Atal Pension Yojana

Atal Pension Yojana (APY) - Know Everything about APY

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Atal Pension Scheme is a Great Pension Plan for Daily Wage Workers:

To inculcate a habit of compulsory saving for retirement, the Government of India in 2015 announced the Atal Pension Scheme (APS) for the workers of the unorganized sector. According to the 66th Round of NSSO Survey of 2011-12, 88% of Indian workers don’t have income support during their old age!  

The Atal Pension Yojana (APY) is aimed at people who want to save a small amount of money for a fixed pension (primarily daily wage workers who are unable to save for their future), once they retire. People working in the private sector, who are neither tax-payees nor a part of any other social security scheme, can also enjoy its benefits. All eligible family members can subscribe APS in their names for higher pension benefits to their families.

Atal Pension Yojana

Atal Pension Yojana Overview

Every eligible citizen who joins the Atal pension plan between 1 June 2015 and 1 Dec 2015 will get 50% of the contribution amount or Rs.1000/year, whichever is lower. This co-contribution by the Government will hold good for a maximum of 5 years. You can get a fixed pension ranging from Rs.1000 to a maximum of Rs. 5000/month by investing through this scheme. The eligible age to join the Atal Pension Yojana is 18 years and up to 40 years. You will start receiving your pension from the age of 60. Hence, the minimum period of contribution will be 20 years. You can exit from the scheme only in case of exceptional circumstances such as death of beneficiary or a terminal disease. Any false declaration in the application form will lead to loss of Government’s contribution and penalty.

Features of Atal Pension Yojana:

Subscribers can get a fixed pension amount on monthly basis beginning from Rs. 1000 up to Rs. 5000, every month after they attain the age of retirement (60 years), until the demise of the subscriber. After the demise of the policy holder, the companion will be designated to receive the accurate same amount of pension as the subscriber, until the demise of the spouse. The beneficiary will get the complete pension amount accumulated by the policy holder after the demise of the subscriber and his companion. The fixed amount of pension differs from that of the contributions made by the subscriber previously. To avail the moistest benefit from the Atal Pension Yojana, people must join this plan once they attain an age of 18 years and donate until they attain an age of 40 years. Banking on this, the maximal period of contribution will be 20 years or more.

Contribution Amount of the Endorser for Atal Pension Yojna:

If a modish subscriber begins with making a contribution at the age of 18, the monthly sum needed will be Rs. 42 per month to get an amount of pension of Rs. 1000. The monthly amount of contribution will vary as per the payment’s tenure, banking on when the person joins the Atal Pension Yojana. Contributors can make contributions on monthly basis via auto-debit service available on the bank account in the country. If a client declines the payment of the monthly contribution amount, then he is free to re-enter the APY scheme by making payment of the rate of interest and the due principal amount for the exact duration.

Co-contribution Scheme by Government of India:

For the sake to sway a number of nationals to open an APY account, the Indian Government will also make contributions towards the pensions plan for the duration of five years, i.e. from the year 2015 to 2020. The contributions will be made to APY subscriber accounts that got activated between June 1, 2015 and December 31, 2015. The customers must not be income tax payers and must not get covered under Statutory Social Security Schemes. The Indian Government’s contribution is either 50 percent of the amount of the monthly contribution by the subscriber or Rs. 1000, whichever is lesser, for the duration of five years. It is necessary that, in order to get the contribution by Government, the Atal Pension Yojana endorser has to contribute regularly on monthly basis during the complete course of the year. Only then the Government of India will credit 50 percent of the monthly contribution paid to the account of the subscriber.

Co-contributions by the State Government:

The State Government is also legitimate to offer a supplementary co-contribution to AYP endorsers, in their particular states. As needed, the Pension Fund Regulatory and Development Authority would give the procedure for this, in conferment to the rules set by the Central Government.

