3/8/2015

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PressInformationBureau
GovernmentofIndia
MinistryofFinance
01March201520:15IST

IntroductionoftheAtalPensionYojana

TheGovernmentofIndiaisextremelyconcernedabouttheoldageincomesecurity
of the working poor and is focused on encouraging and enabling them to join the
NationalPensionSystem(NPS).Toaddressthelongevityrisksamongtheworkers
in unorganised sector and to encourage the workers in unorganised sector to
voluntarilysavefortheirretirement,whoconstitute88%ofthetotallabourforceof
47.29croreasperthe66thRoundofNSSOSurveyof201112,butdonothaveany
formalpensionprovision,theGovernmenthadstartedtheSwavalambanSchemein
201011.However,coverageunderSwavalambanSchemeisinadequatemainlydue
tolackofclarityofpensionbenefitsattheageafter60.

2.TheFinanceMinisterhas,therefore,announcedanewinitiativecalledAtal
PensionYojana(APY)inhisBudgetSpeechfor201516.TheAPYwillbefocussed
on all citizens in the unorganised sector, who join the National Pension System
(NPS) administered by the Pension Fund Regulatory and Development Authority
(PFRDA)andwhoarenotmembersofanystatutorysocialsecurityscheme.Under
theAPY,thesubscriberswouldreceivethefixedpensionofRs.1000permonth,
Rs.2000permonth,Rs.3000permonth,Rs.4000permonth,Rs.5000permonth,
attheageof60years,dependingontheircontributions,whichitselfwouldvaryon
the age of joining the APY. The minimum age of joining APY is 18 years and
maximum age is 40 years. Therefore, minimum period of contribution by the
subscriber under APY would be 20 years or more. The benefit of fixed pension
would be guaranteed by the Government. The Central Government would also co
contribute50%ofthesubscriberscontributionorRs.1000perannum,whicheveris
lower,toeacheligiblesubscriberaccount,foraperiodof5years,i.e.,from201516
to 201920, who join the NPS before 31st December, 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,
unlesstheyoptout.
3.AcopyoftheNoteonAPYisenclosed.
NoteonAtalPensionYojana

BenefitofAPY:FixedpensionforthesubscribersrangingbetweenRs.1000toRs.
5000, if he joins and contributes between the age of 18 years and 40 years. The
contribution levels would vary and would be low if subscriber joins early and
increaseifhejoinslate.
Eligibility for APY: Atal Pension Yojana (APY) is open to all bank account
holderswhoarenotmembersofanystatutorysocialsecurityscheme.
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Ageofjoiningandcontributionperiod:TheminimumageofjoiningAPYis18
yearsandmaximumageis40years.Therefore,minimumperiodofcontributionby
thesubscriberunderAPYwouldbe20yearsormore.
FocusofAPY:Mainlytargetedatunorganisedsectorworkers.
Enrolment and Subscriber Payment: All bank account holders under the
eligible category may join APY with autodebit facility to accounts, leading to
reductionincontributioncollectioncharges.
Enrolmentagencies:AllPointsofPresence(ServiceProviders)andAggregators
under Swavalamban Scheme would enrol subscribers through architecture of
NationalPensionSystem.
Operational Framework of APY: It is Government of India Scheme, which is
administered by the Pension Fund Regulatory and Development Authority. The
InstitutionalArchitectureofNPSwouldbeutilisedtoenrolsubscribersunderAPY.
Funding of APY: Government would provide (i) fixed pension guarantee for the
subscribers(ii)wouldcocontribute50%ofthesubscribercontributionorRs.1000
perannum,whicheverislower,toeligiblesubscribersand(iii)wouldalsoreimburse
the promotional and development activities including incentive to the contribution
collectionagenciestoencouragepeopletojointheAPY.
Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of
Corpustothenomineeofsubscribers
TheTableofcontributionlevels,fixedmonthlypensiontosubscribersandhisspouse
andreturnofcorpustonomineesofsubscribersandthecontributionperiodisgiven
below.Forexample,togetafixedmonthlypensionbetweenRs.1,000permonth
andRs.5,000permonth,thesubscriberhastocontributeonmonthlybasisbetween
Rs. 42 and Rs. 210, if he joins at the age of 18 years. For the same fixed pension
levels, the contribution would range between Rs. 291 and Rs. 1,454, if the
subscriberjoinsattheageof40years.
Table of contribution levels, fixed monthly pension of Rs. 1,000 per month to
subscribersandhisspouseandreturnofcorpustonomineesofsubscribersand
thecontributionperiodunderAtalPensionYojana
Age of Years
of Indicative
Joining Contribution
Monthly
Contribution
(inRs.)
18
20
25
30
35

