Have you ever thought of Capital planning for employees in the unorganized sector: Sounds extreme? Not exactly. The government launched the Atal Pension Yojana (APY) in June 2015. Therefore, it is a pension scheme for unorganized sector employees like personal maids, drivers, and gardeners. This social security scheme replaced the previous government’s Swavalamban Yojana NPS Lite, which was not well appreciated by the public.
APY helps to assist these employees in saving money for their retirement while they are still employed. It promises returns after they retire. The scheme also guarantees that the Central Government will contribute 50% of a worker’s total prescribed contribution, up to Rs. 1000 per year, but only to those who joined APY before December 31, 2015. Furthermore, in eligible cases, this co-contribution would be made for only 5 years. From FY 2015-16 to FY 2019-20, subject to the conditions listed below.
Eligibilty of APY Scheme
If you meet the following criteria, you are eligible for the Atal Pension Yojana:
- Anyone who is not a member of a statutory social security scheme is eligible for the Atal Pension Yojana (APY)
- Anyone between the ages of 18 and 40 who has a bank account is eligible for the scheme
- He or she may be required to show proof of possession in addition to their Aadhaar number, or undergo Aadhaar authentication
- The subscriber’s Aadhaar number should be registered in both the APY pension account and the savings account
- The Aadhar number is required for the debit of contribution installments as well as the credit of government co-contribution
|Atal Pension Yojana|
|Date of Launching||9th May 2015|
|Launched By||Prime Minister Narendra Modi|
|Regulatory Body||Pension Fund Regulatory and Development Authority (PFRDA)|
|Department||Department of Financial Services, Government of India|
Latest Information on the Atal Pension Yojana Scheme
On May 9, 2020, the government of India’s flagship social security scheme, the ‘Atal Pension Yojana’ (APY), has now completed five years of implementation, with over 2.2 crore subscribers.
|Pension Fund Regulatory and Development AuthorityThe Pension Fund Regulatory and Development Authority (PFRDA) is a legislative body responsible for regulating, promoting, and ensuring the orderly growth of the National Pension System (NPS)It is a part of the Ministry of Finance’s Department of Financial Services|
National Pension SystemThe National Pension System (NPS) is a government-sponsored pension plan. It was first offered to government employees in 2004.Any Indian citizen (both resident and non-resident) between the ages of 18 and 65 can now enter the NPS
Benefits of Atal Pension Yojana
The Atal Pension Yojana (APY) is a government scheme that came into effect on June 1, 2015, with the aim of providing old-age coverage to unorganized employees who are not covered by any social security schemes. The benefits provided by the Atal Pension Yojana are mentioned below:
- The scheme offers subscribers a fixed pension ranging from Rs.1000 to Rs.5000 per month. When he or she enters and contributes between the ages of 18 and 40, he or she may be eligible for a pension. The amount of contribution varies depending on the circumstances; it is low if the subscriber enters the scheme early and can rise if he or she joins late.
- The spouse of the subscriber is entitled to the same benefits as the subscriber after the latter’s death
- After the death of a partner, the estimated pension wealth will be returned to the nominees
- Contributions to the Atal Pension Yojana (APY) are tax-deductible in the same way as contributions to the National Pension System are (NPS)
The success of the APY Scheme
The five-year journey of APY has been incredible, and as of May 9, 2020 –
- The total number of people enrolled in the scheme was 2,23,54,028
- Almost 50 lac subscribers were enrolled in the first two years, which doubled to 100 lac in the third year, and 1.50 crore in the fourth year
- Nearly 70 lacs subscribers were enrolled in the system in the previous financial year, 2020
- Besides the remarkable enrollment numbers, the scheme has been introduced throughout the country, with a male to female subscription ratio of 57:43 in all states and union territories
- The total number of NPS and Atal Pension Yojana subscribers has surpassed 3.46 crore as of 30 April 2020
The government’s Atal Pension Yojana (APY), a minimum guaranteed pension scheme designed specifically for workers in the unorganised sector, has outperformed most pension plans. In the last year (2020), the scheme has returned over 11 percent.