SSL1 – ATAL PENSION YOJANA (APY)

1. Background :

The Government of India has introduced a pension scheme called the Atal Pension Yojana
(APY), with effect from 1st June, 2015, pursuant to the announcement in the budget for
2015-16 on creating a universal social security system for all Indians, especially the poor,
the under-privileged and the workers in the unorganised sector. APY is being administered
by the Pension Fund Regulatory and Development Authority (PFRDA) under the overall
administrative and institutional architecture of the National Pension System (NPS).

2. Eligibility for joining APY :

APY is open to all citizens of India who have a savings bank account. The minimum age of
joining APY is 18 years and maximum age is 40 years.

3. Features of APY :

APY is a voluntary, periodic contribution based pension system, under which the subscriber
would receive the following benefits:

(i) Central Government guaranteed minimum pension amount : Each subscriber under
APY shall receive a Central Government guaranteed minimum pension of Rs. 1000 per
month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000
per month, after the age of 60 years until death.

(ii) Central Government guaranteed minimum pension amount to the spouse: After the
subscriber’s demise, the spouse of the subscriber shall be entitled to receive the same
pension amount as that of the subscriber until the death of the spouse.

(iii) Option to the spouse of the subscriber to continue contribution to APY on death of
subscriber before the age of 60 years: If the subscriber dies before the age of 60
years, his / her spouse would be given an option to continue contributing to APY
account of the subscriber, which can be maintained in the spouse’s name, for the
remaining vesting period, till the original subscriber would have attained the age of 60
years. The spouse of the subscriber shall be entitled to receive the same pension
amount as that of the subscriber until the death of the spouse.

(iv) Return of the pension wealth to the nominee of the subscriber : After the demise of
both the subscriber and the spouse, the nominee of the subscriber shall be entitled to
receive the pension wealth, as accumulated till age 60 of the subscriber. If the APY
account is closed due to terminal illness or death of the subscriber, the accumulated
corpus (Subscriber contribution, Government co-contribution and the returns thereon)
in the subscriber account will be returned to the subscriber or the nominee as the case
may be.

4. Contribution payment by subscribers :

The subscriber’s contributions to APY shall be made through the facility of ‘auto-debit’ of
the prescribed contribution amount from the savings bank account of the subscriber in
monthly, quarterly or half-yearly frequency. The subscribers are required to contribute the
prescribed contribution amount from the age of joining APY till age 60. The details of age-
wise, pension-wise and contribution-frequency-wise prescribed contribution amount and the
indicative pension wealth available for the nominee is given in the table at Annex – 1.

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5. Eligibility for co-contribution by Central Government :

The subscribers in the eligible age, who are not income-tax payers and who are not covered
under any statutory social security scheme, are entitled to receive:
(i) The co-contribution by Central Government of 50% of the total prescribed contribution,
up to Rs.1000 per annum, will be available for those eligible subscribers who join APY
before 31st December, 2015.
(ii) The Central Government co-contribution shall be available for a period of 5 years, i.e.,
from Financial Year 2015-16 to 2019-20.
6. Additional voluntary co-contribution by State Governments :

State Governments are enabled to provide additional voluntary co-contribution to APY

subscribers of their State. The procedure would be prescribed by PFRDA, in consultation
with the Central Government.
7. Process for enrolment under APY :

All citizens of India in the age group of 18-40 years can enroll themselves under APY by
submitting the duly completed application form to any enrolment agency.

8. Enrolment agencies under APY :

APY applications may be submitted to any of the following enrolment agencies:

a. All banks, including all nationalised banks, private banks, banking companies,
regional rural banks, cooperative banks etc. either directly or through the following
enablers:

b. All Points of Presence (Service Providers) and Aggregators, which are governed under
the institutional architecture of NPS and are appointed as such by PFRDA could work
as facilitators with banks.

c. Those Business Correspondents (BCs) / existing non-banking aggregators, Micro

Finance Institutions (MFIs) etc. who are appointed as enablers by banks.