Subscriber Enrolment/Payment:

Consumers who hold a valid bank account can associate with the Atal Pension Yojana plan and make use of the auto-debit facility to make payment on the half-yearly, quarterly and monthly basis. It is imperative that the endorser maintains the prescribed balance in the savings bank account, to make payment on the due date, to escape the penalty for late payments. The due date to make a contribution on monthly basis is determined to depend upon the amount of first monthly contribution. If the endorser does not make payment of the monthly contributions on regular basis, then the AYP account can be closed and the amount of contribution of Government of India will be penalised. Any incorrect proclamation done in regard to the subscriber’s eligibility will lead to the entire amount of the contribution by the Government and the interest being penalised. You would have to submit the primary KYC documents to identify the spouse, nominees, and beneficiaries so as to prevent any conflicts. Every endorser has to choose an amount of pension between Rs. 1000 and Rs. 5000 and also ensure that the contributions are done accurately. The Atal Pension Yojana plan also provides adaptability to endorsers can boost or decline the amount of monthly pension, when they make the contribution. If an Atal Pension Yojana subscriber wants to change the fixed pension amount, then he can do it once in a year, i.e. in April. Once an endorser joins the APY plan, he will be provided with an acknowledgement receipt by the bank, which will contain the details such as the monthly contribution, PRAN, and guaranteed pension amount.

Operational Work - Atal Pension Yojana:

The Government of India provides the Atal Yojana Scheme and Pension Fund Regulatory and Development Authority (PFRDA) administers it. The APY scheme consists of the National Pension System’s institutional architecture to enrol new endorsers. The account opening form and the offer document of the Atal Pension Yojana scheme are formulated by PFRDA.

Enrolment Agencies:

Aggregators under the service providers (Points of Presence-POP) and the Swavalamban plan would get enrolled through the architecture of National Pension System. Banks, being the POPs or the aggregators can employ micro insurance agents, mutual fund agents, BCs, non-banking aggregators to be the facilitators for the activities linked with operations. Banks are also permitted to share the incentives they get regarding this scheme from the PFRDA or the Government of India, as they find them fit.

Funding of the Atal Pension Yojna:

The Government of India offers a guaranteed fixed pension to the endorsers co-contributes 50% of the total additional amount, annually and also compensates the cost of promotional and developmental activities together with the incentives for making the contribution collection agencies.

Transfer of the existing Swavalamban Plan endorsers to the Atal Pension Yojana:

Current subscribers of the Swavalamban plan will be automatically drifted to the Atal Pension Yojana Scheme, with an extra option of selecting to pull out, provided they fulfil the necessary eligibility criteria. The Government’s five-year co-contribution may not, however, outstrip for all the subscribers. For instance, if a current Swavalamban endorser has received a contribution by Government for two years, then under the APY scheme he will get only 3-years of co-contribution from the Government. If any of the existing Swavalamban endorsers wish to choose out of the APY plan, the contribution by the Government will be given only until the years 2016/2017, if they fall under the eligibility criteria. In addition, such endorsers can persist under the National Pension System Swavalamban plan until they attain the exit age.

The movement will be made chiefly for the endorsers who have attained an age of 18 and 40 years. For the sake to make the changes without any commotion, the aggregator will have to assist the progress of the process of migration by offering complete support. Endorsers who want to get move up to Atal Pension Yojana plan can also get hold of the nearest bank to be a shift from a Swavalamban account to an Atal Pension Yojana account that contains Permanent Retirement Account Number (PRAN) details.

The subscribers of Swavalamban who have attained an age beyond 40 can also choose to abandon the Swavalamban plan by entirely withdrawing the complete amount, all-encompassing of the principal amount and the earned interest on it. Alternatively, they can opt to continue until they attain an age of 60 years, so as to fall under the eligibility criteria to get the annuities.

Investment of Contribution on Monthly Basis-Atal Pension Yojana:

The Pension Fund manages the amounts of contribution collected under the Atal Pension Yojana plan. The Pension Fund Regulatory and Development Authority authorises the Pension Funds. The pattern of investment is as per the regulations of Government of India. The endorsers do not have the choice to select any other investment pattern or pension fund under the APY Plan.

Alerts on the Regular basis for Subscribers of Atal Pension Yojana:

Subscribers of the Atal Pension Yojana scheme can receive alerts on regular basis in regard to the credit of contribution, account balance, and any other activities related to account, via SMS alerts. Subscribers of Atal Pension Yojana can modify specific details such as phone number, the name of the nominee, address etc hassle free whenever they want to do so.

