Atal Pension Yojana for Unorganised Sector Workers!

Dear readers,

Recently, Prime Minister Narendra Modi
launched three major social security schemes in Kolkata. The schemes are the
Pradhan Mantri Suraksha Bima Yojana, the Pradhan Mantri Jeevan Jyoti Bima
and the Atal Pension Yojana.

The Pradhan Mantri Suraksha Bima Yojana
provides accident and disability cover, the Pradhan Mantri Jeevan Jyoti Bima
Yojana is a life insurance plan and the Atal Pension Yojana is a formal pension scheme. The three
schemes will come into effect from June 1, 2015 and would benefit people when they are
60 years old.

In this article we provide you information
about Atal Pension Yojana, which will help you in your studies as well as in
your upcoming exams.

Atal Pension Yojana (APY) is a scheme mainly for
workers in unorganised sector, which will encourage the habit of saving for
their retirement. The scheme will be administered by the Pension Fund Regulatory
and Development Authority (PFRDA) and replace the previous government’s Swavalamban Yojana NPS Lite.

Background: According to the 66th round of
National Sample Survey Organisation (NSSO) survey of 2011/12, workers in
unorganised sector constitute 88% of the total labour force of 47.29 crore in India.
These workers do not have any provision to the formal pension. To voluntary
save for their retirement, previous government had started the Swavalamban
Scheme in 2010-11. However, coverage under Swavalamban Scheme is insufficient
mainly due to lack of clarity of pension benefits at the age after 60.

Major Points
of the scheme:

1. The subscribers who will joined the scheme
would receive the fixed pension of Rs. 1000 per month, Rs. 2000 per
month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age
of 60 years, depending on their contributions.

2. The minimum age of joining this scheme is
18 years and maximum age is 40 years.

3. Under the scheme, a subscriber can contribute
for minimum period of 20 years or more and pension payment will start at the
age of 60 years.

4. Under the scheme government of India has
decided to 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 31st December,
2015 and who are not income tax payers.

5. All bank
account holders under the eligible category may join the scheme with auto-debit
facility to accounts, leading to reduction in contribution collection charges.

6. Subscribers who will join the scheme before
December 31, 2015, can availed the benefit of government’s co-contribution
under the scheme.

7. Subscribers who are already enrolled in
Swavalamban Scheme would be automatically migrated to Atal Pension Yojana,
unless they opt out.

Happy reading!