To address the long live risks of the workers in the unorganised sector and to encourage them to voluntarily save for their retirement, government introduced Atal Pension Yojna (APY) because for the worker of unorganised sector there is no any formal pension provision.
What is Atal Pension Yojna (APY)?
Atal Pension Yojana (APY), a guaranteed Pension Scheme for citizens of India announced by the Government of India, in the budget speech for 2015-16, is focused on the unorganised sector workers which constitute more than 85% of workforce. The Government of India is extremely concerned about the old age income security of the working poor and is focused on encouraging and enabling them to join the National Pension System (NPS).
In 2010-11, government had started Swavalamban Scheme for the worker of this sector but it is inadequate for worker of unorgsnised sector, due to lack of clarity of pension benefits at age 60 or after that.
Who will join this initiative?
The APY will be focussed on all citizens in the unorganised sector, who are not members of any statutory social security scheme, and who are also not taxpayer.
Who will administer this initiative?
Administered by the Pension Fund Regulatory and Development Authority (PFRDA).
The Central Government would also co-contribute 50% of the subscriber’s contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, i.e., from 2015-16 to 2019-20, who join the NPS before 31stDecember, 2015 and who are not income tax payers. The APY would be launched from 1st June, 2015. The existing subscribers of Swavalamban Scheme would be automatically migrated to APY, unless they opt out.
The Spouse of the Subscriber is also eligible for pension and the nominee would be receiving the accumulated pension wealth.
APY is offered by all the banks and post .
Amount payable to subscriber
Under APY, subscriber would receive minimum fixed pension amount of 1,000 to maximum fixed pension amount of 5,000, depending upon their contributions. This amount would vary on the age of joining APY.
Minimumage of joining is 18 years & maximum age of joining is 40 years. So, according to it, minimum period of contribution is 20 years and maximum period of contribution is upto 42 years.