This is the third post regarding the
Insurance Policy Schemes by Government of India 2015.
First two were:
1.
PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA (PMJJBY) &
2.
PRADHAN MANTRI SURAKSHA BIMA YOJANA (PMSBY)
There is always two aspects of life a human being goes through (Death or Life) so all three plans provided by Govt of India are basic Insurance + Pension schemes.
Other day i was having a conversation with an agent from SBI Life Insurance he was really motivating the way we should invest for our future and plan from right now so live a healthy old age life.
Adding more about two aspect:
1. Death: You've insured yourself for Term Plan/Death Cover/Accidental Plans
2. Life: Means living longer., now if you haven't planned yet then you should re-think and invest accordingly for old age., so this is where the 3rd plan fits in:
Atal Pension Yojana 2015 (APY)
What is Pension:
Pension provides family 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.
Atal Pension Yojana Scheme:
A Pension Scheme for citizens of India focussed on the unorganised sector workers.
Under the APY, guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers
Eligibility:
Any Citizen of India can join APY scheme. The following are the eligibility criteria,
1. The age of the subscriber should be between 18 - 40 years.
2. He / She should have a savings bank account/ open a savings bank account.
3. The prospective applicant should be in possession of mobile number and its details are to be furnished to the bank during registration.
4. Government co-contribution is available for 5 years, i.e., from 2015-16 to 2019-20 for
the subscribers who join the scheme during the period from 1st June, 2015 to 31st December, 2015 and who are not covered by any Statutory Social Security Schemes and are not income tax payers.
Beneficiaries not eligible to receive Government co-contribution:
Beneficiaries who are covered under statutory social security schemes are not eligible to receive Government co-contribution. For example, members of the Social Security Schemes under the following enactments would not be eligible to receive Government co-contribution:
1. Employees’ Provident Fund & Miscellaneous Provision Act, 1952.
2. The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
3. Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
4. Seamens’ Provident Fund Act, 1966.
5. Jammu Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961.
6. Any other statutory social security scheme
Benefits of APY:
Guaranteed minimum pension of Rs 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.
In APY, Government will co-contribute 50% of the total contribution or Rs. 1,000/- per annum, whichever is lower, to the eligible APY account holders who join the scheme during the period 1st June, 2015 to 31st December, 2015. The Government co-contribution will be given for 5 years from FY 2015-16 to 2019-20
Procedure for opening APY Account:
1. Approach the bank branch where individual’s savings bank account is held. (Mandatory to have Savings Account)
2. Fill up the APY registration form.
3. Provide Aadhaar/Mobile Number.
4. Ensure keeping the required balance in the savings bank account for transfer of monthly contribution.
It is not mandatory to provide Aadhaar number for opening APY account. However,
For enrolment, 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
All the contributions are to be remitted monthly through auto-debit facility from
savings bank account of the subscriber.
What happens if sufficient amount is not maintained in the savings bank account:
Non-maintenance of required balance in the savings bank account for contribution on the specified date will be considered as default. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10/- per month as shown below:
1. Re. 1 per month for contribution upto Rs. 100 per month.
2. Re. 2 per month for contribution upto Rs. 101 to 500/- per month.
3. Re 5 per month for contribution between Rs 501/- to 1000/- per month.
4. Rs 10 per month for contribution beyond Rs 1001/- per month.
Discontinuation of payments of contribution amount shall lead to following:
- After 6 months account will be frozen.
- After 12 months account will be deactivated.
- After 24 months account will be closed.
Subscriber should ensure that the Bank account to be funded enough for auto debit of
contribution amount. The fixed amount of interest/penalty will remain as part of the pension
corpus of the subscriber
Note:
1. A subscriber can open only one APY account and it is unique.
2. 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.
3. It is mandatory to provide nominee details in APY account. The spouse details are also mandatory wherever applicable. Their aadhaar details are also to be provided.
Withdrawal procedure from APY:
A. On attaining the age of 60 years:
The exit from APY is permitted at the age with 100% annuitisation of pension wealth. On exit, pension would be available to the subscriber.
B. In case of death of the Subscriber due to any cause:
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 corpus would be returned to his nominee.
C. Exit Before the age of 60 Years:
The Exit before age 60 would be permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.
Checking Balance and Status:
1. The status of contributions will be intimated to the registered mobile number of the subscriber by way of periodical SMS alerts. The Subscriber will also be receiving physical Statement of Account.