42
40
35
30
25

42
50
76
116
181

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Monthly
Pension to the
subscribers and
hisspouse
(inRs.)
1,000
1,000
1,000
1,000
1,000

Indicative Return
of Corpus to the
nominee of the
subscribers
(in
Rs.)
1.7Lakh
1.7Lakh
1.7Lakh
1.7Lakh
1.7Lakh
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40

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20

291

1,000

1.7Lakh

Table of contribution levels, fixed monthly pension of Rs. 2,000 per month to
subscribersandhisspouseandreturnofcorpustonomineesofsubscribersand
thecontributionperiodunderAtalPensionYojana

Age of Years
of Indicative
Monthly Pension Indicative Return
Joining Contribution
Monthly
tothesubscribers of Corpus to the
Contribution
andhisspouse
nominee of the
(inRs.)
(inRs.)
subscribers
(inRs.)
18
42
84
2,000
3.4lakh
20
40
100
2,000
3.4lakh
25
35
151
2,000
3.4lakh
30
30
231
2,000
3.4lakh
35
25
362
2,000
3.4lakh
40
20
582
2,000
3.4lakh

Table of contribution levels, fixed monthly pension of Rs. 3,000 per month to
subscribersandhisspouseandreturnofcorpustonomineesofsubscribersand
thecontributionperiodunderAtalPensionYojana

Age of Years
of Indicative
Monthly Pension Indicative Return
Joining Contribution
Monthly
tothesubscribers of Corpus to the
Contribution
andhisspouse
nominee of the
(inRs.)
(inRs.)
subscribers
(inRs.)
18
42
126
3,000
5.1Lakh
20
40
150
3,000
5.1Lakh
25
35
226
3,000
5.1Lakh
30
30
347
3,000
5.1Lakh
35
25
543
3,000
5.1Lakh
40
20
873
3,000
5.1Lakh

Table of contribution levels, fixed monthly pension of Rs. 4,000 per month to
subscribersandhisspouseandreturnofcorpustonomineesofsubscribersand
thecontributionperiodunderAtalPensionYojana
Age of Years
of Indicative
Monthly
Indicative Return
Joining Contribution
Monthly
Pension to the of Corpus to the
Contribution
subscribers and nominee of the
(inRs.)
hisspouse
subscribers
(in
(inRs.)
Rs.)
18
42
168
4,000
6.8Lakh
20
40
198
4,000
6.8Lakh
25
35
301
4,000
6.8Lakh
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30
35
40

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30
25
20

462
722
1164

4,000
4,000
4,000

6.8Lakh
6.8Lakh
6.8Lakh

Table of contribution levels, fixed monthly pension of Rs. 5,000 per month to
subscribersandhisspouseandreturnofcorpustonomineesofsubscribersand
thecontributionperiodunderAtalPensionYojana
Age of Years
of Indicative
Joining Contribution
Monthly
Contribution
(inRs.)

Monthly Pension
tothesubscribers
andhisspouse
(inRs.)

18
20
25
30
35
40

5,000
5,000
5,000
5,000
5,000
5,000

42
40
35
30
25
20

210
248
376
577
902
1,454

Indicative Return
of Corpus to the
nominee of the
subscribers
(inRs.)
8.5Lakh
8.5Lakh
8.5Lakh
8.5Lakh
8.5Lakh
8.5Lakh

******
DSM/KA

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