Atal Pension Yojana

Atal Pension Yojana

1. What is Pension? Why do I need it?

A Pension provides people with a monthly income when they are no longer earning.
Need for Pension:
  • Decreased income earning potential with age.
  • The rise of nuclear family-Migration of earning members.
  • Rise in cost of living.
  • Increased longevity.
  • Assured monthly income ensures dignified life in old age.

2. What is Atal Pension Yojana?

Atal Pension Yojana (APY), is a govt. of India initiated pension scheme for citizens of India. Under the APY, guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.

3. Who can subscribe to APY?

Any Citizen of India can join APY scheme. The following are the eligibility criteria,
  • The age of the subscriber should be between 18 – 40 years.
  • He / She should have a savings bank account.

4. How much pension will be received under APY?

Minimum guaranteed monthly pension of Rs 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.

5. Is there any tax benefit in joining APY scheme?

Contributions under the pension scheme enjoy the same tax benefits as the NPS (National Pension System). Contributions can be claimed under Section 80CCD (1B) of the Income Tax Act. The current limit for income tax deduction Section 80CCD (1B) is Rs. 50,000. This is over and above the Rs. 1.5 lakh allowed under Section 80C.

6. How the contributions are invested in APY?

The contributions under APY are invested as per the investment guidelines prescribed by Ministry of Finance, Government of India Govt. scheme. The APY scheme is administered by PFRDA.

7. Can I open APY Account without savings bank account?

No., savings bank account is mandatory for joining APY.

8. What is the mode of contribution to the account?

All the contributions are to be remitted monthly/quarterly/half-yearly through auto-debit facility from savings bank account of the subscriber.

9. What is the due date for contribution?

The due date for contribution is 15th of every month if the contribution frequency is monthly. The quarterly and half-yearly contributions will be due on 15th of first month of the financial year quarter/half year. However retrials to debit the contribution amount will be made throughout the month.

10. What is PRAN in Atal pension?

On successful registration, a PRAN (Permanent Retirement Account Number) will be allotted to the subscriber. Customer can download his / her Atal Pension Yojana statement based on this unique number, PRAN, that identifies his/her account. No, physical PRAN card is issued by PFRDA or NSDL for Atal Pension Yojana. The subscriber will receive periodic physical Statement of Account issued by NSDL once a year. Subscriber can download APY app to view account details / contributions paid / transaction statement. Alternatively, can also download APY transaction statement at NSDL site.

11. What will happen if required or sufficient amount is not maintained in the savings bank account for contribution on the due date?

Non-maintenance of required balance in the savings bank account for contribution on the specified date will be considered as default. Airtel Payments Bank shall collect additional amount for delayed payments. The penalty charged will be Re. 1 per Rs. 100 contribution amount. The overdue interest amount collected will remain as part of the pension corpus of the subscriber. More than one monthly / quarterly / half yearly contribution can be recovered subject to availability of the funds. In all cases, the contribution amount of the month / quarter / half year is to be recovered along with the overdue charges if any. The due amount will be recovered as and when funds are available in the account. Illustration: In the example below, total amount Rs. 354 will be transferred into the PRAN.
APY subscriber of 30 years who opted Rs 1000 minimum guaranteed pension had defaulted contribution of Rs 116/- effective from August’15 and contributes as on October’15
Period Amount of Contribution Overdue Amount
August’15 116 4
September’15 116 2
October’15 116 0
Total Amount 348 6

12. What will happen to APY account in case of continuous default?

Subscriber should ensure that sufficient balance is maintained in the bank account to facilitate timely auto debit of contribution amount. The overdue amount of interest will remain as part of the pension corpus of the subscriber. The contribution will be recovered along with the overdue charges if any. The due amount will be recovered as and when funds are available in the account.

