The scheme Atal pension Yojana main motto is to bring pension benefits to people of the unorganized sector so that they can enjoy social security with a minimum contribution per month. Because the young population is going to be pension-less this was initiated by the success of the program Pradhan Mantri Jan Dhan Yojana the main theme of this program is “I propose to work towards creating a universal social security system for all Indians that will ensure that no Indian citizen will have to worry about illness, accidents or penury in old age”, these are the words in 2015-16 Union Budget speech by the finance minister Jaitley. In keeping with this ideal, a National Pension Scheme, the Atal Pension Yojana was effected from May, 2015.
The range of pension for single person is of INR 1,000 or 2,000 or 3,000 or 4,000 or 5,000 on attaining the age of 60. Normally people who work in the private sector are employed in occupations that do not give them the benefit of pension can apply for this scheme. Based on the age and contribution pension will be decided. So, if person was commenced to death then the spouse can claim the pension. If spouse was also commenced to death then the nominee can claim the pension.
Normally the amount collected under the scheme is to be managed by PFRDA (Pension Funds Regulatory Authority of India as per the investment pattern provided by the Government of India. Normal applicants will not have any choice of pension funds or investment allocation.
Benefits of Atal Pension Yojana (APY)
The Atal Pension Scheme will bring security to ageing Indians while at the same time encourage a culture of savings and investment among the lower and lower middle class units of society. One of the greatest benefits of the scheme may be enjoyed by the poorer sections of society. The government of India has decided to contribute 50 percent of the user’s contribution or INR 1,000 a year (whichever is lower) for a period of five years. This contribution will, however, be enjoyed only by those who are not income tax payers and those who join the scheme before 31 December 2015.
Atal Pension Yojana Chart:
In the below chart will explain you how much an individual to contribute to receive the various minimum pension
Eligibility for Atal Pension Yojana?
The Atal Pension Yojana (APY) is open source to all Indians between the age of 18 and 40. This allows an individual to contribute for at least 20 years before reaping the benefits of the scheme. Any bank account holder who is not a member of any statutory social security scheme can avail of the scheme.
All existing members of the government’s ‘Swavalamban Yojana NPS Lite’ will automatically be migrated to the Atal Pension Yojana. It will now replace the Swavalamban scheme, which did not gain much popularity across the country. As a matter of fact, a majority of people in India have their saving accounts in State Bank of India and this why this article becomes quite relevant when it comes to Atal Pension Yojana.
If you plan to open an account with Atal Pension Yojana in State Bank of India, you would need to do the following:
- Download the Atal Pension Yojana Form from SBI’s official website or get it in hard copy from any branch of SBI
- Fill the form with neat handwriting and ensure that all information provided is true and accurate
- Although, it is not mandatory to have an Aadhar number for subscribing to Atal Pension Yojana, still it is better if you can attach your Aadhar card copy with the form.
- While you fill up the form, you would be required to choose the pension amount you wish to get after 60 years of age. Once you have decided on the amount of pension, you would come to know what premium you would have to contribute every year.
- There would be a section in the form which would ask you for your saving account number. If you do not have a saving account number, you can get it opened in the same branch in normal condition or under Jan Dhan Yojana.
- Based on the pension amount that you opt for, you premium every month would be deducted from your saving account automatically. This, you would have to consent in the form that you fill for the scheme.
- Once you have filled all of these, you can enquire the executive at the bank if they need any additional document with the form and they would help you complete the formalities.
Rules of Atal Pension Yojana Scheme
Concerns regarding financial security and income of citizens in their old age resulted in the Government of India launching various schemes and pensions that would benefit everyone. One of the popular options available is in SBI website. This pension scheme was started with the intention of providing a secure future for low income workers and those in the unorganized sector primarily, however all Indian citizens can subscribe to this pension scheme. According to the NSSO survey conducted during 2011-12, individuals in these sectors constitute 88% of the total force and therefore implementation of a regulated pension scheme is highly important.
Now a days teenagers are earning more amount when compared to previous days to provide financial security during old age is not given priority. The way most people spend their hard earned income has undergone a change. Pension schemes are one of the best options to maintain a steady income after the age of 60.
The Atal Pension Yojana is directed through the NPS architecture by the Pension Fund Regulatory and Development Authority (PFRDA). The main aim of the team is to provide fixed amount to the participants every month.