It is necessary to register a valid mobile number under the APY scheme so that the endorsers can be touch via SMS alerts to the respective APY accounts. This will assist in knowing their due dates, make an arrangement of their auto-debits and keep a check on the available balance in the APY accounts.

How can you apply for the Atal Pension Yojana online?

The subscriber form of Atal Pension Yojana is made available online on the websites of banks and another third party. Consumers just have to download the subscriber form, fill-in, the necessary details and submit it to their respective banks. Other mandatory documents also have to be attached and the applicants can get their Atal Pension Yojana account open easily. You cannot make direct applications for the APY scheme in India and it is necessary to submit these forms to any of the nearest branches of the bank.

Application Form of Atal Pension Yojana:

In order to register for the Atal Pension Yojana Scheme, consumers have to present the application form that is available in online mode to the concerned bank together with the ballot of other documents needed. The primary KYC document needed would be Aadhaar Card to identify the spouse of the subscriber, beneficiaries, and nominees so as to avoid disputes regarding entitlement. The Subscriber Registration Form of Atal Pension Yojana is made available in several languages namely, English, Hindi, Marathi, Tamil, Odia, Kannada, Telugu, Gujarati, and Bangla.

The Atal Pension Yojana Subscriber registration form consists of the following fields that the subscriber or applicant has to fill in:

Section 1

(Bank Details)

Section 2

(Personal Details)

Section 3

(Pension Details)

Additional Details-If nominee is a minor

Bank Account Number

Name of the applicant

Pension Amount selected-

1000/2000/3000/4000/5000

Date of Birth

Bank Name

Date of Birth

Monthly Contribution Amount

Name of the Guardian

Bank Branch

Email ID

-

Is the minor a beneficiary of other statutory social security schemes?

-

Marital Status

-

Is the minor an income tax payer?

-

Name of the Spouse

-

-

-

Name of the Beneficiary/Nominee

-

-

-

Relationship of the subscriber with nominee

-

-

-

Age

-

-

-

Mobile Number

-

-

-

Aadhaar Card Details for the subscriber, nominee, and spouse

-

-

The subscriber has to sign Atal Pension Yojana Application form and submit it to the bank. The Atal Pension Scheme form also contains an acknowledgement section by the name “Acknowledgement-Subscriber Registration for Atal Pension Yojana (APY)”, which has to be filled in the respective bank. The applicants do not have to fill this section. The bank will give you back the receipt of acknowledgement once your application gets processed.

NOTE FOR APPLICANT:

A few fields in the application form are marked with a sign of asterisk indicating that all these marked fields have to be necessarily filled. Furthermore, the applicant has to fill the Atal Pension Yojana application form in cursive writing and must be completed by making use of block letters only.

Atal Pension Yojana Calculator:

Every subscriber who joins the Atal Pension Yojana scheme will have queries about the amount of money they should invest and the return of investment they will get. A simple and easy answer to such questions is that the monthly contribution made by the subscriber depends on the amount of fixed pension that he wishes to get and the age at which the subscriber joins the plan. The calculation of the fixed monthly pension would depend on such factors and on the earned interest. If a consumer joins the APY scheme at 18 years of age, then the premium that has to be paid on a monthly basis will be lesser. You can make contributions for the longest period until you reach the age of retirement. If an endorser joins the APY scheme at 40 years of age, then the contribution he makes will be comparatively lesser, as the subscriber will be only 20 years before he reaches 60 years of age. If the subscriber starts making contributions at 18 years of age, then for an amount of pension of Rs. 1000, the contributions made would be around Rs. 42. If a consumer picks for an amount of pension of Rs. 5000, then the highest amount of monthly premium that has to be paid at 40 years of age, is Rs. 1454.

Based on the joining age and the selected fixed amount of pension, the lists below symbolises the amounts of the monthly contribution that have to be paid by the subscribers. Depending on the contribution period, the premium that has to be paid on monthly basis is usually determined. It is suggested that the subscribers must pick to join the Atal Pension Yojna at an early age when there is lower premium and the fixed amount of pension that will be received will be comparatively higher. The guaranteed amount of fixed pension will be paid to the endorser or the spouse.