2. Periodic statement of APY account will be provided to the subscribers.
What will happen to existing subscribers in Swavalamban Yojana:
All the registered
subscribers under Swavalamban Yojana aged between 18-40 yrs will be automatically migrated to APY with an option to opt out. However, the benefit of five years of Government Co-contribution under APY would be available only to the extent availed by the Swavalamban subscriber already. This would imply that if, as a Swavalamban beneficiary, he has received the benefit of government Co-Contribution of 1 year, then the Government co-contribution under APY would be available only for 4 years and so on. Existing Swavalamban beneficiaries opting out from the proposed APY will be given Government co-contribution till 2016-17, if eligible, and the NPS Swavalamban continued till such people attain the age of exit under that scheme.
- Other subscribers above 40 years who do not wish to continue may opt out of thescheme with lump sum withdrawal.
- Subscribers above 40 years may also opt to continue till the age of 60 years and eligible for annuities.
- The existing Swavalamban scheme may be automatically migrated to APY.
Age of Entry
|
Years of Contribution |
Monthly pension of Rs. 1000 |
Monthly pension of Rs. 2000 |
Monthly pension of Rs. 3000 |
Monthly pension of Rs. 4000 |
Monthly pension of Rs. 5000 |
| 18 |
42 |
42 |
84 |
126 |
168 |
210 |
| 19 |
41 |
46 |
92 |
138 |
183 |
228 |
| 20 |
40 |
50 |
100 |
150 |
198 |
248 |
| 21 |
39 |
54 |
108 |
162 |
215 |
269 |
| 22 |
38 |
59 |
117 |
177 |
234 |
292 |
| 23 |
37 |
64 |
127 |
192 |
254 |
318 |
| 24 |
36 |
70 |
139 |
208 |
277 |
346 |
| 25 |
35 |
76 |
151 |
226 |
301 |
376 |
| 26 |
34 |
82 |
164 |
246 |
327 |
409 |
| 27 |
33 |
90 |
178 |
268 |
356 |
446 |
| 28 |
32 |
97 |
194 |
292 |
388 |
485 |
| 29 |
31 |
106 |
212 |
318 |
423 |
529 |
| 30 |
30 |
116 |
231 |
347 |
462 |
577 |
| 31 |
29 |
126 |
252 |
379 |
504 |
630 |
| 32 |
28 |
138 |
276 |
414 |
551 |
689 |
| 33 |
27 |
151 |
302 |
453 |
602 |
752 |
| 34 |
26 |
165 |
330 |
495 |
659 |
824 |
| 35 |
25 |
181 |
362 |
543 |
722 |
902 |
| 36 |
24 |
198 |
396 |
594 |
792 |
990 |
| 37 |
23 |
218 |
436 |
654 |
870 |
1,087 |
| 38 |
22 |
240 |
480 |
720 |
957 |
1,196 |
| 39 |
21 |
264 |
528 |
792 |
1,054 |
1,318 |
| 40 |
20 |
291 |
582 |
873 |
1,164 |
1,454 |
High Lights:
Minimum Investment, Maximum Benefits during old-age.
| Age of Joining |
Years of Contribution |
Indicative Monthly Contribution
(in Rs.) |
Monthly Pension to the
subscribers and his spouse (in Rs.) |
Indication Return Corpus to the
nominee of the subscribers (in Rs.) |
| 18 |
42 |
210 |
5,000 |
8.5 Lakhs |
| 20 |
40 |
248 |
5,000 |
8.5
Lakhs |
| 25 |
35 |
376 |
5,000 |
8.5 Lakhs |
| 30 |
30 |
577 |
5,000 |
8.5
Lakhs |
| 35 |
25 |
302 |
5,000 |
8.5 Lakhs |
| 40 |
20 |
1,454 |
5,000 |
8.5
Lakhs |
Fixed monthly pension from Rs.1000 to Rs.5000 depending on the contributions.
- The Premium will be deducted from the account holder's savings bank account through auto-debit facility.
- The person would be eligible to join this scheme through one savings bacnk account only.
- Contact your bank branch or Bank mitra/Insurance agent immediately.
For More information call:
National toll free number: 1800 110 001 / 1800 180 1111
Visit: www.jansuraksha.gov.in / www.financialservices.gov.in
