Why in news?
The Atal Pension Yojana (APY), launched in 2015 to provide pension security to informal workers, celebrated its tenth anniversary and crossed 8 crore enrolments, with about 39 lakh new subscribers added in the current financial year.
Scheme overview
- APY is a voluntary, contributory pension scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA). It is designed for Indian citizens aged 18 to 40 years who work in the unorganised sector.
- Participants choose a pension amount between ₹1,000 and ₹5,000 per month, which they will receive after turning 60. Contributions are made monthly, quarterly or half‑yearly through automatic bank debits.
- Early subscribers who were not taxpayers and did not have other pension coverage received government co‑contributions of up to ₹1,000 per year from 2015 to 2020.
Key features
- The central government guarantees the minimum pension; if actual investment returns fall short, the government covers the difference.
- Spouses receive the same pension after the subscriber’s death, and nominees get the corpus after both have passed away.
- Early exit is permitted but usually involves a reduced benefit; in the event of the subscriber’s death before 60, the spouse may continue the scheme or withdraw the accumulated amount.
Significance
- APY provides social security for millions of informal workers who lack formal pension coverage.
- The scheme encourages long‑term savings and financial inclusion, supporting the government’s goal of a universal social security system.
- Its success depends on sustained awareness campaigns and improved ease of enrolment through digital platforms.
