The government of India has been extremely concerned about the security of old age income for the working class of poor sectors. Therefore, they are encouraged and focused to tilt the people of the lower sectors towards National Pension System (NPS). This fixed pension idea for the subscribers of the scheme will range between 1000 Rs. To 5000 Rs. If they join and contribute in the scheme between an ag limitation range of 18 years to 40 years.
Role of Government in APY: The government has facilitated the individuals with the ease of enrolment and subscriber payment too. All the individuals with bank accounts would be eligible to join APY with auto debit facility from their respective bank accounts. This would further lead to a reduction of contribution charges too.
The government, in order to support the idea of this scheme and provide support to the individuals, has decided to fund the contribution of the subscribers. They would co-contribute about 50% of the subscriber’s contributions or 1000 Rs. Per annum, whichever would be less.
Facts to know about APY: Though Atal Pension Yojana (APY) is very easy to understand, there are certain doubts that can occur in individuals head. So, various important points related to Atal Pension Yojana (APY) are listed below,
- The Government launched the Atal Pension Yojana (APY) on 1st June 2015.
- Atal Pension Yojana (APY) was designed to accommodate a fixed pension (depending on the contribution, and its period) for the person enrolled.
- The Atal Pension Yojana (APY) has kept its focus on all residents in the unorganized sector, who join the National Pension System (NPS) regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
- The minimum age for registering under APY is 18 years and maximum age is 40 years. Consequently, the minimum period of participation by any subscriber under APY would be 20 years or longer. The advantages of fixed minimum pension would be guaranteed by the Government.
- The scheme would be only for those who are not members of any other statutory social security scheme. Moreover, the amount of contribution would vary and would be low for early ones and would be high for the ones who join the scheme at a later age.
- An individual who is in the age group of 18 years to 39 years 364 days can only register for Atal Pension Yojana.
- Under the APY, the enrolled subscribers would obtain a fixed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years (depending on their contributions, which itself would be based on the age of joining the APY.)
- It is not compulsory to give Aadhaar number for starting an APY account. It is, despite, desirable to give Aadhaar Number for individual identification of the subscriber.
- The savings bank account or a post office savings bank account is necessary for seeking APY accounts.
- The contributions can be given at monthly / periodically / half yearly periods by the auto debit facility from savings bank account or post office savings bank account of the subscriber.
A dedicated scheme for an unorganized sector in India would surely help them sustain a better living and livelihood at their old age. This would further help him grow and live a secure life for themselves and their families. This effort my government is surely appreciable.