Atal Pension Yojana is meant for the purpose of social security in our country. The motive of the government to introduce this yojana is to promote the financial inclusion, social security, and low-cost benefits to the masses as per the NDA government’s agenda. It is the first step of the government's towards to achievement of social security and it was started by the Pradhan Mantri Jan Dhan Yojana (PMJDY).
The first Phase of PMJDY has been declared a major success around 1.8 crore accounts have been opened across the country. After this success the government has launched three new schemes in year 2015. Out of three schemes two schemes are insurance schemes
-Pradhan Mantri Jeevan Jyoti Bima Yojana,
-Pradhan Mantri Suraksha Bima Yojana
and third one is a pension scheme
-Atal Pension Yojana.
It is a brief to understand better about the government planning in direction of social security but today I am going to discuss about the APY in details
Atal Pension Yojana
After encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, our Finance Minister said in his budget speech that "I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age”. He also added that our young age population are going to be pension-less.
By keeping this idea, "The Atal Pension Yojna" a National Pension Scheme, will be launched w.e.f 1st June 2015.
The idea behind this scheme is to allow people working in the unorganised sector under the pension benefits scheme and enjoy social security with minimum contribution per month means
People who are working in the private sector where the employer does not give them the benefit of pension they can apply for the scheme and can opt for a fixed pension of ₹ 1,000, 2,000, 3,000, 4,000 or 5,000 on attaining the age of 60. The person who wish to join the scheme has to contribute some nominal amount to get this benefit and the amount of contribution and the individual’s age will determine the pension amount.
After death of the contributor the spouse of the contributor can claim the pension and after the spouse’s death the nominee will be returned the corpus accrued.
The fund collected under this scheme will be managed by Pension Funds as per the investment pattern specified by the Government and the Individual Investor will have no choice for allocation of the pension funds or investment allocation.
Benefits
The Atal Pension Yojana will be launched with the following benefits
- To bring security to be ageing Indians
- To promote a culture of savings and investment among the lower and lower middle class of the society.
- To include the poorer sections of society.
- The government of India is also contribute 50 percent of the user’s contribution or ₹ 1,000 a year (whichever is lower) for a period of five years. But condition applied
- if the user is a income tax payee this government contribution will not applicable.
- who join the scheme before 31 December 2015.
Eligibility
The Atal Pension Yojana (APY) is open to
- all Indians between the age of 18 and 40. - minimum contribution is at least 20 years.
- any bank account holder who is not a member of any statutory social security scheme can avail of the scheme.
- all existing members of the government’s ‘Swavalamban Yojana NPS Lite’ will automatically migrated to the Atal Pension Yojana. In other words the Swavalamban scheme has been replaced with APY because the Swavalamban pension scheme did not gain much popularity across the country.
How to became a APY user?
- The individual must have an account in a bank
- He must fill in an authorisation form with his/her bank containing complete details of his/her account number, spouse and nominee details, and authorisation for auto debit of his account for the desired contribution amount.
- Account holders must ensure that sufficient balance is maintained in the account every month,. If the account Holder fail to maintain the agreed amount in the account a monthly fine will be charged as
- ₹ 1 for monthly contribution up to INR 100
- ₹ 2 for monthly contribution between ₹ 101 to ₹ 500
- ₹ 5 for monthly contribution between ₹ 501 to ₹ 1,000
- ₹ 10 for monthly contribution beyond ₹ 1,001
in case no payment is made towards the scheme
- for 6 months, reactivate with normal penalty
- if payment will not made for 12 months the account will be frozen
- if no payments upto 24 months the account will be deactivated and will be closed
Maturity under the scheme
- Under ordinary circumstances, an account holder who has enrolled for the Atal Pension Yojana will not be able to exit from the scheme before the age of 60.
- Maturity of the scheme is only possible in special circumstance such as in the event of the death of the beneficiary.
The application form can be downloaded from http://www.jansuraksha.gov.in/FORMS-APY.aspx.
The forms are available in different languages – English, Hindi, Gujarati, Bangla, Kannada, Odia, Marathi, Telugu and Tamil.
