Atal Pension Yojana

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.

Eligibility Criteria for Atal Pension Yojana

To be eligible for these pension schemes there are 3 criteria:

You should be an Indian Citizen
You should have a bank account
You should be within the age bracket of 18 to 40 years

Monthly contribution of the Atal Pension Yojana

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.
18	42	42	84	126	168	210
19	41	46	92	138	183	228
20	40	50	100	150	198	248
21	39	54	108	162	215	269
22	38	59	117	177	234	292
23	37	64	127	192	254	318
24	36	70	139	208	277	346
25	35	76	151	226	301	376
26	34	82	164	246	327	409
27	33	90	178	268	356	446
28	32	97	194	292	388	485
29	31	106	212	318	423	529
30	30	116	231	347	462	577
31	29	126	252	379	504	630
32	28	138	276	453	551	689
33	27	151	302	414	602	752
34	26	165	330	453	659	824
35	25	181	362	495	722	902
36	24	198	396	543	792	990
37	23	218	436	594	870	1087
38	22	240	480	654	957	1196
39	21	264	528	792	1054	1318
40	20	291	582	873	1164	1454

Benefits of the Atal Pension Yojana

Provides guaranteed pension to subscribers from INR 1,000/2,000/3,000/4,000 or INR 5,000.
If higher investment returns are received then higher pension will be paid to subscribers.
Subscriber can increase or decrease pension amount.
In case of death of subscriber, the spouse will be entitled to receive pension till his/her death.
Contributions made by the subscriber under the Atal Pension Yojana are eligible for the tax benefit under section 80CCD of the Income Tax Act, 1961 .

Penalties for delayed contribution to the pension scheme

Rs.1 per month for contribution of Rs.100 per month. Rs.2 per month for contribution of Rs.101 to 500 per month. Rs.5 per month for contribution of Rs.501 to 1000 per month. Rs.10 per month for contribution of Rs.1001 or more per month.

How to Enrol in Atal Pension Yojana?

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.

Want to exit before attainting the age of 60 years?

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.