Atal pension yojana 2021

Recently the Pension Fund Regulatory and Development Authority (PFRDA) has announced that Asset Under Management under National Pension System (NPS) and Atal Pension Yojana (APY). (Assets Under Management- AUM) has crossed the limit of Rs 6 lakh crore (6 trillion).

Asset under management is the total market value of an investment that an individual or entity manages on behalf of investors.

Main points

National Pension System:

About National Pension System:

• This system was introduced by the central government in January 2004 (except for the armed forces).
• In order to streamline it in the year 2018 and to make it more attractive, the Union Cabinet approved changes in the scheme to benefit the central government employees covered under it.
• NPS is being implemented and regulated by PFRDA in the country.
• The National Pension System Trust set up by PFRDA is the registered owner of all the properties covered under NPS.

Structure: The structure of NPS is two tier:

• Tier- 1 Account:
• It is a non-withdrawable permanent retirement account, in which the accumulated amount is invested at the option of the subscriber.
• Tier- 2 Account:
• This is a voluntary withdrawable account which is allowed only if the customer has an active Tier-I account in his name.
• Subscriber is free to withdraw his savings amount from this account as per his wish.

Beneficiary:

• NPS is available to all citizens of India since May 2009.
• Any citizen of India (both resident and non-resident) in the age group of 18-65 years can join NPS.
• But under this Overseas Citizens of India and Persons of Indian Origin card holders and Hindu Undivided Family are not eligible to open accounts.

Atal Pension Yojana:

About Atal Pension Yojana:

• The scheme was launched in May 2015 with an aim to create a universal social security system for all Indians, especially the poor, underprivileged and workers in the unorganized sector.
• This scheme has been implemented on a large scale across the country, in which the ratio of males and females is 57:43 in all the states and union territories.
• However, so far only 5% of the eligible population has been covered under this.

Administered:

• The scheme is administered by 'Pension Fund Regulatory and Development Authority' through NPS.

Eligibility:

• Any citizen of India aged between 18-40 years can join this scheme.
• In this plan, the contribution amount of the late joiner is high and the contribution amount of the early joiner is less.

the profit:

• It provides a minimum guaranteed pension of Rs 1000 to Rs 5000 on attaining the age of 60 years.
• On the death of the subscriber, the spouse is guaranteed pension for life.
• In case of death of both the subscriber and his/her wife/husband, the entire pension amount is paid to the nominee.

Pension Fund Regulatory and Development Authority

• It is a statutory authority established by an Act of Parliament to regulate, promote and ensure the orderly development of the National Pension System (NPS).
• It works under the Department of Financial Services, Ministry of Finance.

Work:

• It works for the appointment of various intermediary agencies like- Pension Fund Manager, Central Record Keeping Agency etc.
• It develops, promotes and regulates the pension industry under NPS and also manages the APY.