ATAL PENSION YOJANA (APY) (Syllabus: GS Paper 2 – Govt Schemes)

Context: The Finance Minister of India recently stated that the Atal Pension Yojana is built on the best practice choice architecture, ensuring automatic continuation of premium payments unless the subscriber opts out.

Atal Pension Yojana (APY)

• Launched: 2015
• Nodal Ministry: Ministry of Finance
• Administered By: Pension Fund Regulatory and Development Authority.
• Eligibility: Any Indian citizen in the age group of 18-40 years having savings bank account/ post office savings bank account.
• Aim: To provide social security for the people working in an unorganised sector as people working in such sectors mainly belong to a low-income group.
• Coverage: The Scheme has been implemented comprehensively across the country covering all states and Union Territories.
• Guaranteed Pension: 1000 to 5000 per month from the age of 60 years.
• Benefits of APY

oFixed Pension Assurance: Subscribers aged between 18 and 40 can secure a fixed pension ranging from Rs. 1000 to Rs. 5000 by joining and contributing to APY.

oVariable Contribution Levels: Contribution levels adjust according to the age of the subscriber, starting low for early joiners and increasing for late joiners.

oSpousal Pension Continuity: The same pension is guaranteed to the spouse in the event of the subscriber's death, ensuring financial stability for the family.