d. Other enrolment agencies that may be specified as such by PFRDA or the Central
Government, such as, Department of Posts under CBS Platform.
9. Charges and fees and overdue interest under APY:

The charges and fees and the overdue interest for non-payment or delayed payment of
prescribed contribution amount shall be levied on the subscribers of APY. These charges and
their method of application shall be prescribed by PFRDA from time to time, in consultation
with the Central Government.
10. Reimbursement of promotional expenditure and Incentive for enrolment of
subscribers and sharing of incentives :

The Central Government shall reimburse the expenditure done on promotional and
development activities by the contribution collection agencies to encourage people to join
APY in a manner as prescribed by the Central Government. Banks and other enrolment
agencies shall also be paid incentives for enrolments under APY, which may shared by them
with the BCs/MFIs/Non-Bank Aggregators in a ratio. The incentives payable to the banks and
other enrolment agencies and the ratio of sharing of these incentives shall be prescribed by
PFRDA from time to time in consultation with the Central Government.

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11. Existing subscribers of Swavalamban Scheme :

The existing subscribers of Swavalamban in the age group of 18-40 years shall be migrated
to APY unless they exercise an option to opt-out. The remaining subscribers outside this
age group would be governed by the Pension Fund Regulatory and Development Authority
(Exits and Withdrawals under the National Pension System) Regulations, 2015.
12. Investment of the contributions under APY :

The amount collected under APY shall be invested as per the investment pattern specified
by the Central Government from time to time.
13. Exit, withdrawal and pension payment :

On completion of 60 years, the subscriber will get the guaranteed minimum monthly
pension, or higher monthly pension, depending on the investment returns. In exceptional
circumstances, i.e., in the event of the death of beneficiary or specified illnesses, as
mentioned in the Pension Fund Regulatory and Development Authority (Exits and
Withdrawals under the National Pension System) Regulations, 2015, before the age of 60
years, the accumulated pension wealth till date would be given to the nominee or the
subscriber, as the case may be. In case a subscriber, who has availed Government co-
contribution under APY, chooses to voluntarily exit APY before the age 60, he shall only be
refunded the contributions made by him to APY, along with the net actual interest earned
on his contributions (after deducting the account maintenance charges), whereas, the
Government co-contribution, and the interest earned on the Government co-contribution,
shall not be returned to such subscribers.

14. Furnishing of Name of Spouse & Nominee:

While enrolling to the scheme, the subscribers are required to provide the name of the
spouse and name of the nominee. The unmarried subscribers are required to furnish the
spouse details after marriage. The name of the nominee should preferably be a person other
than spouse to avail third benefits described as per the scheme which is the return of
pension corpus after the death of the subscriber and the spouse. The nominee is designated
as the beneficiary of the recipient of indicative pension corpus amount, i.e. Rs.1.70 lakh-
Rs.8.50 lakh as the case may be.

15. Mobile APP for APY accounts:

PFRDA has enabled mobile application to view the Statement of Account and other details
of APY account. All APY subscribers who were having a smart phone can download the NPS
Lite Mobile Application from Google Play store and install in their mobile phones for real
time viewing of APY accounts. Subscribers can login to the mobile app using their PRAN
number as USER ID and they will receive an OTP on their registered mobile number for
authentication. It enables the subscriber to view their account details, download
transaction statement and can also view last five contributions made in their account.

16. Income tax benefits:

The contribution towards Atal Pension Yojana(APY) is now eligible for Income Tax
Exemption under Section 80CCD of Income Tax Act ,1961(43 of 1961).

