Atal Pension Yojana, the government backed minimum guaranteed pension plan for those in the unorganized sector has outperformed all other pension plans currently being offered in the country. Of the different schemes, in which the corpus of subscribers is put has yielded 11% return say for instance SBI Pension Fund has generated 11.24%, UTI Retirement Solutions yielded 11.01% and LIC Pension Fund offered 10.94%. The returns we are taking here are of the last one year.
And because of the higher return, subscriber who has been guaranteed a minimum pay-out in the range of Rs. 1000- Rs. 5000 depending on his contribution at the retirement age, will be given additional benefits. This is because their (subscribers' ) contribution earned more than the estimated return for the minimum guaranteed pension.
PFRDA's Take On Higher Returns From Scheme
"If the actual returns on the pension contributions are higher than the assumed returns for minimum guaranteed pension, over the period of contribution, such excess shall be credited to the subscriber's account, resulting in enhanced scheme benefits to the subscribers," says PFRDA.
And in a case if the returns fall short of the assured or assumed rate of return then the shortfall shall be funded by the centre.
The scheme started in 2015 has a total of more than 2 crore subscribers under its ambit.
For applying to the scheme, one need to be in the age bracket of 18-40 years and here the pension is guaranteed for lifetime. Also, the auto-debit facility from savings account which was stalled due to the pandemic has again resumed, but any previous installment for the period between April and August 2020 can be cleared until September without paying any penalty.