Atal Pension Yojana, minimum investment maximum benefits during old age, is an initiative by Government of India.
Atal Pension Yojana is a new scheme recently launched by Government of India on 1st June 2015 as announced in 2015-16 budget. Atal Pension Yojana is an initiative by the Government of India, over the concerns of old age income security of the working poor. It not only encourages but also enables them to save for their retirement.
Objective of the atal pension scheme
The main objective for launching the Atal Pension Yojana is to tackle the longevity among the poor workers in unorganized sector. Encourage them voluntarily save for their retirement, by joining National Pension System.
Benefits of the scheme, Atal Pension Yojana:
- Under the Atal Pension Yojana, the assured minimum monthly fixed pension for the subscriber ranges between Rs. 1,000/- to Rs. 5,000/- per month.The benefit of minimum pension would be assured by the Government of India.
- The Government of India will also co-contribute 50% of the subscriber’s contribution or Rs. 1,000/- per annum, whichever is lower. Government co-contribution is available for those only who are not covered by any Statutory Social Security Schemes and is not income tax payer.
- Government of India will co-contribute to each eligible subscriber, for a period of 5 years who joins the scheme between the period of 1st June, 2015 to 31st December 2015. The benefit of five years of government co-contribution under Atal Pension Yojana would not exceed 5 years for all subscribers including migrated Swavalamban beneficiaries.
- All bank account holders may join Atal Pension Yojana.
Who is eligible for the scheme, Atal Pension Yojana?
The Atal Pension Yojana is applicable to all citizen of India aged between 18 to 40 years. Aadhaar will be the primary KYC for this scheme. Aadhaar and mobile number to be provided by the subscriber for the ease of operation of the scheme. If Aadhaar is not available at the time of registration, the Aadhar details may also be submitted later.
Even the government employee are eligible to participate in Atal Pension Yojana. But they will not get the benefit of the government contribution.
How much does the subscriber need to contribute for Atal Pension Yojana?
Under the Atal Pension Yojana there are five fixed monthly plans available, subscriber can opt for. Each plan offers different pension amount at different age. The subscriber has to contribute amount as per monthly plan they have opted for. For example, if a subscriber requires to receive Rs. 5000/- as monthly pension and he is 30 years old, then he will have to contribute Rs. 577/- per month for 30 years. This monthly fixed pension will be received by the subscriber or his spouse, in case of the subscriber’s demise.
Check here for Atal Pension Yojana monthly premium plan for complete guide.
How does the subscriber enroll for Atal Pension Yojana?
This scheme is open to all bank account holders, hence enrolling in this scheme the subscriber must have an operative bank account. He can download the form from Official Website http://www.jansuraksha.gov.in, fill it and submit it to the bank. He can also approach his bank, fill and submit the form. Filling the form requires subscribers complete details including bank account number along with spouse and nominee details. Aadhaar, being the primary KYC, has to be submitted along with the form. Thus this ensures the verification of the beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term.
Note: Nominee other than spouse should be mentioned, as spouse is considered the default nominee. Thus in case, demise of both the subscriber and his spouse, nominee, any one from the family would get the benefit.
This scheme can also be enrolled by approaching any insurance agent, mutual fund agent or the micro-agent who is working for the bank.
Penalty for default
Under Atal Pension Yojana, the individual subscribers have to make the contribution on a monthly basis. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Rs. 1 per month to Rs. 10 per month as shown below:
- Rs. 1 per month for contribution up to Rs. 100/- per month.
- Rs. 2 per month for contribution up to Rs. 101/- to 500/- per month.
- Rs. 5 per month for contribution up to Rs. 501/- to 1000/- per month.
- Rs. 10 per month for contribution beyond Rs. 1001/- per month.
The fixed amount of interest / penalty will remain as part of the pension corpus of the subscriber.
Important information for subscriber
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
Exit and pension payment
Upon completion of 60 years of age, the subscriber can request to the associated bank for drawing the guaranteed monthly pension. Exit before 60 years of age is not permitted, however, it is permitted only in exceptional circumstances, i.e., in the event of the death of the beneficiary or terminal disease.
In case of death of the subscriber due to any reason: In case of death of subscriber pension would be available to the spouse and on death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
Check here for complete Atal Pension Yojana Return of CorpusThe official website of the scheme is www.jansuraksha.gov.in.
National Toll-Free No – 1800-180-1111 / 1800-110-001
StateWise Toll free number are listed in the document attached Statewise Toll-Free (pdf)