ATAL PENSION YOJANA (APY)

Introduction

Hon’ble Prime Minister of India launched the Atal Pension Yojana (APY) on May 9, 2015,
along with 2 other insurance schemes – Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
and Pradhan Mantri Suraksha Bima Yojana (PMSBY).

APY is focused on encouraging and enabling the working poor to enable them to join the
National Pension System (NPS).

APY is a scheme administered by Pension Fund Regulatory and Development Authority

(PFRDA) and all banks are authorized to collect the applications under this scheme.

Savings Bank account holders in the age group of 18 to 40 are eligible to join the Scheme.
Government also makes a minimum contribution towards the fund for selected category of
subscribers.

Eligibility Criteria

I. Applicable to all citizens of India, especially those in the unorganized sectors aged
between 18-40 years.
II. He / She should have a savings bank account/ open a savings bank account.
III. The prospective applicant should be in possession of mobile number and its details are
to be furnished to the bank during registration.

Benefits of the scheme

I. Guaranteed minimum monthly pension ranging from Rs. 1000 to Rs. 5000 to the
subscriber from the age of 60.
II. In case of death of subscriber, the pension would be available to the spouse and on the
death of both of them (subscriber and spouse), the pension corpus would be returned
to his nominee.

Contribution Chart

The age wise contribution chart is detailed below.

Age of entry Years of Monthly Monthly Monthly Monthly Monthly
contribution pension of pension of pension of pension of pension of
Rs.1000 Rs.2000 Rs.3000 Rs.4000 Rs.5000
18 42 42 84 126 168 210
19 41 46 92 138 183 228
20 40 50 100 150 198 248
21 39 54 108 162 215 269
22 38 59 117 177 234 292
23 37 64 127 192 254 318
24 36 70 139 208 277 346
25 35 76 151 226 301 376
26 34 82 164 246 327 409
 27 33 90 178 268 356 446
28 32 97 194 292 388 485
29 31 106 212 318 423 529
30 30 116 231 347 462 577
31 29 126 252 379 504 630
32 28 138 276 414 551 689
33 27 151 302 453 602 752
34 26 165 330 495 659 824
35 25 181 362 543 722 902
36 24 198 396 594 792 990
37 23 218 436 654 870 1,087
38 22 240 480 720 957 1,196
39 21 264 528 792 1,054 1,318
40 20 291 582 873 1,164 1,454

Logic to read the table: A customer aged 18 at the time of entry into the scheme has to pay an
amount of Rs. 42 for obtaining a monthly pension of Rs. 1000 and a customer aged 40 years has
to pay an amount of Rs.291 per month for obtaining a monthly pension of Rs.1000 from the age
of 60 years.

Existing Swavalamban beneficiaries:

 The existing Swavalamban subscriber, if eligible, may be automatically migrated to APY

with an option to opt out. However, the benefit of five years of Government Co-
contribution under APY would be available only to the extent availed by the
Swavalamban subscriber already. This would imply that if, as a Swavalamban
beneficiary, he has received the benefit of government Co-Contribution of 1 year, then
the Government co-contribution under APY would be available only for 4 years and so
on.
 Existing Swavalamban beneficiaries opting out from the proposed APY will be given
Government co-contribution till 2016-17, if eligible, and the NPS Swavalamban
continued till such people attain the age of exit under that scheme.

Individual Subscribers will not be having any option for choice of investment or select Pension
Funds.

Auto debit of contribution amount:

 The contribution amount will be debited from the account of the subscriber by auto-
debit.
 Subscribers should keep the required balance in their savings bank accounts on the
stipulated due dates to avoid any late payment penalty. Due dates for monthly
contribution payment is arrived based on the deposit of first contribution amount.
 In case of repeated defaults for specified period, the account is liable for foreclosure
and the GoI contributions, if any shall be forfeited.
 Also, any false declaration about his/her eligibility for benefits under this scheme for
whatsoever reason, the entire government contribution shall be forfeited along with the
penal interest.
Issuance of Physical PRAN Card:

APY subscriber can request for physical PRAN card through NSDL website – www.enps.nsdl.com
by paying a nominal charge (Rs. 53/-). After accessing the website, the subscriber has to select
the HomeAtal Pension Yojana (APY)Print APY PRAN Card.

Upgrade or Downgrade of Pension amount:

Pension Fund Regulatory and Development Authority (PFRDA) has permitted the APY
subscribers to upgrade or downgrade his/her pension amount during the month of April every
year i.e. subscriber can change the minimum guaranteed amount of pension opted by him/her.
In such cases, the contribution that the subscriber would pay under APY will be changed based
on the new Pension Amount opted by them.

Mobile App for APY:

National Securities Depository Ltd (NSDL), the Central Recordkeeping Agency for Atal Pension
Yojana under the guidance of Pension Fund Regulatory Development Authority (PFRDA) has
launched a Mobile Application for the convenience of APY subscribers. The mobile app is
available on ‘Google Play Store’ as ‘NPS Lite by NSDL e-Gov’ for installation and use. This app
allows you to get your account information on the move.

