About Atal Pension Yojana:
- Atal Pension Yojna is a Social Security Scheme introduced by Govt. of India, aimed at providing a steady stream of income after the age of 60 to all citizens of India. It is based on National Pension Scheme (NPS) frame work. Permanent Retirement Account Number (PRAN) will be provided to the subscriber immediately by the branch.
- Under APY the subscribers have a choice to get Fixed Monthly Pension amount from Rs. 1000, Rs.2000, Rs. 3000, Rs. 4000 and Rs. 5000 by paying monthly subscription as per the table given below:
|Age of Entry
|Years of Contribution
|Monthly pension of Rs. 1000
|Monthly pension of Rs. 2000
|Monthly pension of Rs. 3000
|Monthly pension of Rs. 4000
|Monthly pension of Rs. 5000
- Central Government will co-contribute 50% of the total yearly contribution or Rs. 1000 per annum, whichever is lower, for the period of 5 Years in the account of subscribers who join the scheme up to 31st December, 2015 and who are not a member of any Statutory Social Scheme and not an income tax payer.
- Subscribers joining APY scheme at an early stage of age would be required to pay lesser monthly subscription amount as compared to the subscriber joining at a later age as illustrated in the above table.
- Our NPS-Lite Swavalamban subscribers, if eligible i.e. between the age of 18 to 40, may shift to APY by filling the APY Registration form for Existing Swavalamban Subscribers.
- Nomination facility is available.
- Premature exit from APY is not permitted. However, it is permitted only in exceptional circumstances i.e. in the event of the death of beneficiary for terminal disease.
Who can Subscribe to Atal Pension Yojana?
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/ post office savings bank account
The prospective applicant may provide Aadhaar and mobile number to the bank during
registration to facilitate receipt of periodic updates on APY account. However, Aadhaar
is not mandatory for enrolment.
For how many years Government will contribute?
The co-contribution of the Government of India is available for 5 years, i.e., from the Financial Year 2015-16 to 2019-20 for the subscribers, who join the scheme during the period from 1st June, 2015 to 31st March, 2016 and who are not covered by any Statutory Social Security Scheme and are not income tax payers. The Government cocontribution is payable to eligible Permanent Retirement Account Number (PRANs) by the Pension Fund regulatory and Development Authority (PFRDA) after receiving the confirmation from Central Record Keeping Agency to the effect that the subscriber has paid all the installments for the year Government co-contribution will be credited in subscriber’s savings bank account/ post office savings bank account 50% of the total contribution subject to a maximum of Rs 1000/- at the end of financial year .
Who are the other social security schemes beneficiaries not eligible to receive Government co-contribution under APY?
The beneficiaries, who are covered under statutory social security schemes, are not eligible to receive Government co-contribution under APY. For example, members of the Social Security Schemes under the following enactments would not be eligible to receive Government co-contribution under APY:
(i) Employees’ Provident Fund and Miscellaneous Provision Act, 1952.
(ii) The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
(iii) Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
(iv) Seamens’ Provident Fund Act, 1966.
(v) Jammu Kashmir Employees’ Provident Fund and Miscellaneous Provision Act,
How much pension will be received under APY?
Minimum guaranteed monthly pension of Rs 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will be given from the age of 60 years onwards depending on the contributions by the subscribers
Benefits of joining APY Scheme:
- 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.
- The Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber, who joins the scheme during the period 1st June, 2015 to 31st March, 2016 and who is not a beneficiary of any social security scheme and is not an income tax payer. TheGovernment co-contribution will be given for 5 years from the Financial Year 2015-16 to 2019-20.
- At present, a subscriber under the National Pension System (NPS) is eligible to get tax benefit for the contribution, upto a ceiling, and even for the investment returns on such contributions. Further, the purchase price of the annuity on exit from NPS is also not taxed and only the pension income of the subscribers are considered to be part of normal income and taxed at the appropriate marginal rate of tax, applicable to the subscriber. It is proposed that a similar tax treatment may be given to the subscribers of APY. However, presently, a similar tax dispensation, on par with that available under NPS, is yet to be accorded to subscribers under APY
How the contributions are invested in APY?
The contributions under APY are invested as per the investment guidelines prescribed
by PFRDA for Central Government / State Government / NPS-Lite / Swavalamban
Scheme / APY.
For NPSLITE customers:
- Customer can visit branches to deposit contribution in NPSLITE scheme.