13. How does the overdue contributions are recovered/calculated?

The contributions are recovered as specified below:
APY subscriber of 30 years who opted Rs 1000 minimum guaranteed pension had defaulted monthly contribution of Rs 116/- effective from August’15 and deposits two months overdue contribution into SB account as on 31st October’15. The SB a/c balance in Oct’15 is Rs. 250.
Period Amount of Contribution Overdue Amount Recovery of Contribution
August’15 116 4 Yes
September’15 116 2 Yes
October’15 116 0 No
Total Amount in SB Account 250
The amount of contribution Rs 238 will be transferred into the PRAN towards contribution for the months of August’15 and Sepetember’15.

14. How much should I invest in APY to get the guaranteed pension of Rs. 1000?

Age of Joining Years of contribution Monthly Contribution
18 42 42
20 40 50
25 35 76
30 30 116
35 25 181
All the contributions are to be remitted through auto debit facility from savings bank account of the subscriber.
*For detailed age wise contribution refer Annexure 1.

15. Is it required to furnish nomination while joining the scheme?

Yes. It is mandatory to provide nominee details in APY account. If the subscriber is married, then spouse will be the default nominee. In addition, another nominee will have to be provided by the subscriber. The Aadhaar details of spouse and nominees are NOT required.

16. How many APY accounts I can open?

A subscriber can open only one APY account and it is unique. Multiple accounts are not permitted.

17. Will there be any option to increase or decrease the monthly contribution for higher or lower pension amount?

The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, once a year. However, the switching option of pension amount shall be available once in year during the month of April.

18. What is the withdrawal procedure from APY?

  • A. On attaining the age of 60 years: Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed monthly pension.
  • B. In case of death of the Subscriber due to any cause after the age of 60 years: 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 the nominee mentioned in the scheme.
  • C. Exit Before the age of 60 Years: Voluntary exit in APY is permitted. The amount of pension wealth in the APY account will be paid to the subscriber. No fixed/guaranteed pension payable. In case a subscriber, who has availed Government co-contribution under APY, chooses to voluntarily exit APY at a future date, he shall only be refunded the contributions made by him to APY, along with the net actual accrued income earned on his contributions (after deducting the account maintenance charges). The Government co-contribution, and the accrued income earned on the Government co-contribution, shall not be returned to such subscribers.
  • D. Death of Subscriber before 60 years: If married, option will be available to the spouse of the subscriber to continue contribution in the APY account of the subscriber, which can be maintained in the spouse’s name, for the remaining vesting period, till the original subscriber would have attained the age of 60 years or the entire corpus will be returned to the spouse who is the default nominee. Account Closure Form for death is available on Airtel.in. It can be downloaded from there, filled in and send it to Airtel Center Office along with list of documents mentioned in the form for further processing.
  • E. If spouse also died then the pension corpus would be returned to the nominee mentioned in the scheme.

19. How will I know the status of my contribution?

The status of contributions will be intimated to the registered mobile number of the subscriber by way of periodical SMS alerts. The Subscriber will also be receiving physical Statement of Account once a year.

20. Will I get any statement of transactions?

Yes. Annual statement of APY account will be provided to the subscribers. Alternatively, subscribers can download the APY transaction statement at NSDL site.
Steps to be followed for downloading the APY account statement –
Enter Name + Bank a/c No. + DOB & Print
OR
Enter PRAN* + Bank a/c Number & Print
*PRAN is available in the APY contribution debit narration in your account (PRAN begins with “5” & is 12 digit)

21. If I move my residence/city, how can I make contributions to APY account?

The contributions may be remitted through auto debit uninterruptedly even in case of change of residence/location.

