The Government of India is extremely concerned about the old age income security of the working poor and is focused on encouraging and enabling them to join the National Pension System (NPS). 

The Government announced the introduction of universal social security schemes in the Insurance and Pension sectors for all Indians, specially the poor and the under-privileged, in the Budget for the year 2015-16. Therefore, Government has launched the Atal Pension Yojana (APY), which will provide a defined pension, depending on the contribution, and its period. The APY will be focussed on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA). 

Benefit of APY 

Fixed pension for the subscribers ranging between Rs. 1000 to Rs. 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 increase if he joins late. 

Eligibility for APY 

• Atal Pension Yojana (APY) is open to all bank account holders. The Central Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, i.e., from Financial Year 2015-16 to 2019-20, who join the NPS between the period 1st June, 2015 and 31st March, 2016 and who are not members of any statutory social security scheme and who are not income tax payers. However the scheme will continue after this date but Government Co-contribution will not be available. 
• The Government co-contribution is payable to eligible PRANs by PFRDA after receiving the confirmation from Central Record Keeping Agency at such periodicity as may be decided by PFRDA. 

Age of joining and contribution period 

The minimum age of joining APY is 18 years and maximum age is 40 years. The age of exit and start of pension would be 60 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more. 

Focus of APY 

Mainly targeted at unorganised sector workers. 

Contribution Chart 

Funding of APY 

Government would provide 

• 1. fixed pension guarantee for the subscribers; 
  2. would co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, to eligible subscribers; and 
  3. would also reimburse the promotional and development activities including incentive to the contribution collection agencies to encourage people to join the APY. 

Exit and pension payment 

• Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed monthly pension. 
• Exit before 60 years of age is not permitted, however, it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease. 
• If the APY account is closed due to terminal illness or death of the subscriber, the accumulated corpus (subscriber contribution, Government co-contribution and the returns thereon) in the subscriber account will be returned to the subscriber or the nominee as the case may be. 
• In case a subscriber, who has availed of Government co-contribution under APY, chooses to voluntarily exit APY before attaining the age of 60 years, he/ she shall be refunded the contributions made by him/her to APY along with the net accrued income earned on his/her contributions after deducting the account maintenance, investment management, etc. charges. The Government co-contribution and the accrued income earned on the Government co-contribution shall not be given to such subscribers. Funds redeemed will be transferred to the subscriber’s Bank account registered in APY. Following steps would be allowed for Voluntary Closure of APY accounts: 

1. Subscriber will submit the Account Closure request in the specified format to the concerned branch including the reason for closure. 
2. Branch shall verify the Form and signature of the subscriber. On acceptance of request, branch shall provide an acknowledgement to the subscriber. 
3. Branch has to send the request for closure to circle office. Circle offices to send the request to Marketing Department, Head Office for further processing of closure request. Branches are advised not to send the requests directly to Head office.