- NPSLITE subscribers can contribute for NPSLITE PRAN online using the below link -Https://Enps.Nsdl.Com/ENPS/InitialExistingUser.Html
- Select ‘NPS Swavalamban’ in the field NPS Subscriber Type and complete the online contribution process.
- Modification/ withdrawal request – Duly filled NPSLITE modification form to be forwarded to NPS Nodal Cell through Base Branch.
- Migration to APY – NPS Lite subscribers in the age group of 18-40 years can migrate their PRANs to APY. Customer to approach branch for the same.
- Grievance redressal – Customer can approach their base branch.
What is the procedure for opening APY Account?
(i) Approach the bank branch/post office where individual’s savings bank account is held or open a savings account if the subscriber doesn’t have one.
(ii) Provide the Bank A/c number/ Post office savings bank account number and with the help of the Bank staff, fill up the APY registration form.
(iii) Provide Aadhaar / Mobile Number. This is not mandatory, but may be provided to facilitate the communication regarding contribution.
(iv) Ensure keeping the required balance in the savings bank account/ post office savings bank account for transfer of monthly / quarterly / half yearly contribution.
What will happen to APY account in case of continuous default?
Deduction would be made in the subscribers account for account maintenance charges and other related charges on a periodic basis. Once the account balance in the subscriber’s account becomes zero due to deduction of account maintenance charges, fees and overdue interest, the account would be closed immediately. For those subscribers, who have availed Government co-contribution, the account would be treated as becoming zero when the subscriber corpus minus the Government cocontribution would be equal to the account maintenance charges, fees and overdue interest and hence the net corpus becomes zero. In this case, the Government cocontribution would be given back to the Government.
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 minimum monthly pension or higher monthly pension, if investment returns are higher than the guaranteed returns embedded in APY. The same amount of monthly pension is payable to spouse (default nominee) upon death of subscriber. Nominee will be eligible for return of pension wealth accumulated till age 60 of the subscriber upon death of both the subscriber and spouse.
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 wealth accumulated till age 60 of the subscriber would be returned to the nominee.
C. Exit before the age of 60 Years:
Exit before 60 years of age is generally not permitted, it may be permitted by PFRDA only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease etc., in-line with the provisions for pre-mature exit under NPS. 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:
The entire accumulated corpus under APY will be returned to the spouse / nominee. However, pension shall not be payable to the spouse / nominee.
What will happen to existing subscribers in NPS-Lite / Swavalamban Yojana?
(A) Subscriber between the age group of 18 and 40:
- The subscriber would be automatically migrated to APY with an option to opt out. The associated aggregator will facilitate those subscribers for completing the process of migration. The subscribers may also approach the nearest authorised bank branch/post office for shifting their Swavalamban account into APY with PRAN details.
- The benefit of co-contribution of the Government of India for those subscribers of Swavalamban Scheme who have migrated to APY would not exceed 5 years under both the Schemes.
- For example, if a Swavalamban beneficiary has received the benefit of Government co-contribution for 1 year, then the Government co-contribution to that subscriber under APY, after migration from the Swavalamban Scheme, would be available only for 4 years, and so on.
- The existing Swavalamban beneficiary opting out from the proposed automatic migration to APY will be given Government co-contribution upto 2016-17, if he is eligible, and the NPS Swavalamban would continue till such people attained the age of exit under that scheme.
- The accumulated corpus of existing Swavalamban subscriber between the age group of 18 and 40 years, who get migrated to APY will be kept under the same PRAN and remain as an additional wealth of the subscriber till the time of exit. This additional amount may be given to the subscriber as enhanced pension benefit or as lump-sum withdrawal, as the case may be. The contribution of such subscribers under APY, after migration from the Swavalamban Scheme to APY, would be as per the amount mentioned, depending on the pension amount selected and the age of the subscriber.
(B) Subscriber above 40 years of age:
The subscribers under the Swavalamban Scheme, who are beyond the age of 40 and who do not wish to continue under the Scheme, may opt out by complete withdrawal of entire amount in lump sum, or may prefer to continue till the age of 60 years, to be eligible for annuities there under.
Tax benefits: Tax Benefits are available under APY scheme are same as under NPS Scheme as per notification
How to download the APY Form?
You can avail the Atal Pension Yojana (APY) account opening form by using any one of the following methods:
- You can collect the form from any nearby branch office of any participant bank.
- You can download and get a print of the form from the official websites of the participant banks, provided they have the facility for the same.
- You can download the APY account opening form from the official website of Pension Fund Regulatory and Development Authority (PFRDA).