22. What will happen if a subscriber becomes non-citizen of the country?

The scheme is open to citizen of the country only. Hence, in that event the APY A/c will be closed and contribution will be returned back to the subscriber’s A/c.
23. What will happen to existing subscribers in Swavalamban Yojana?
A. Subscriber between age group of 18 to 40
  • The subscriber would be automatically migrated to APY with an option to opt out.
  • Gov. Co-contribution of existing subscribers under APY would not exceed 5 years for all subscribers. For example, Swavalamban beneficiary has received the benefit of government Co-Contribution of 1 year, then the Government co-contribution under APY would be available only 4 years and so on.
  • Existing subscribers may approach existing Aggregator or the nearest authorized bank branch for shifting their Swavalamban account into APY with PRAN details.
  • Existing Swavalamban beneficiaries opting out from the proposed APY will be given Government co-contribution till 2016- 17, if eligible, and the NPS Swavalamban would continue till such people attained the age of exit under that scheme.
B. Subscriber above 40 years of age
  • Subscriber may continue in the scheme till 60 years of age and be eligible for annuities there under, however Govt. co-contribution will be available till 2016-17.

24. If I am an existing subscriber of APY, can I change my monthly auto debit facility to Quarterly or Half Yearly as per my convenience?

Yes, the subscriber can change the frequency (monthly/quarterly/half yearly) of auto debit facility any time by calling at the Airtel Payments Bank customer care numbers 400(Airtel) or 8800688006(Others).
Annexure 1
ATAL PENSION YOJANA – Contribution Chart
 Minimum Guaranteed
Pension of Rs. 1000/month
 Minimum Guaranteed
Pension of Rs.2000/month
 Minimum Guaranteed
Pension of Rs.3000/month
 Minimum Guaranteed
Pension of Rs.4000/month
 Minimum Guaranteed
Pension of Rs.5000/month
Return of Corpus Amount to the Nominee Rs. 1.7 Lakh Rs. 3.4 Lakh Rs. 5.1 Lakh Rs. 6.8 Lakh Rs. 8.5 Lakh
Age at entry Vesting period CONTRIBUTIONS
Monthly Quarterly Half Yearly Monthly Quarterly Half Yearly Monthly Quarterly Half Yearly Monthly Quarterly Half Yearly Monthly Quarterly Half Yearly
18 42 42 125 248 84 250 496 126 376 744 168 501 991 210 626 1239
19 41 46 137 271 92 274 543 138 411 814 183 545 1080 228 679 1346
20 40 50 149 295 100 298 590 150 447 885 198 590 1169 248 739 1464
21 39 54 161 319 108 322 637 162 483 956 215 641 1269 269 802 1588
22 38 59 176 348 117 349 690 177 527 1046 234 697 1381 292 870 1723
23 37 64 191 378 127 378 749 192 572 1133 254 757 1499 318 948 1877
24 36 70 209 413 139 414 820 208 620 1228 277 826 1635 346 1031 2042
25 35 76 226 449 151 450 891 226 674 1334 301 897 1776 376 1121 2219
26 34 82 244 484 164 489 968 246 733 1452 327 975 1930 409 1219 2414
27 33 90 268 531 178 530 1050 268 799 1582 356 1061 2101 446 1329 2632
28 32 97 289 572 194 578 1145 292 870 1723 388 1156 2290 485 1445 2862
29 31 106 316 626 212 632 1251 318 948 1877 423 1261 2496 529 1577 3122
30 30 116 346 685 231 688 1363 347 1034 2048 462 1377 2727 577 1720 3405
31 29 126 376 744 252 751 1487 379 1129 2237 504 1502 2974 630 1878 3718
32 28 138 411 814 276 823 1629 414 1234 2443 551 1642 3252 689 2053 4066
33 27 151 450 891 302 900 1782 453 1350 2673 602 1794 3553 752 2241 4438
34 26 165 492 974 330 983 1948 495 1475 2921 659 1964 3889 824 2456 4863
35 25 181 539 1068 362 1079 2136 543 1618 3205 722 2152 4261 902 2688 5323
36 24 198 590 1169 396 1180 2337 594 1770 3506 792 2360 4674 990 2950 5843
37 23 218 650 1287 436 1299 2573 654 1949 3860 870 2593 5134 1087 3239 6415
38 22 240 715 1416 480 1430 2833 720 2146 4249 957 2852 5648 1196 3564 7058
39 21 264 787 1558 528 1574 3116 792 2360 4674 1054 3141 6220 1318 3928 7778

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