The Pension Fund Regulatory and Development Authority (PFRDA), the pension regulator of India under the Ministry of Finance has submitted its proposal to increase the pension and age limit on APY to the government, which is looking into it.
Nirmala Sitharaman, the Minister of Finance and Corporate Affairs, in a written response to the Parliament, said that the proposal under the Atal Pension Yojana (APY) is being examined by the government.
The government backed pension scheme for the unorganised sector is based on defined benefit to provide guaranteed minimum monthly pension of Rs 1,000-5,000 at the age of 60 years.
Those in the unorganised sector aged between 18 to 40 years can join the scheme to plan their retirement pension. They will get a guaranteed pension amount between Rs 1,000 and Rs 5,000 depending on the customer contribution which starts at as low as Rs 42 per month.
The pension scheme also covers spouse in case of the subscriber's death and the nominee will get the accumulated pension wealth up to Rs 8.5 lakh in an event where both the subscriber and his/her spouse dies.