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 Annex – 1

Monthly, Quarterly and Half-yearly prescribed contributions under APY for different minimum guaranteed amount of
pension at different entry age and the return of corpus amount to the nominee

Minimum Guaranteed
Pension of Rs. Minimum Guaranteed Minimum Guaranteed Minimum Guaranteed Minimum Guaranteed
1000/mon Pension of Rs. Pension of Pension of Pension of
th 2000/month Rs.3000/month Rs.4000/month Rs.5000/month
Return of
Corpus
Amount
to the
Rs. 1.7 Rs. 3.4 Rs. 5.1 Rs. 6.8 Rs. 8.5
Nominee Lakh Lakh Lakh Lakh Lakh
Half Half Half Half Half
Vestin Month Quarterl Monthl Quarterl Monthl Quarterl Monthl Quarterl Monthl Quarterl
Age g l y yearly y y yearly y y yearly y y yearly y y yearly
y contri contri contri contri
at perio contri- contri- - contri- contri - contri- - contri- - contri-
butio butio butio butio
entry d bution bution contri- n bution - n bution contri- n bution contri- n bution contri-
butio
bution n bution bution bution

18 42 42 125 248 84 250 496 126 376 744 168 501 991 210 626 1239
19 41 46 137 271 92 274 543 138 411 814 183 545 1080 228 679 1346

20 40 50 149 295 100 298 590 150 447 885 198 590 1169 248 739 1464
21 39 54 161 319 108 322 637 162 483 956 215 641 1269 269 802 1588

22 38 59 176 348 117 349 690 177 527 1045 234 697 1381 292 870 1723
23 37 64 191 378 127 378 749 192 572 1133 254 757 1499 318 948 1877

24 36 70 209 413 139 414 820 208 620 1228 277 826 1635 346 1031 2042
25 35 76 226 449 151 450 891 226 674 1334 301 897 1776 376 1121 2219

26 34 82 244 484 164 489 968 246 733 1452 327 975 1930 409 1219 2414
27 33 90 268 531 178 530 1050 268 799 1582 356 1061 2101 446 1329 2632

28 32 97 289 572 194 578 1145 292 870 1723 388 1156 2290 485 1445 2862
29 31 106 316 626 212 632 1251 318 948 1877 423 1261 2496 529 1577 3122

30 30 116 346 685 231 688 1363 347 1034 2048 462 1377 2727 577 1720 3405
31 29 126 376 744 252 751 1487 379 1129 2237 504 1502 2974 630 1878 3718

32 28 138 411 814 276 823 1629 414 1234 2443 551 1642 3252 689 2053 4066
33 27 151 450 891 302 900 1782 453 1350 2673 602 1794 3553 752 2241 4438

34 26 165 492 974 330 983 1948 495 1475 2921 659 1964 3889 824 2456 4863
35 25 181 539 1068 362 1079 2136 543 1618 3205 722 2152 4261 902 2688 5323

36 24 198 590 1169 396 1180 2337 594 1770 3506 792 2360 4674 990 2950 5843
37 23 218 650 1287 436 1299 2573 654 1949 3860 870 2593 5134 1087 3239 6415

38 22 240 715 1416 480 1430 2833 720 2146 4249 957 2852 5648 1196 3564 7058
39 21 264 787 1558 528 1574 3116 792 2360 4674 1054 3141 6220 1318 3928 7778

40 20 291 867 1717 582 1734 3435 873 2602 5152 1164 3469 6869 1454 4333 8581

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 Frequently Asked Questions - Atal Pension Yojana

1. What is pension? Why do I need it?

A Pension provides people with a monthly income when they are no longer earning.

Need for Pension:


Decreased income earning potential with age.

The rise of nuclear family-Migration of earning members.

Rise in cost of living.

Increased longevity.

Assured monthly income ensures dignified life in old age.

2. What is Atal Pension Yojana?

Atal Pension Yojana (APY), a pension scheme for citizens of India, is focused on the
unorganised sector workers. Under the APY, guaranteed minimum pension of Rs. 1,000/- or
2,000/- or 3,000/- or 4,000 or 5,000/- per month will be given at the age of 60 years
depending on the contributions by the subscribers.

3. Who can subscribe to APY?

Any Citizen of India can join APY scheme. The following are the eligibility criteria:-

(i) The age of the subscriber should be between 18 - 40 years.

(ii) He / She should have a savings bank account/ post office savings bank account
.

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The prospective applicant may provide Aadhaar and mobile number to the bank during
registration to facilitate receipt of periodic updates on APY account. However, Aadhaar is not
mandatory for enrolment.

