APY

Atal Pension Yojana (APY) is an old age income security scheme for a savings account holder in the age group of 18-40 years, who is not an income tax-payee. It helps to address longevity risks among workers in unorganized sector and encourages the workers to voluntarily save for retirement.

Atal Pension Yojana (APY) is an old age income security scheme for a savings account holder in the age group of 18-40 years who is not an income tax-payee. The scheme helps in addressing the longevity risks among the workers in the unorganized sector and encourages the workers to voluntarily save for their retirement.

#### Focus of APY

The scheme is mainly targeted at the poor, the under-privileged and workers in the unorganized sector.

#### APY Subscriber Contribution Chart -

https://www.npscra.nsdl.co.in/nsdl/scheme-details/APY_Subscribers_Contribution_Chart_1.pdf

#### Charges and fees and overdue interest under APY:

The charges and fees and the overdue interest for non-payment or delayed payment of prescribed contribution amount shall be levied on the subscribers of APY. These charges and their method of application shall be prescribed by PFRDA from time to time, in consultation with the Central Government.

##### Raising Grievance Under APY

A subscriber can raise grievance anytime free of cost from anywhere by visiting: www.npscra.nsdl.co.in

>>Home >> select: NPS-Lite or through CGMS Subscriber raising the grievance will be allotted a token number against the grievance raised. Subscriber may check the status of the grievance under “Check the status of Grievance / Enquiry already registered”.

#### Age of joining and contribution period

• The minimum age of joining APY is 18 years and maximum is 40 years.
• The age of exit and start of pension is 60 years.
• Subscriber contribution to APY shall be made through the facility of ‘auto-debit’ of the prescribed contribution amount from the savings bank account of the subscriber on monthly, quarterly or half-yearly basis.
• The subscribers are required to contribute the prescribed contribution amount from the age of joining APY till the age of 60 years.

#### Upon exit on attaining 60 years

The subscriber shall receive the following three benefits on attaining the age of 60:

(i) Guaranteed minimum pension amount: Each subscriber under APY shall receive a guaranteed minimum pension of Rs. 1000/- per month or Rs. 2000/- per month or Rs. 3000/- per month or Rs. 4000/- per month or Rs. 5000/- per month, after the age of 60 years until death.

(ii) Guaranteed minimum pension amount to the spouse: After the subscriber’s demise, the spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber,until death.

(iii) Return of the pension wealth to the nominee of the subscriber: After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till the subscriber's age of 60 years.

Contributions to the Atal Pension Yojana (APY) are eligible for tax benefits similar to the National Pension System (NPS) under section 80CCD(1).

#### Voluntary exit (Exit before 60 Years of age):

The subscriber shall be refunded only the contributions made by him to APY alongwith the net actual accrued income earned on his contributions (after deducting the account maintenance charges).

However, in case of subscribers who joined the scheme before 31st March 2016 and have received the Government Co-Contribution, shall not receive the same including the accrued income earned thereon.

#### For death before 60 years

Option 1: In case of death of the subscriber before 60 years, option will be available to the spouse of the subscriber to continue contribution in the APY account of the subscriber, which can be maintained in the spouse’s name, for the remaining vesting period, till the original subscriber would have attained the age of 60 years. The spouse of the subscriber shall be entitled to receive the same pension amount as the subscriber until death of the spouse. Such APY account and pension amount would be in addition even if the spouse has his/her APY account and pension amount in own name.

Option 2: The entire accumulated pension corpus till date under APY will be returned to the spouse / nominee.

From 1st October, 2022, any citizen who is or has been an income tax payer, shall not be eligible to join APY.

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