Atal Pension Yojana (APY) – Eligibility and Benefits

What is the Atal Pension Yojana (APY) Scheme?

The Atal Pension Yojana (APY) is a government-sponsored retirement plan in India. It is mainly designed for workers in the unorganised sector. Any Indian citizen aged between 18 and 40 years having a savings bank or post office savings account is eligible to join APY. However, income-tax payers are not eligible to open a new APY account from 1 October 2022.

The purpose of the Atal Pension Yojana is to offer you financial stability during your retirement years. This pension scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA). The Government of India previously provided co-contributions to eligible subscribers who joined between 1 June 2015 and 31 March 2016. This benefit is not available for new subscribers.

Under the APY scheme, you make regular contributions to your pension account. Once you cross 60 years, you will get a pension from ₹1,000 to ₹5,000 a month based on your contribution.

Atal Pension Yojana Key Features

The key features of Atal Pension Yojana (APY) are mentioned below:

• Enrollment: You can join APY through any bank branch, post office, or digital platform offered by your bank.

• Nomination: When creating an APY account, you must provide nominee and spouse information.

• Contribution Frequency: Contribute monthly, quarterly, or every six months through auto-debit from your savings bank account.

• Accessing Statements: Subscribers can view and download their transaction statements and e-PRAN through the CRA portal or the APY mobile application.

• Annual Account Statement: APY account statements can be accessed online through the CRA portal or mobile application.

• Account Maintenance Charges: APY Account is charged applicable maintenance charges as per the scheme guidelines.

• Penalty for Missed Contributions: Delay in payment of contribution may lead to a penalty of ₹1 for every ₹100 of contribution payable each month.

Atal Pension Yojana Benefits – Advantages of APY Scheme

The Atal Pension Yojana (APY) offers a number of benefits to its subscribers, making it an attractive option for retirement planning, especially for those in the unorganised sector:

• Government Co-Contribution: Eligible APY subscribers who joined between 1 June 2015 and 31 March 2016 received a Government co-contribution of 50% of their annual contribution or ₹1,000 per year, whichever was lower, for five years (FY 2015-16 to FY 2019-20). The benefit was available only to non-income-tax payers who were not covered under any statutory social security scheme and is no longer available for new subscribers.

• Tax Benefits: Contributions made to the Atal Pension Yojana may be eligible for tax benefits under the applicable provisions of the Income-tax Act, subject to the applicable tax regime and eligibility conditions.

• Death Benefit: The spouse receives the same pension if the subscriber dies. If the spouse is also deceased, the nominee gets the accumulated corpus.

• Exit Option: Subscribers may voluntarily exit APY before attaining 60 years. On voluntary exit, the subscriber receives their own contributions along with accrued income after applicable deductions. If government co-contribution has been received, it is not refunded.

• Pension Distribution on Death: The APY plan gives financial assistance to the subscriber's family in case the subscriber dies.

• Death Before 60 Years: If the subscriber dies before 60 years of age, the spouse can either continue the APY account until the subscriber would have attained 60 years and receive the pension or close the account and receive the accumulated corpus.

• Death After 60 Years: If the subscriber dies after the pension starts, the spouse receives the same monthly pension. In case of death of subscriber and spouse, nominee will get the accumulated pension corpus.

Atal Pension Yojana Age Limit Criteria

The Atal Pension Yojana age limit criteria for enrolment are as follows:

• Minimum Age: 18 years old

• Maximum Age: 40 years old

NOTE:

• APY contributions must be made for at least 20 years. The Atal Pension Yojana benefits start at the age of 60.

• Individuals who were enrolled under the Swavalamban Yojana will be automatically migrated to the Atal Pension Yojana.

APY and NPS Lite – APY Mobile Application

The APY Mobile App is provided by Protean CRA, under the PFRDA, and lets the subscribers view their contributions, download statements and e-PRAN and get APY account services.

• Check Your Contributions: The APY mobile app lets you check your recent contributions at no cost. You can see your last five transactions anytime.

• Get Important Documents: Download your transaction statement and e-PRAN without any extra charges. It is simple and quick.

• Available on Android: You can download the APY Mobile App from the Google Play Store or access it through the official Protean CRA portal.

How to Open an Atal Pension Yojana Account?

You can open an Atal Pension Yojana Scheme account in two ways: online or by visiting a Point of Presence-Service Provider (PoP-SP):

1. Atal Pension Yojana - Online Apply

   You can apply for Atal Pension Yojana online through the official APY portal by completing the registration and KYC process.

   • Visit the APY Portal: Go to the official APY online registration portal and check whether your Aadhaar is really linked with your registered mobile number.

   • Enter Personal Information: After that enter your savings account number, aadhaar number, email ID and other required details.

   • Select a Pension Option: Select your monthly pension amount and check your contribution information.

   • Complete KYC: Complete KYC online by uploading the relevant papers.

   • Review and Submit: Review all the information you have submitted and submit your application.

   • Receive Confirmation: On successful registration you'll receive an acknowledgement paper and your APY account will be setup.

2. Through PoP-SP (Bank Branch/Post Office)

   You can also join Atal Pension Yojana scheme through the nearest authorised bank branch or post office or any other PoP-SP.

   • PoP-SP: At first visit your nearest bank branch, post office or other licensed Point of Presence-Service Provider (PoP-SP).

   • Request the APY form: Now collect Atal Pension Yojana Registration Form.

   • Application Form Filling: Fill all the Mandatory Personal, Nominee and Bank Account details.

