Atal Pension Yojana (APY)


The Scheme Atal Pension Yojana (APY) was launched on 9th May 2015 by Prime Minister Narendra Modi.

Atal Pension Yojana is the guaranteed pension scheme of the government of India administered by PFRDA (Pension Fund Regulatory and Development Authority).

Contents in the Article:

  • Introduction of APY
  • Objectives of the Scheme
  • Significances od APY
  • Funding of APY (Aal Pension Yojana)
  • A video from the Government site

This Article is very important in itself as it is a Central Government Scheme. It is also very important for various exams like UPSC, PSC, UPPSC, BPSC, and others.

Objectives of scheme:
  • APY is open to all saving bank/post office saving bank account holders in the age group of 18 to 40 years who are not members of any statutory social security scheme.
  • The contribution of APY differs as the pension amount is chosen.
  • The subscribers would receive the guaranteed minimum monthly pension of RS. 1,000 to rs 5000 at the age of 60 years on the basis of their contribution.
  • The same amount of pension would be paid to the spouse of the subscriber after the demise of the subscriber and on the demise of both subscriber and spouse, the pension accumulated till the age of 60 of the subscriber would be returned back to the nominee.
Significances of the Scheme APY:

The minimum pension would be guaranteed by the government, i.e. if the accumulated corpus based on contribution earns a lower than estimated return on investment and if inadequate to provide the minimum guaranteed pension, the Central Government would fund such inadequacy.

  • According to this plan, if the returns on investment are higher, the subscriber would get enhanced pensionary benefits.
  • In the event of pre-mature death of subscriber, there is an option to continue contributing APY amount of the subscriber for the remaining vesting period, till the attaining age 60 of the original subscriber.
  • The spouse of the subscriber would be entitled to receive the same amount of pension as of subscriber after the death.
  • In the case of the death of both spouse and subscriber, the nominee would be entitled to receive the wealth.
  • The Scheme is mainly targeted at unorganized sector workers.
Funding of APY:
  • The Government would provide a fixed pension guarantee for the subscriber;
  • The gov. would co-contribute 50% of the subscriber contribution or Rs.1000 per annum, whichever fulfills the eligibility of subscribers; and
  • The gov. would also reimburse the promotional and developmental activities including incentives to the contribution collection agencies to encourage people to join APY.


Source: PIB


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