Consider the following Statements and choose the option with correct Statements about the Atal Pension Yojana.

I- GoI will co-contribute 50% of the subscriber’s contribution or Rs. 1,000 per annum, whichever is lower.

II- Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.

III- The exit from APY is permitted at the age of 40 with 100% annuitisation of pension wealth. On exit, pension would be available to the subscriber.

Solution

Atal Pension Yojana: •             Launched in 2015 to address the longevity risks among the workers in unorganized sector and to encourage the workers in unorganized sector to voluntarily save for their retirement •             The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS architecture. Eligibility •             APY is applicable to all citizen of India aged between 18-40 years. •             Aadhaar will be the primary KYC. Aadhar and mobile number are recommended to be obtained from subscribers for the ease of operation of the scheme. If not available at the time of registration, Aadhar details may also be submitted later stage Government contribution •             GoI will co-contribute 50% of the subscriber’s contribution or Rs. 1,000 per annum, whichever is lower. Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer. •             GoI will co-contribute to each eligible subscriber, for a period of 5 years who joins the scheme between the period 1st June, 2015 to 31st December, 2015. The benefit of five years of government Co-contribution under APY would not exceed 5 years for all subscribers including migrated Swavalamban beneficiaries.   Exit •             On attaining the age of 60 years: The exit from APY is permitted at the age with 100% annuitisation of pension wealth. On exit, pension would be available to the subscriber. •             In case of death of the Subscriber due to any cause: In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee. •             Exit Before the age of 60 Years: Exit before 60 years of age is not permitted however it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.