Calculation Tables of Atal Pension Yojna Scheme:

Atal Pension Scheme Calculator for a donation for Rs. 1000:

If Atal Pension Yojna subscriber picks to receive a fixed pension on a monthly basis of Rs. 1000, then the sum that will be debited from the bank account of the subscriber will be between Rs. 42 and Rs. 291. After the demise of the subscriber and the spouse, the nominee comes in force to receive Rs. 1, 70, 000 according to the calculation plan of Atal Pension Yojana.

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Fixed Monthly Pension to Subscriber/Spouse (in INR)

Return of Corpus to the nominee (in INR)

18

42

42.00

1,000

1.7 Lakh

20

40

50.00

1,000

1.7 Lakh

25

35

76.00

1,000

1.7 Lakh

30

30

116.00

1,000

1.7 Lakh

35

25

181.00

1,000

1.7 Lakh

40

20

291.00

1,000

1.7 Lakh

Atal Pension Scheme Calculator for a donation for Rs. 2000:

If Atal Pension Yojna subscriber picks to receive a fixed pension on a monthly basis of Rs. 2000, then the sum that will be debited from the bank account of the subscriber will be between Rs. 84 and Rs. 582. After the demise of the subscriber and the spouse, the nominee comes in force to receive Rs. 3, 40, 000 according to the calculation plan of Atal Pension Yojana.

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Fixed Monthly Pension to Subscriber/Spouse (in INR)

Return of Corpus to the nominee (in INR)

18

42

84.00

2,000

3.4 Lakh

20

40

100.00

2,000

3.4 Lakh

25

35

151.00

2,000

3.4 Lakh

30

30

231.00

2,000

3.4 Lakh

35

25

362.00

2,000

3.4 Lakh

40

20

582.00

2,000

3.4 Lakh

 

Atal Pension Scheme Calculator for a donation for Rs. 3000:

If Atal Pension Yojna subscriber picks to receive a fixed pension on a monthly basis of Rs. 3000, then the sum that will be debited from the bank account of the subscriber will be between Rs. 126 and Rs. 873. After the demise of the subscriber and the spouse, the nominee comes in force to receive Rs. 5, 10, 000 according to the calculation plan of Atal Pension Yojana.

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Fixed Monthly Pension to Subscriber/Spouse (in INR)

Return of Corpus to the nominee (in INR)

18

42

126.00

3,000

5.1 Lakh

20

40

150.00

3,000

5.1 Lakh

25

35

226.00

3,000

5.1 Lakh

30

30

347.00

3,000

5.1 Lakh

35

25

543.00

3,000

5.1 Lakh

40

20

873.00

3,000

5.1 Lakh

 

Atal Pension Scheme Calculator for a donation for Rs. 4000:

If Atal Pension Yojna subscriber picks to receive a fixed pension on a monthly basis of Rs. 4000, then the sum that will be debited from the bank account of the subscriber will be between Rs. 168 and Rs. 1164. After the demise of the subscriber and the spouse, the nominee comes in force to receive Rs. 6, 80, 000 according to the calculation plan of Atal Pension Yojana.

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Fixed Monthly Pension to Subscriber/Spouse (in INR)

Return of Corpus to the nominee (in INR)

18

42

168.00

4,000

6.8 Lakh

20

40

198.00

4,000

6.8 Lakh

25

35

301.00

4,000

6.8 Lakh

30

30

462.00

4,000

6.8 Lakh

35

25

722.00

4,000

6.8 Lakh

40

20

1164.00

4,000

6.8 Lakh

 

Atal Pension Scheme Calculator for a donation for Rs. 5000:

If Atal Pension Yojna subscriber picks to receive a fixed pension on a monthly basis of Rs. 5000, then the sum that will be debited from the bank account of the subscriber will be between Rs. 210 and Rs. 1454. After the demise of the subscriber and the spouse, the nominee comes in force to receive Rs. 6, 80, 000 according to the calculation plan of Atal Pension Yojana.