The APY is also available in Post Offices of all over the country.
This is a good move of the present government to provide social security in the form of old age pemsion in the country
The first Phase of PMJDY has been declared a major success around 1.8 crore accounts have been opened across the country. After this success the government has launched three new schemes in year 2015. Out of three schemes two schemes are insurance schemes
-Pradhan Mantri Jeevan Jyoti Bima Yojana,
-Pradhan Mantri Suraksha Bima Yojana
and third one is a pension scheme
-Atal Pension Yojana.
It is a brief to understand better about the government planning in direction of social security but today I am going to discuss about the APY in details
Atal Pension Yojana
After encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, our Finance Minister said in his budget speech that "I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age”. He also added that our young age population are going to be pension-less.
By keeping this idea, "The Atal Pension Yojna" a National Pension Scheme, will be launched w.e.f 1st June 2015.
The idea behind this scheme is to allow people working in the unorganised sector under the pension benefits scheme and enjoy social security with minimum contribution per month means
People who are working in the private sector where the employer does not give them the benefit of pension they can apply for the scheme and can opt for a fixed pension of ₹ 1,000, 2,000, 3,000, 4,000 or 5,000 on attaining the age of 60. The person who wish to join the scheme has to contribute some nominal amount to get this benefit and the amount of contribution and the individual’s age will determine the pension amount.
After death of the contributor the spouse of the contributor can claim the pension and after the spouse’s death the nominee will be returned the corpus accrued.
The fund collected under this scheme will be managed by Pension Funds as per the investment pattern specified by the Government and the Individual Investor will have no choice for allocation of the pension funds or investment allocation.
Benefits
The Atal Pension Yojana will be launched with the following benefits
- To bring security to be ageing Indians
- To promote a culture of savings and investment among the lower and lower middle class of the society.
- To include the poorer sections of society.
- The government of India is also contribute 50 percent of the user’s contribution or ₹ 1,000 a year (whichever is lower) for a period of five years. But condition applied
- if the user is a income tax payee this government contribution will not applicable.
- who join the scheme before 31 December 2015.
Eligibility
The Atal Pension Yojana (APY) is open to
- all Indians between the age of 18 and 40. - minimum contribution is at least 20 years.
- any bank account holder who is not a member of any statutory social security scheme can avail of the scheme.
- all existing members of the government’s ‘Swavalamban Yojana NPS Lite’ will automatically migrated to the Atal Pension Yojana. In other words the Swavalamban scheme has been replaced with APY because the Swavalamban pension scheme did not gain much popularity across the country.
How to became a APY user?
- The individual must have an account in a bank
- He must fill in an authorisation form with his/her bank containing complete details of his/her account number, spouse and nominee details, and authorisation for auto debit of his account for the desired contribution amount.
- Account holders must ensure that sufficient balance is maintained in the account every month,. If the account Holder fail to maintain the agreed amount in the account a monthly fine will be charged as
- ₹ 1 for monthly contribution up to INR 100
- ₹ 2 for monthly contribution between ₹ 101 to ₹ 500
- ₹ 5 for monthly contribution between ₹ 501 to ₹ 1,000
- ₹ 10 for monthly contribution beyond ₹ 1,001
in case no payment is made towards the scheme
- for 6 months, reactivate with normal penalty
- if payment will not made for 12 months the account will be frozen
- if no payments upto 24 months the account will be deactivated and will be closed
Maturity under the scheme
- Under ordinary circumstances, an account holder who has enrolled for the Atal Pension Yojana will not be able to exit from the scheme before the age of 60.
- Maturity of the scheme is only possible in special circumstance such as in the event of the death of the beneficiary.
The application form can be downloaded from http://www.jansuraksha.gov.in/FORMS-APY.aspx.
The forms are available in different languages – English, Hindi, Gujarati, Bangla, Kannada, Odia, Marathi, Telugu and Tamil.
The APY is also available in Post Offices of all over the country.
This is a good move of the present government to provide social security in the form of old age pemsion in the country
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