4. For how many Years Government will co-contribute?

The co-contribution of the Government of India is available for 5 years, i.e., from the
Financial Year 2015-16 to 2019-20 for the subscribers, who join the scheme during the period
from 1st June, 2015 to 31st March, 2016 and who are not covered by any Statutory Social
Security Scheme and are not income tax payers. The Government co-contribution is payable
to eligible Permanent Retirement Account Number (PRANs) by the Pension Fund regulatory
and Development Authority (PFRDA) after receiving the confirmation from Central Record
Keeping Agency to the effect that the subscriber has paid all the installments for the year
Government co-contribution will be credited in subscriber’s savings bank account/ post office
savings bank account 50% of the total contribution subject to a maximum of Rs 1000/- at the
end of financial year .

5. Who are the other social security schemes beneficiaries not eligible to receive
Government co-contribution under APY?

The beneficiaries, who are covered under statutory social security schemes, are not eligible
to receive Government co-contribution under APY. For example, members of the Social
Security Schemes under the following enactments would not be eligible to receive
Government co-contribution under APY:

(i) Employees’ Provident Fund and Miscellaneous Provision Act, 1952.

(ii) The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
(iii) Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
(iv) Seamens’ Provident Fund Act, 1966.
(v) Jammu Kashmir Employees’ Provident Fund and Miscellaneous Provision Act,
1961.

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(vi) Any other statutory social security scheme.

6. How much pension will be received under APY?

Minimum guaranteed monthly pension of Rs 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/-

per month will be given from the age of 60 years onwards depending on the contributions by
the subscribers.

7. What is the benefit in joining APY scheme?

The benefit of minimum pension under Atal Pension Yojana would be guaranteed by the
Government in the sense that if the actual realised returns on the pension contributions are
less than the assumed returns for minimum guaranteed pension, over the period of
contribution, such shortfall shall be funded by the Government. On the other hand, 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. The
Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum,
whichever is lower, to each eligible subscriber, who joins the scheme during the period 1st
June, 2015 to 31st March, 2016 and who is not a beneficiary of any social security scheme and
is not an income tax payer. The Government co-contribution will be given for 5 years from
the Financial Year 2015-16 to 2019-20. At present, a subscriber under the National Pension
System (NPS) is eligible to get tax benefit for the contribution, upto a ceiling, and even for
the investment returns on such contributions. Further, the purchase price of the annuity on
exit from NPS is also not taxed and only the pension income of the subscribers are considered
to be part of normal income and taxed at the appropriate marginal rate of tax, applicable to
the subscriber. It is proposed that a similar tax treatment may be given to the subscribers of
APY. However, presently, a similar tax dispensation, on par with that available under NPS, is
yet to be accorded to subscribers under APY.

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8. How the contributions are invested in APY?

The contributions under APY are invested as per the investment guidelines prescribed by
PFRDA for Central Government / State Government / NPS-Lite / Swavalamban Scheme / APY.

9. What is the procedure for opening APY Account?

(i) Approach the bank branch/post office where individual’s savings bank account is held
or open a savings account if the subscriber doesn’t have one.

(ii) Provide the Bank A/c number/ Post office savings bank account number and with the
help of the Bank staff, fill up the APY registration form.

(iii) Provide Aadhaar / Mobile Number. This is not mandatory, but may be provided to
facilitate the communication regarding contribution.

(iv) Ensure keeping the required balance in the savings bank account/ post office savings
bank account for transfer of monthly / quarterly / half yearly contribution.

10. Whether Aadhaar Number is compulsory for joining the scheme?

It is not mandatory to provide Aadhaar number for opening APY account. It is however
desirable to provide Aadhaar Number for proper identification of the subscriber.

11. Can I open APY Account without savings bank account?

The savings bank account/ post office savings bank account is mandatory for joining APY.

12. What is the mode of contribution to the account?

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The contributions can be made at monthly / quarterly / half yearly intervals through auto-
debit facility from savings bank account/ post office savings bank account of the subscriber.

13. How much to contribute towards APY?

The monthly / quarterly / half yearly contribution depends upon the intended / desired
monthly pension and the age of subscriber at entry. The details may be referred to in Annex I.