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Fixed Monthly Pension to Subscriber/Spouse (in INR)

Return of Corpus to the nominee (in INR)

18

42

210.00

5,000

8.5 Lakh

20

40

248.00

5,000

8.5 Lakh

25

35

376.00

5,000

8.5 Lakh

30

30

577.00

5,000

8.5 Lakh

35

25

902.00

5,000

8.5 Lakh

40

20

1454.00

5,000

8.5 Lakh

 

Atal Pension Yojna Interest/Other Charges:

The subscribers of Atal Pension Yojana have to abide additional charges, overdue interest for non-payments and delayed payments of the amount of monthly contribution, from time to time. Such charges will be imposed and applied as per the norms of the PERDA (Pension Fund Regulatory and Development Authority), with the permission from the Indian Government.

Charges and Fees to maintain an account of Atal Pension Yojana:

Intermediary

 

Charges

Point of Presence

APY Subscriber Registration

Rs. 120-Rs. 150 depending on the number of subscribers

 

Recurring Charges per annum

Rs. 100/subscriber

Central Record-keeping Agencies

APY Account opening charges

Rs. 15/account

 

Account Maintenance Charges

Rs. 40/account/annum

Custodian

Investment

Maintenance Fee (per annum)

0.0075% for electronics/0.05% for physical segment of AUM

Pension Fund Managers

Investment Maintenance Fee (per annum)

0.0102% of AUM

 

Atal Pension Yojna Eligibility:

Eligibility criteria to join the Atal Pension Yojana Scheme are as under:

  • Consumers who hold a valid savings account qualify to open an Atal Pension Yojana account.
  • The age of the applicant must be between 18 and 40 years
  • Each applicant must have a mobile number that he has to register at the time of application.
  • The Government also gives a co-contribution amount to certain subscribers of Atal Pension Yojana.

Atal Pension Yojana Age Limit:

In order to join the Atal Pension Yojna, you must fall between the age of 10 and 40 years. At the time of leaving, the subscribers are required to have attained an age of 60 years. Only after this, they would begin with their guaranteed fixed pension. Depending on the years of entry and exit, the minimum period of contribution would be 20 years or more for a subscriber of Atal Pension Yojana.

Premium Plans of Atal Pension Yojana:

Atal Pension Yojna has five monthly premium plans that they offer to the consumers and the following table will explain the amount, which the subscriber has to contribute every month, so as to receive an amount of fixed pension. The endorsers can select any monthly premium scheme as per the conveniences and according to the fixed pension amount that they receive.

To receive a fixed pension of Rs. 1000, the subscriber has to invest as per the table below:

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Monthly Fixed Pension Amount

18

42

42.00

1,000

20

40

50.00

1,000

25

35

76.00

1,000

30

30

116.00

1,000

35

25

181.00

1,000

40

20

291.00

1,000

 

To receive a fixed pension of Rs. 2000, the subscriber has to invest as per the table below:

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Monthly Fixed Pension Amount

18

42

84.00

2,000

20

40

100.00

2,000

25

35

151.00

2,000

30

30

231.00

2,000

35

25

362.00

2,000

40

20

582.00

2,000

 

To receive a fixed pension of Rs. 3000, the subscriber has to invest as per the table below:

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Monthly Fixed Pension Amount

18

42

126.00

3,000

20

40

150.00

3,000

25

35

226.00

3,000

30

30

347.00

3,000

35

25

543.00

3,000

40

20

873.00

3,000

 

To receive a fixed pension of Rs. 4000, the subscriber has to invest as per the table below:

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Monthly Fixed Pension Amount

18

42

168.00

4,000

20

40

198.00

4,000

25

35

301.00

4,000

30

30

462.00

4,000

35

25

722.00

4,000

40

20

1164.00

4,000

 

To receive a fixed pension of Rs. 5000, the subscriber has to invest as per the table below:

Joining Age (in years)

Contribution Period (in years)

Monthly Contribution (in INR)

Monthly Fixed Pension Amount

18

42

210.00

5,000

20

40

248.00

5,000

25

35

376.00

5,000

30

30

577.00

5,000

35

25

902.00

5,000

40

20

1454.00

5,000

 

Atal Pension Yojna Penalty Charges:

The Atal Pension Yojana plan needs subscribers to contribute regularly on monthly basis without any halt in the payments. If the endorser does not pay the premium regularly or stops making a contribution, then the related bank can impose penalty charges as fixed by the Government. The extra penalty charges that are imposed range from Re. 1 to Rs. 10 each month. This fixed amount of penalty or the interest must be a portion of the corpus of pension of the one who contributes.

