By Kumar Shankar Roy Apr 28 2015 , Kolkata
Pension regulator PFRDA has come out with details of Atal Pension Yojana (APY), which was announced as a scheme focussed on citizens in the unorganised sector.
The APY will provide a defined pension, depending on the contribution and its period. Under the APY, the subscribers would receive the fixed minimum pension of Rs 1,000-5,000 per month, at the age of 60 years depending on the contributions by the subscribers.The APY will be launched in June. To open APY account, one has to approach the bank branch where individual’s savings bank account is held.
Aadhaar/mobile number will have to be provided while filling the form. As per PFRDA, the contributions under APY are invested as per the guidelines prescribed by ministry of finance.
The amount collected under APY will be managed by pension funds appointed by PFRDA as per the investment pattern specified by the govt. The subscriber will, however, have no option to choose either the investment pattern or the pension fund.
Aadhaar would be the primary KYC document for identification of beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term, PFRDA said. Also, the due date for monthly contribution will be as per the initial date of deposit of contribution into APY. Non-maintenance of required balance in the savings bank account for contribution on the specified date will be considered as default.
Banks will collect additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10 per month. Discontinuation of payments of contribution amount shall lead to account being frozen after 6 months, deactivation after 12 months and closure after 24 months.
The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in year during the month of April, PFRDA said. Exit before 60 years of age would be permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.
kumarshankar
@mydigitalfc.com