14. What is the due date for contribution?

The contribution may be paid to APY through savings bank account/ post office savings bank
account on any date of the particular month, in case of monthly contributions or any day of
the first month of the quarter, in case of quarterly contributions or any day of the first month
of the half year, in case of half-yearly contributions.

15. What will happen if required or sufficient amount is not maintained in the savings
bank account for contribution on the due date?

The subscribers should keep the required balance in their savings bank accounts/ post office
savings bank account on the stipulated due dates to avoid any overdue interest for delayed
contributions. The monthly / quarterly / half-yearly contribution may be deposited on the
first date of month / quarter / half year in the savings bank account/post office savings bank
account . However, if there is inadequate balance in the saving bank account/ post office
savings bank account of the subscriber till the last date of the month / last date of the first
month in a quarter / last day of the first month in a half year, it will be treated as a default
and contribution will have to be paid in the subsequent month along with overdue interest for
delayed contributions. Banks are required to collect Rs. 1 per month for contribution of every
Rs. 100, or part thereof, for each delayed monthly contributions.

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Overdue interest for delayed contribution for quarterly / half yearly mode of contribution
shall be recovered accordingly. The overdue interest amount collected will remain as part of
the pension corpus of the subscriber.

More than one monthly / quarterly / half yearly contribution can be recovered subject to
availability of the funds. In all cases, the contribution is to be recovered along with the
overdue charges if any. This will be bank’s internal process. The due amount will be
recovered as and when funds are available in the account.

16. What will happen to APY account in case of continuous default?

Deduction would be made in the subscribers account for account maintenance charges and
other related charges on a periodic basis. Once the account balance in the subscriber’s
account becomes zero due to deduction of account maintenance charges, fees and overdue
interest, the account would be closed immediately. For those subscribers, who have availed
Government co-contribution, the account would be treated as becoming zero when the
subscriber corpus minus the Government co-contribution would be equal to the account
maintenance charges, fees and overdue interest and hence the net corpus becomes zero. In
this case, the Government co-contribution would be given back to the Government.

17. What are the fee and charges involved in maintaining the APY account? Table

of all charges and fees of APY

Intermediary Charge Head Service charge Method of

collection

Intermediary Charge Head Service charge Method of

collection

Points of (i) Initial Rs.120/- to 150/-, Paid by

Presence subscriber depending upon the Government as
registration number of subscribers. incentive,

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 promotion and
Rs.100/- per annum per development
(ii) Subsequent subscriber. charges for APY,
Persistence on the pattern of
Swavalamban

Central (i) Account Rs.15/- per account. Cancellation of

Recordkeeping opening Charges units.
Agencies
(ii) Account Rs. 40/- per account per
Maintenance annum.
Charges

Pension Fund Investment 0.0102% per annum of Adjusted in Net

Managers Management Fee AUM Asset Value

Custodian Investment 0.0075% for electronic Adjusted in Net

Maintenance Fee and 0.05% per annum for Asset Value
physical segment of AUM

18. Is it required to furnish nomination while joining the scheme?

Yes. It is mandatory to provide nominee details in APY account. If the subscriber is married,
the spouse will be the default nominee. Unmarried subscribers can nominate any other person
as nominee & they have to provide spouse details after marriage. The Aadhaar details of
spouse and nominees may be provided.

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19. How many APY accounts I can open?

A subscriber can open only one APY account and it is unique. Multiple accounts are not
permitted.

20. Will there be any option to increase or decrease the monthly contribution for higher
or lower pension amount?

The subscribers can opt to decrease or increase pension amount during the course of
accumulation phase, once a year. However, the switching option shall be available once in
year during the month of April.

21. What is the withdrawal procedure from APY?

A. On attaining the age of 60 years:

Upon completion of 60 years, the subscribers will submit the request to the associated bank
for drawing the guaranteed minimum monthly pension or higher monthly pension, if
investment returns are higher than the guaranteed returns embedded in APY. The same
amount of monthly pension is payable to spouse (default nominee) upon death of subscriber.
Nominee will be eligible for return of pension wealth accumulated till age 60 of the
subscriber upon death of both the subscriber and spouse.

