Atal Pension Yojana: APY Scheme Benefits Extended; How To Be Eligible For Rs 3000, Rs 4000, Rs 5000 Pensions

In major good news for pensioners, the Prime Minister Narendra Modi-led Cabinet has approved the continuation of the decade-old popular scheme, Atal Pension Yojana (APY). The scheme is now extended till 2030-31 to support promotional and developmental activities and gap funding. This comes as a major relief to about 8.66 crore subscribers who have enrolled for APY accounts.

Launched on May 9, 2015, APY is focused on offering old-age income security to workers in the unorganized sector. Subscribers under APY can receive a guaranteed minimum pension of Rs 1,000 per month, Rs 2,000 per month, Rs 3,000 per month, Rs 4,000 per month or Rs 5,000 per month after attaining 60 years of age till death.

Atal Pension Yojana Eligibility:

This scheme is available for all Indian citizens who have a savings bank account. But the minimum age of becoming a APY accountholder is 18 years and maximum up to 40 Years.

The age of exit and start of pension is 60 years.

Atal Pension Yojana Contribution:

Rs 1,000 Pension Per Month:

To receive this pension amount, the contributions vary from Rs 42 monthly, Rs 125 quarterly and Rs 248 half-yearly.

Rs 2,000 Pension Per Month:

To ensure receiving Rs 2,000 pensions after 60 years, the monthly contribution is Rs 84, while the quarterly and half-yearly contributions are Rs 250 and Rs 496 respectively.

Rs 3,000 Pension Per Month:

For this pension amount, subscribers will be required to contribute Rs 126 per month, Rs 376 on quarterly basis, and Rs 744 on half-yearly basis.

Rs 4,000 Pension Per Month:

For Rs 4,000 pension per month, subscribers should contribute up to Rs 168 per month, Rs 501 on quarterly basis and Rs 991 half-yearly basis.

Rs 5,000 Pension Per Month:

The highest pension amount offered under APY is Rs 5,000 per month. And to achieve this, subscribers should contribute as minimum as Rs 210 per month, Rs 626 quarterly, and Rs 1,239 on half-yearly basis.

As per the guidelines, the subscribers should contribute the prescribed contribution amount from the age of joining APY till the age of 60 years.

Atal Pension Yojana Calculation:

For instance, if you are 18 years old and have decided to join APY scheme, your vesting period will be 42 years. If you decide to begin monthly contribution of Rs 42, your total investment will be around Rs 21,168 for next 42 years. APY will return corpus amount up to Rs 1.7 lakh to the accountholder or nominee.

Contribution Amount: Rs 42 Per Month

Vesting Period: 42 Years which is 504 months in total.

Total Contributions: Rs 21,168 ( Rs 42 per month x 504 months)

Corpus Amount: Rs 1.7 Lakh

Similarly, if you are opting for Rs 5,000 pension per month and decide to start APY scheme at the age of 18 years, here's how much you have contributed:

Contribution Amount: Rs 210 Per Month

Vesting Period: 42 years i.e. 504 months.

Total Contributions: Rs 1,05,840 (Rs 210 per month X 504 months)

Corpus Amount: As per the FAQs, up to Rs 8.5 lakh is the return of corpus amount to accountholder and nominee.

Atal Pension Yojana: Exit, Withdrawal & Pension Payment

According to the FAQs, on completion of 60 years, the subscriber will get the guaranteed minimum monthly pension, or higher monthly pension, depending on the investment returns.

However, in special cases such as in the event of the death of beneficiary or specified illnesses, as mentioned in the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, before the age of 60 years, the accumulated pension wealth till date will be given to the nominee of the subscriber.

But in case if the subscriber is opting for voluntarily exit APY before the age 60, he or she shall only be refunded the contributions made by him or her to APY, along with the net actual interest earned on his contributions (after deducting the account maintenance charges). However, the Government co-contribution, and the interest earned on the Government co-contribution will not be returned to the subscribers.