Key Highlights
Aim: Social security coverage for persons in the unorganised sector.
Unorganised sector constitutes 88% of population of Indian workers totaling 47.29 crore: 66th Round of NSSO Survey 2011-2012. This Scheme shows that Government is concerned about old age income security of working poor. Focus is on encouraging and enabling them to be included in NPS/National Pension Scheme
• Swavalamban scheme inadequate due to lack of clearness about pension benefits following 60 years of age.
Key Features
• Finance Minister announced Atal Pension Yojana in Budget Speech for 2015-2016
• Yojana will be focused for workers in the unorganised sector.
• Swavalamban scheme inadequate due to lack of clearness about pension benefits following 60 years of age.
Key Features• Finance Minister announced Atal Pension Yojana in Budget Speech for 2015-2016
• Yojana will be focused for workers in the unorganised sector.
- Scheme will be launched from June 1st, 2015
• It will be administered by the PFRDA (Pension Fund Regulatory and Development Authority).
• Open to those who lack membership of statutory social schemes.
• Under the Yojana, subscribers will get fixed pension of INR 1000/2000/3000/4000/5000 per month depending upon contributions at the age of 60 years.
• Contributions will vary depending upon the age of joining this scheme.
• Minimum age to join this 18 years; maximum is 40.
• Minimum contribution period under a subscriber will be 20 years or more.
• Centre will co-contribute 50% of the contribution of subscribers or INR 1000 (depending upon which sum is lower) for a duration of 5 years (2015-2016 to 2019-2020) who had joined NPS prior to 31st December 2015.
• Subscribers should also not be income tax payers.
• Unless opting out, existing subscribers of Swavalamban scheme will automatically migrate to APY
• Contribution levels will vary depending upon how early/late subscribers join
• This Yojana is open to all bank account holders that are not members of any statutory social scheme
• Through the means of the National Pension Scheme, Points of Presence (Service Providers) and Aggregators under the Swavalamban Scheme will enroll subscribers.
• Open to those who lack membership of statutory social schemes.
• Under the Yojana, subscribers will get fixed pension of INR 1000/2000/3000/4000/5000 per month depending upon contributions at the age of 60 years.
• Contributions will vary depending upon the age of joining this scheme.
• Minimum age to join this 18 years; maximum is 40.
• Minimum contribution period under a subscriber will be 20 years or more.
• Centre will co-contribute 50% of the contribution of subscribers or INR 1000 (depending upon which sum is lower) for a duration of 5 years (2015-2016 to 2019-2020) who had joined NPS prior to 31st December 2015.
• Subscribers should also not be income tax payers.
• Unless opting out, existing subscribers of Swavalamban scheme will automatically migrate to APY
• Contribution levels will vary depending upon how early/late subscribers join
• This Yojana is open to all bank account holders that are not members of any statutory social scheme
• Through the means of the National Pension Scheme, Points of Presence (Service Providers) and Aggregators under the Swavalamban Scheme will enroll subscribers.
Funding
• Government will offer fixed pension guarantee for subscribers.
• It will contribute half of the subscriber contribution or INR 1000 per annum whichever is lower to subscribers who are eligible.
• The government will also reimburse the promotional cum developmental activities; this includes incentives.
Highlights
• The contribution levels and fixed monthly pension to subscribers will be based on age of joining.
• Those joining at 18 years will have to give a monthly amount between INR 42 and 210 to get a fixed monthly pension between INR 1000 to 5000 per month
• Those joining at 40 years will have to contribute between INR 291 and 1454 to get monthly contributions of the same amounts.
Source: PIB,The Hindu