B. In case of death of the subscriber due to any cause after the age of 60
years:

In case of death of subscriber, pension would be available to the spouse and on the death of
both of them (subscriber and spouse), the pension wealth accumulated till age 60 of the
subscriber would be returned to the nominee.

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C. Exit before the age of 60 Years:

Exit before 60 years of age is generally not permitted, it may be permitted by PFRDA only in
exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease
etc., in-line with the provisions for pre-mature exit under NPS.

In case a subscriber, who has availed Government co-contribution under APY, chooses to
voluntarily exit APY at a future date, he shall only be refunded the contributions made by him
to APY, along with the net actual accrued income earned on his contributions (after deducting
the account maintenance charges). The Government co-contribution, and the accrued income
earned on the Government co-contribution, shall not be returned to such subscribers.

D. Death of subscriber before 60 years:

The entire accumulated corpus under APY will be returned to the spouse / nominee.
However, pension shall not be payable to the spouse / nominee.

22. How will I know the status of my contribution?

The periodical information to the subscribers regarding activation of PRAN, balance in the
account, contribution credits etc. will be intimated to APY subscribers by way of SMS alerts.
The subscriber will also be receiving physical Statement of Account once a year.

23. Will I get any statement of transactions?

The physical statement of APY account will be provided to the subscribers annually.

24. If I move my residence / city, how can I make contributions to APY account?

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The contributions may be remitted through auto debit uninterruptedly even in case of change
of residence / location.

25. What will happen if a subscriber becomes non-citizen of the country?

The scheme is open to the Indian citizens only. Hence, in that event the APY account will be
closed and contribution will be returned to the subscriber as mentioned above in the case of
voluntary exit before the age of 60 years.

26. What will happen to existing subscribers in NPS-Lite / Swavalamban Yojana?

(A) Subscriber between the age group of 18 and 40:

The subscriber would be automatically migrated to APY with an option to opt out. The
associated aggregator will facilitate those subscribers for completing the process of
migration. The subscribers may also approach the nearest authorised bank branch/post office
for shifting their Swavalamban account into APY with PRAN details.

The benefit of co-contribution of the Government of India for those subscribers of

Swavalamban Scheme who have migrated to APY would not exceed 5 years under both the
Schemes. For example, if a Swavalamban beneficiary has received the benefit of Government
co-contribution for 1 year, then the Government co-contribution to that subscriber under
APY, after migration from the Swavalamban Scheme, would be available only for 4 years, and
so on.

The existing Swavalamban beneficiary opting out from the proposed automatic migration to
APY will be given Government co-contribution upto 2016-17, if he is eligible, and the NPS
Swavalamban would continue till such people attained the age of exit under that scheme.

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The accumulated corpus of existing Swavalamban subscriber between the age group of 18 and
40 years, who get migrated to APY will be kept under the same PRAN and remain as an
additional wealth of the subscriber till the time of exit. This additional amount may be given
to the subscriber as enhanced pension benefit or as lump-sum withdrawal, as the case may
be. The contribution of such subscribers under APY, after migration from the Swavalamban
Scheme to APY, would be as per the amount mentioned in the Annex –I, depending on the
pension amount selected and the age of the subscriber.

(B) Subscriber above 40 years of age:

The subscribers under the Swavalamban Scheme, who are beyond the age of 40 and who do
not wish to continue under the Scheme, may opt out by complete withdrawal of entire
amount in lump sum, or may prefer to continue till the age of 60 years, to be eligible for
annuities there under.

27. If I am an existing subscriber of APY, can I change my monthly auto debit facility to
Quarterly or Half Yearly as per my convenience?

Yes, the subscriber can change the mode (monthly/ quarterly/half yearly) of auto debit
facility once in a year during the month of April

28. If I have completed 40 years, can I join Atal Pension Yojana?

No, a person who is in age group of 18 years to 39 years 364 days can join Atal Pension
Yojana.

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