ATAL
PENSION YOJANA - GOVERNANCE
News:
Atal Pension Yojana:
Online facility to ease onboarding and seeding of Aadhaar for APY subscribers
What's
in the news?
●
The government of India launched the Atal
Pension Yojana (APY) to promote a society inclusive of pensions and give all
Indian citizens working in the unorganised
sector a way to guarantee their income in old age.
Key
takeaways:
●
The Pension
Fund and Regulatory and Development Authority (PFRDA) has issued a master
circular on the online facility to ease onboarding and seeding of Aadhaar for
APY subscribers. The master circular was issued on January 31, 2024.
Atal
Pension Yojana:
●
Atal Pension Yojana (APY) addresses the old age income security of the working
poor.
●
It is focused on the unorganized sector
workers.
●
It encourages the workers in the
unorganised sector to voluntarily
save for their retirement.
Eligibility:
●
Any citizen of India can join the APY
scheme.
●
The age of the subscriber should be
between 18-40 years.
○
The contribution levels would vary and
would be low if a subscriber joins early and increases if she joins late.
●
The benefits of the scheme will arise to
the subscribers on attaining the age of 60 years.
Nodal
Authority:
●
It is administered by the Pension Fund
Regulatory and Development Authority (PFRDA).
Nodal
Ministry:
●
Ministry of Finance
Features:
●
Fixed pension for the subscribers ranging
between Rs.1000 to Rs. 5000 from the age
of 60 years, depending upon his contribution.
●
The same pension is payable to Spouse after death of Subscriber.
●
Return of indicative pension wealth to nominees after death of spouse.
●
Similar to the National Pension System
(NPS), contributions to the Atal Pension Yojana (APY) are eligible for tax
benefits.
●
In case of premature death of subscriber
(death before 60 years of age), spouse of the subscriber can continue
contribution to APY account of the subscriber, for the remaining vesting
period, till the original subscriber would have attained the age of 60 years.
●
The minimum pension would be guaranteed by
the Government, i.e., if the accumulated corpus based on contributions earns a
lower than estimated return on investment and is inadequate to provide the
minimum guaranteed pension, the Central Government would fund such inadequacy.
Alternatively, if the returns on investment are higher, the subscribers would
get enhanced pensionary benefits.