How to Apply to Atal Pension Yojana (APY)?
The below-mentioned steps must be followed in order to get benefits for the scheme.
- All nationalised banks offer the APY scheme. Individuals can visit these banks to open an APY account.
- The account opening forms are available online on the bank websites as well. Individuals can download the application form.
- The application form is available in English, Telugu, Tamil, Odia, Marathi, Kannada, Gujarati, and Bangla.
- The application form must be filled and submitted at the bank.
- A valid mobile number should be provided.
- Aadhaar card photocopy must be submitted.
- After approval applicants will receive the confirmation message
How to Fill the Atal Pension Yojana Form?
The following steps need to be followed for filling the Atal Pension Yojana.
Step 1: Addressing the form
Applicants have to address the form to the Branch Manager. You can find out the name of your Branch Manager by calling or visiting the bank. Enter your bank name and branch.
Step 2: Bank details
Fill the form in BLOCK letters. First, you are required to provide your bank details. Enter your bank account number, bank name and bank branch. This field is compulsory.
Step 3: Personal details
- Tick the box that is applicable that indicates whether you are ‘Shri’, ‘Smt’ or ‘Kumari’. Tick ‘Shri’ if you are a male applicant. Tick ‘Smt’ if you are a married female applicant. Tick ‘Kumari’ if you are a single female applicant.
- Married applicants must enter their spouse’s name.
- Enter your full name, date of birth, and age.
- Provide your mobile number, email address and Aadhaar number.
- You can then nominate someone and state their relationship to you. A nominee will receive your contribution in case of your death.
- If the nominee is a minor, you need to provide their date of birth and guardian’s name.
- You must also state if the nominee has any other statutory social security schemes and if they are income taxpayers.
Step 4: Pension details
- You can contribute towards your pension, between Rs.1,000 and Rs.5,000 with options in the form as Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, and Rs.5,000. The box below titled; ‘Contribution Amount (Monthly)’ is to be left blank as the bank will fill that in after calculating the amount you have to pay every month to receive the pension.
- The calculation will be based on your entry age. For example, for a pension of Rs.2,000, if your entry age is 25 years, you will have to pay Rs.151 per month.
Step 5: Declaration and Authorisation
You need to fill in the date and place. You can either sign the document or put a thumb impression. By signing the document, you declare that you meet the Atal Pension Yojana eligibility criteria, and that you have read and understood the terms and conditions of the scheme. You declare that all the information you have written is correct as far as you know. If any changes have to be made to the information provided, you will contact the bank immediately. You also declare that you do not have any account under NPS (National Pension System). You will be held liable for any false or incorrect information knowingly provided.
Step 6: To be filled in by the bank
The last section of the Atal Pension Scheme form, titled ‘Acknowledgement – Subscriber Registration for Atal Pension Yojana (APY)’ is to be filled in by the bank. It is an acknowledgment from the bank that they will subscribe to the Atal Pension Yojana Scheme for you. After you submit the form, the bank agent will fill it out.
FAQ’s regarding Atal Pension Yojana
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.
Assured monthly income ensures dignified life in old age.
For how many Years Government will co-contribute?
The co-contribution of the Government of India is available for 5 years
How much pension will be received under APY?
Minimum guaranteed monthly pension of Rs 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will be given from the age of 60 years onwards depending on the contributions by the subscribers.
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, the spouse will be the default nominee. Unmarried subscribers can nominate any other person as nominee & they have to provide spouse details after marriage. The Aadhaar details of spouse and nominees may be provided
How many APY accounts I can open?
A subscriber can open only one APY account and it is unique. Multiple accounts are not permitted
How will I know the status of my contribution?
The periodical information to the subscribers regarding activation of PRAN, balance in the account, contribution credits etc. will be intimated to APY subscribers by way of SMS alerts. The subscriber will also be receiving physical Statement of Account once a year.
Will I get any statement of transactions?
The physical statement of APY account will be provided to the subscribers annually
What will happen if a subscriber becomes non-citizen of the country?
The scheme is open to the Indian citizens only. Hence, in that event the APY account will be closed and contribution will be returned to the subscriber as mentioned above in the case of voluntary exit before the age of 60 years.
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 mode (monthly/ quarterly/half yearly) of auto debit facility once in a year during the month of April
If I have completed 40 years, can I join Atal Pension Yojana?
No, a person who is in age group of 18 years to 39 years 364 days can join Atal Pension Yojana