Atal Pension Yojana: PFRDA aims to cover this number from unorganised sector workers

The Pension Fund Regulatory and Development Authority (PFRDA) aims to cover around 45 crore people in the unorganised sector under its schemes, its member Supratim Bandyopadhyay said on Friday. The PFRDA, which runs the Atal Pension Yojana (APY) and National Pension System (NPS) schemes, and has currently around 3 crore subscribers.

"Our idea is to reach 45 crore people who are in the unorganised sector and having no access to any financial products," Bandyopadhyay, a Whole Time Member of the authority, said in Delhi at the APY Felicitation Programme. Around 55 per cent of the total PFRDA subscribers are under the APY scheme which is for unorganised sector workers.

Atal Pension Yojana

Under the APY, introduced from 1st June, 2015, subscribers would receive the fixed minimum pension from Rs 1000 to 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. The minimum age of joining APY is 18 years and maximum age is 40 years, therefore, minimum period of contribution by any subscriber under APY would be 20 years or more. The benefit of fixed minimum pension would be guaranteed by the government. 

Benefits: The subscribers will get fixed pension ranging between Rs 1000 to Rs 5000 per month, if they join and contribute between the age of 18 years and 40 years. The contribution levels would vary and would be low if a subscriber joins early and increase if he/she joins late. 

Eligibility: Atal Pension Yojana is open to all bank account holders. The Central government would also co-contribute 50% of the total contribution or Rs 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, i.e., from Financial Year 2015-16 to 2019-20. 

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The government co-contribution is payable to eligible PRANs by PFRDA after receiving the confirmation from Central Record Keeping Agency at such periodicity as may be decided by PFRDA.