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:
Ø Decreased income earning potential with age.
Ø The rise of nuclear family-Migration of earning members.
Ø Rise in cost of living.
Ø Increased longevity.
Assured monthly income ensures dignified life in old age.
2. What is Atal Pension Yojana?
Atal Pension Yojana (APY), a pension scheme for citizens of India
focussed on the unorganised sector workers. 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,
i The age
of the subscriber should be between 18 - 40 years.
ii He / She
should have a savings bank account/ open a savings bank account.
iii The
prospective applicant should be in possession of mobile number and its details
are to be furnished to the bank during registration.
Ø Government co-contribution is available
for 5 years, i.e., from 2015-16 to 2019-20 for the subscribers who join the
scheme during the period from 1st June, 2015 to 31st December, 2015 and who are not covered by any Statutory Social
Security Schemes and are not income tax payers.
4. Who are the other social security
schemes beneficiaries not eligible to receive Government co-contribution under
APY?
Beneficiaries who are covered under statutory social security schemes
are not eligible to receive Government co-contribution. For example, members of
the Social Security Schemes under the following enactments would not be
eligible to receive Government co-contribution:
i.
Employees’ Provident Fund & Miscellaneous Provision Act, 1952.
ii. The
Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
iii. Assam
Tea PlantationProvident Fund and Miscellaneous Provision, 1955.
iv.
Seamens’ Provident Fund Act, 1966.
v. Jammu
Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961.
vi. Any other statutory social security scheme.
5. How much pension will be received
under 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. The benefit of minimum pension under Atal
Pension Yojana would be guaranteed by the Government in the sense that if the
actual realised returns on the pension contributions are less than the assumed
returns, for minimum guaranteed pension, over the period of contribution, such
shortfall shall be funded by the Government. On the other hand, if the actual
returns on the pension contributions are higher than the assumed returns for
minimum guaranteed pension, over the period of contribution, such excess shall
be credited to the subscriber’s account, resulting in enhanced scheme benefits
to the subscribers.
6. What is the benefit in joining APY
scheme?
In APY, Government will co-contribute 50% of the total contribution or
Rs. 1,000/- per annum, whichever is lower, to the eligible APY account holders
who join the scheme 3
during the period 1st June, 2015 to 31st December, 2015. The Government co-contribution
will be given for 5 years from FY 2015-16 to 2019-20.
7. How are the contributions of APY
invested?
The contributions under APY are invested as per the investment
guidelines prescribed by Ministry of Finance, Government of India. The APY
scheme is administered by PFRDA/GOVERNMENT.
8. What is the procedure for opening APY
Account?
i Approach
the bank branch where individual’s savings bank account is held.
ii Fill up
the APY registration form.
iii Provide
Aadhaar/Mobile Number.
iv Ensure keeping the required balance in the savings bank account for
transfer of monthly contribution.
9. Whether Aadhaar Number is compulsory
for joining the scheme?
It is not mandatory to provide Aadhaar number for opening APY account.
However, For enrolment, Aadhaar would be the primary KYC document for
identification of beneficiaries, spouse and nominees to avoid pension rights
and entitlement related disputes in the long-term.
10.Can I open APY Account without savings
bank account?
No. For joining APY, savings bank account is mandatory.
11.What is the mode of contribution to
the account?
All the contributions are to be remitted monthly through auto-debit
facility from savings bank account of the subscriber.
12.What is the due date for monthly
contribution?
The due date for monthly contribution will be as per the initial date
of deposit of contribution into APY.
13.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. Banks are
required to collect additional amount for delayed payments, such amount will
vary from minimum Re 1 per month to Rs 10/- per month as shown below:
i. Re. 1
per month for contribution upto Rs. 100 per month.
ii. Re. 2
per month for contribution upto Rs. 101 to 500/- per month.
iii. Re 5
per month for contribution between Rs 501/- to 1000/- per month.
iv. Rs 10 per month for contribution beyond Rs 1001/- per month.
Discontinuation of payments of contribution amount shall lead to
following:
After 6 months account will be frozen.
After 12 months account will be deactivated.
After 24 months account will be closed.
Subscriber should ensure that the Bank account to be funded enough for
auto debit of contribution amount.
The fixed amount of interest/penalty will remain as part of the
pension corpus of the subscriber.
14.How much should I invest in APY to get
the guaranteed pension of Rs. 1000?
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Age of Joining
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Years of Contribution
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Indicative Monthly contribution
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