If you have invested in Atal Pension Yojana (APY) scheme last year, then good news has arrived for you. The government of India will be co-contributing a total of Rs 121 crore to eligible subscribers. APY is among many retirement scheme launched by government, encouraging citizens to save for their future. Atal Pension Yojana is being implemented through APY Service Providers comprising of Public Sector Banks(PSBs), Private Sector Banks, Regional Rural Banks (RRBs), Cooperative Banks and Department of Post both in urban and rural areas across the country. 

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Ministry of Finance on Tuesday stated that, the subscribers who have registered before March 2016 with an amount of 50% of the subscribers contribution up-to a maximum of Rs 1000 then these subscribers will be eligible for co-contribution for a period 5 years from 2015-16 to 2019-20. However, only those subscribers who are not income tax payers and not part of any other social security schemes are eligible for Government of India co-contribution.

However, the ministry has warned subscribers who have pending contributions in their Atal Pension Yojana account till March 2017, that they won't be paid anything. They have been advised by PFRDA to regularize their APY account so as to avail Government co-contribution. 

“Government of India co-contribution is payable only when accounts are regular and the admissible Government of India co-contribution is paid into the Savings Bank account of the Subscribers,” said the ministry. 

With this, a total of 14 lakh subscribers are together eligible for the Rs 121 crore co-contribution. 

However, not many of us would be aware of this scheme, thus here’s a list of factor one should know about APY if they also want to avail such benefits. 

Atal Pension Yojana (APY) was launched by the govt in 2015-16 budget to address the longevity risks among the workers in unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement, who constitute 88% of the total labour force. 

Under the Atal Pension Yojana, the subscribers would receive a fixed minimum pension of Rs 1000 per month, Rs 2000 per month, Rs 3000 per month, Rs 4000 per month, Rs 5000 per month, at the age of 60 years, depending on their contributions, which itself is based on the age they joined 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. Fixed pension for the subscribers ranging between Rs. 1000 to Rs. 5000, if he joins and contributes between the age of 18 years and 40 years.  The contribution levels would vary and would be low if subscriber joins early and increase if he joins late. 

APY 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.  However the scheme will continue after this date but Government Co-contribution will not be available. 

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. 

Under APY, the individual subscribers shall have an option to make the contribution on a monthly basis. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Rs 1 per month to Rs 10 per month. 

Exit before 60 years of age is not permitted however it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease. 

Thus, if you plan to opt for APY account then do remember these pointers. 

As on April 12, 2018, he total number of subscribers registered under APY has crossed 97.60 lakhs.