4000||Monthly pension of Rs. 5000.|
Get in touch with your bank or post office where you have a savings account. If you don't have a bank account you will have to open a bank account in order to be eligible for this scheme.
You will need to fill the Atal Pension Yojana registration form and allow the bank to auto debit your contributions in the scheme as per your payment frequency mode selected- monthly, quarterly or half yearly instalment.
Private Banks like SBI, Axis and ICICI banks are also offering online registrations in this scheme in case you are tech savvy.
Pension-drawing procedure from Atal Pension Yojana
Once you have completed the contribution term and attained the age of 60 you can get in touch with your bank or post office where you had enrolled in this pension scheme. You will need to submit the request for starting your pension. In case of death of subscriber after 60 years, the same pension amount will be payable to the spouse. If the spouse and the subscriber both die, the accumulated pension corpus will be given to the nominee.
Atal Pension Yojana does not permit to exit the scheme before the age of 60 years of subscriber under normal circumstances. Exceptional cases of terminal illness or death of the subscriber can be allowed. Even in case of death of the subscriber the spouse has the option to continue to make contributions in the scheme and get a monthly pension pay out after the term has been finished.