  • If the amount of contribution is up to Rs. 100, then the amount of penalty would be Re. 1, each month.
  • If the amount of contribution is between Rs. 101 and Rs. 500, then the amount of penalty would be Rs. 2 each month.
  • If the amount of contribution is between Rs. 501 and Rs. 1000, then the amount of penalty would be Rs. 5 each month.
  • If the amount of contribution is more than Rs. 1001, then the amount of penalty would be Rs. 10 each month.

On the accounts of Atal Pension Yojana where the payments are suspended the measures mentioned below will be taken:

  • If the payments are not made for 6 months, the account of the subscriber would get frozen.
  • If the subscriber does not make payment for twelve months his account would get deactivated.
  • If the subscriber does not make payment for twenty-four months his account would be closed permanently.

In order to steer clear of late or delayed payments, the module of Atal Pension Yojana will continuously raise a demand with the subscriber on the due date, until he makes the payment. The contribution made on monthly basis is recovered usually on day one of the calendar month and the concerned bank will also be permitted to regain the necessary contribution amount on any day of the month. The amount of monthly contribution will be received on FIFO basis, i.e. the earlier due amount will be received first together with the fixed penalty charges. The concerned bank also has an option to recover more than a single contribution in a month, provided that the subscriber has the necessary funds. The bank will receive together with the fixed due amount monthly.

How to join – Atal Pension Scheme

You can enroll for the Atal Pension Scheme if you have a savings account with auto debit facility. If you don’t have an account, you can join after opening one in any of the nationalized banks under Jan Dhan Yojna. No charges are levied by the bank for this account. Mobile number and Aadhar card number are the only mandatory requirements on the APS form. One should also keep the minimum balance in the account which would be auto debited every month, as contribution through this scheme is possible only via a savings account with auto debit facility. Due date for contribution can be the 1st of every month or any other day of the month as opted by subscriber. Banks would send timely SMS alerts regarding account information, due date etc.

Contribution amount

The amount of contribution you would have to make depends on the age of the member. So, the amount of contribution will be less if one joins early and more if one joins late. Flexible payment options like monthly, quarterly or half yearly are available.

Atal Pension Yojana - Example 1:

Monthly pension of Rs. 3000 and a corpus amount of Rs.5.1 Lakhs

If one joins the scheme at 18 years of age, the contribution amount would be Rs. 126/month and the same will be Rs. 873/month for a 40 year old.

Atal Pension Yojana - Example 2:

Monthly pension of Rs. 5000 and a corpus amount of Rs.8.5 lakhs

If one joins the scheme at 25 years of age, the contribution amount would be Rs.376/month and the same will be Rs. 902/month for a 40 year old.

Likewise, contribution amount is calculated for people of different age groups depending on the years of contribution and age. One can also opt to increase or decrease the amount of pension but this option would be available once in a year in the month of April.

Penalty

If one fails to maintain the minimum contribution balance in account on the date of auto debit, a fixed amount of penalty/charge would be applicable.

This penalty amount will remain part of the pension corpus and discontinuation of contribution will lead to the following-

  • Account will be frozen after 6 months
  • Account will be deactivated after 12 months
  • Account will be closed after 24 months

Payment of Pension

On completion of 60 years, the subscriber will have to submit a request to the bank, to draw the guaranteed pension amount. In case of death of the subscriber, the beneficiary will get the corpus amount and if the beneficiary is not alive at the time of payment, the nominee will get the corpus fund.

Initiated and backed by the Government of India, Atal Pension Plan is for the poor and the under-privileged workers of unorganized sector. The scheme aims to help them save for old age. Go ahead and educate people around you so that they can avail maximum benefit of this scheme.

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