The key features available in the mobile app which can be used by the subscribers are listed
below;
1. View current holdings under APY: The mobile app allows the subscriber to view his/her APY
account details including scheme wise unit holding along with latest NAV and portfolio value.

2. View Account details under APY: Through the app the subscribers can view their account
details like name & address, mobile No., PRAN, NLOO* registration No., NLOO name,
contribution frequency, pension amount, contribution amount etc. [*here NLOO (NPS-Lite
Oversight Office) is Bank]

3. View last 5 contribution transactions under APY: Subscribers can get information about last
5 contributions made in their account. This will help them to track the balance in their APY
account.

4. Download Transaction Statement under APY: The app enables the subscribers to download
their APY transaction statement in financial year wise.

5. Generate E-PRAN: Through the app the subscribers can view as well as download the e-
PRAN.

Penalty for default:

Additional payment for delayed payments will be collected from the account of the customer
along with the next contribution amount:

 Rs.1 per month for contribution upto Rs. 100 per month.
 Rs.2 per month for contribution upto Rs.101 to Rs. 500/- per month.
 Rs.5 per month for contribution between Rs.501/- to 1000/- per month.
 Rs.10 per month for contribution beyond Rs.1001/- per month.
The fixed amount of interest/penalty will remain as part of the pension corpus of the
subscriber.

Discontinuation of payment contribution:

Discontinuation of payments of contribution amount shall lead to following:

o After 6 months account will be frozen.
o After 12 months account will be deactivated.
o After 24 months account will be closed.
Subscriber should ensure that the Bank account to be funded enough for auto debit of
contribution amount.

Exit from scheme:

1. Exit in case of death of the Subscriber:

In case, the Subscriber dies before the age of 60 years, there are two options:

a) Closure of APY account - In case, spouse wishes to exit from the scheme and close
the account, the corpus will be settled in the name of spouse. If spouse is not
present (where Subscriber is not married, divorced, legally separated or spouse has
expired), then the corpus will be settled in the name of the nominee.

b) Continuation of APY account (only for Spouse) - The spouse would have an option
to continue contributing to APY accounts 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 that of the Subscriber until the
death of the spouse.

2. Premature Exit before the age of 60 years:

In case of exit before 60 years, there are two options:

a) Exit due to specified illness - Exit before 60 years of age may be permitted only in
exceptional circumstances such as due to specified illness of the Subscriber and the
accumulated corpus (Subscriber contribution, Government Contribution and the
returns thereon) in the Subscriber's account will be returned to the Subscriber.

b) Voluntary exit - In case a Subscriber chooses to voluntarily exit from APY before
attaining 60 years of age, he/she will be refunded only the contributions made by
him/her to APY along with the returns thereon after deducting the account
maintenance, investment management etc. charges. The Government co-
contribution, if any and the accrued income earned on the Government co-
contribution will not be given to such Subscribers.
Age of Joining, Contribution Levels, Fixed Monthly Pension and Return of Corpus to the
nominee of subscribers

Age of Years of Indicative Monthly Monthly Pension to Indicative Return

joining contribution Contribution (in Rs.) the subscribers and of Corpus to the
his spouse (in Rs.) nominees of the
subscribers (in Rs.)
18 42 42 1,000 1.7 Lakh
20 40 50 1,000 1.7 Lakh
25 35 76 1,000 1.7 Lakh
30 30 116 1,000 1.7 Lakh
35 25 181 1,000 1.7 Lakh
40 20 291 1,000 1.7 Lakh
18 42 84 2,000 3.4 Lakh
20 40 100 2,000 3.4 Lakh
25 35 151 2,000 3.4 Lakh
30 30 231 2,000 3.4 Lakh
35 25 362 2,000 3.4 Lakh
40 20 582 2,000 3.4 Lakh
18 42 126 3,000 5.1 Lakh
20 40 150 3,000 5.1 Lakh
25 35 226 3,000 5.1 Lakh
30 30 347 3,000 5.1 Lakh
35 25 543 3,000 5.1 Lakh
40 20 873 3,000 5.1 Lakh
18 42 168 4,000 6.8 Lakh
20 40 198 4,000 6.8 Lakh
25 35 301 4,000 6.8 Lakh
30 30 462 4,000 6.8 Lakh
35 25 722 4,000 6.8 Lakh
40 20 1164 4,000 6.8 Lakh
18 42 210 5,000 8.5 Lakh
20 40 248 5,000 8.5 Lakh
25 35 376 5,000 8.5 Lakh
30 30 577 5,000 8.5 Lakh
35 25 902 5,000 8.5 Lakh
40 20 1,454 5,000 8.5 Lakh

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