   • Supporting Documents: Please attach the fully completed form with all of the required KYC documents.

   • Submit Application: To successfully complete the verification process, submit the form and all supporting evidence to the PoP-SP representative.

   • Confirm Registration: After proper validation, your APY account shall be registered and the gift shall be credited to your bank account.

How to Download Atal Pension Yojana Form?

When you complete registration, they send you an acknowledgement of your APY registration and your APY account will be created.

• Step 1: Visit the official PFRDA Forms page.

• Step 2: Check for "APY Subscriber Registration Form" under APY Forms tab.

• Step 3: Select the form in the language you prefer.

• Step 4: Download the PDF form, print it off and send it to a participating bank branch or post office.

Checkout Form Atal Pension Yojana: Atal Pension Yojana Form

Atal Pension Yojana Contribution

Your contribution to a pension plan is lower when you start younger. The younger you join the Atal Pension Yojana (APY), the lower your required contributions will be.

The following mentions a comparison of the monthly contribution rates for an 18-year-old and a 40-year-old based on their chosen pension slab in the Atal Pension Yojana Scheme.

Upon the death of both the subscriber and the spouse, the guaranteed corpus payable to the nominee ranges from ₹1.7 lakh to ₹8.5 lakh, depending on the selected pension amount.

Note: The Central Recordkeeping Agency (CRA) may send SMS alerts to the subscriber's registered cellphone number on contribution status and other crucial updates.

How to Change Your APY Contribution Amount?

The Atal Pension Yojana (APY) subscribers can change their guaranteed pension amount in the following manner:

• Annual Modification: PFRDA will notify a modification opportunity in which you can increase or decrease the guaranteed pension amount once.

• Refund on Downgrade: Any excess contribution collected on Downgrade of pension amount would be repaid with the returns generated as per APY norms.

• Modification Fee: There will be a charge of ₹50 for every request of upgrade or downgrade.

Charges for Default in APY Contribution Payment

Default charges are collected for delayed payments and will be included in the pension corpus of the subscriber of the Atal Pension Yojana Scheme:

What If You Can't Contribute to the APY Scheme?

Keep the following key points in mind before you miss out on your APY contributions:

• If you stop contributing, your account is frozen after 6 months.

• If you haven't contributed for 12 months, your account will be deactivated.

• If you haven't contributed for 24 months, your account is closed.

Where Are Your APY Contributions Invested?

The contributions under the Atal Pension Yojana (APY) are invested in accordance with the investment criteria set out by the Pension Fund Regulatory and Development Authority (PFRDA). APY is a government-backed defined benefit pension scheme and the pension amount specified, subject to the scheme rules, can be provided to the subscriber on a monthly basis as pension.

The investment decisions are managed under the APY framework prescribed by PFRDA, and subscribers do not have the option to choose or modify the investment allocation.

Atal Pension Yojana Calculator

The Policybazaar Atal Pension Yojana Calculator allows you to estimate the monthly contribution you would need to make to get a desired pension amount after retirement.

Here is how to access the Calculator of Atal Pension Yojana from Policybazaar:

• Search for "Policybazaar Atal Pension Yojana Calculator" or "APY Calculator Policybazaar".

• The calculator will ask you to choose the desired pension amount you'd like to receive after retirement. There are options for ₹1000, ₹2000, ₹3000, ₹4000, and ₹5000.

• Once you enter your desired pension amount, the calculator will show you the range of monthly contributions you would need to pay based on your current age.

How to Change Contribution Frequency in Atal Pension Yojana?

• To alter your contribution frequency (e.g., from quarterly to monthly or from half-yearly to quarterly), you need to submit a written request to your APY-SP branch. Provide a simple letter outlining your desired change and submit it to your nearest APY-SP branch.

How to Exit from the APY Scheme?

You can exit from Atal Pension Yojana (APY) only if you are exiting the plan voluntarily before the age of 60 years or due to death of the subscriber.

1. Steps to Exit from APY Before Age 60

   • Step 1: Fill out the APY Voluntary Exit Form.

   • Step 2: The form can be obtained from PFRDA's official website or your APY Service Provider (APY-SP).

   • Step 3: To submit, fill out the form and attach the necessary documents at your APY-SP branch.

   Note: Do not close the savings bank account linked to your APY account until the closure proceeds have been credited to your account.

2. Steps to Exit from APY Due to Death

   • Step 1: Submit the APY Closure Form (Death) and copy the death certificate of the subscriber to the APY-SP branch.

   • Step 2: If the subscriber demises after initiation of pension, the promised monthly pension is provided to the spouse.

   • Step 3: If both the subscriber and the spouse are deceased, the accumulated corpus is paid to the nominee.

   • Step 4: If the subscriber dies before completing 60 years, his spouse can continue the APY account till the subscriber would have finished the age of 60 years and get the matching pension payments thereafter.

Atal Pension Yojana vs. Other Pension Schemes

The table below explores the difference between Atal Pension Yojana and other Pension Schemes.

Accessibility and Support for Atal Pension Yojana Scheme

Forms and documents related to the Atal Pension Yojana are available in multiple regional languages and accessible formats on request. Please ask your APY provider for details.

Contact Information

• APY Helpline: 1800-110-069 (toll free)
• Email Support: grc@pfrda.org.in
• Official Website: Visit the Protean CRA APY Portal (https://apy.nps-proteantech.in) or PFRDA (https://www.pfrda.org.in)