January 09, 2025 01:17 pm (IST)
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Finance ministry amends Atal Pension Yojana options
New Delhi, Mar 22 (IBNS) The Union Finance Ministry said on Tuesday that the Atal Pension Yojana (APY) has been amended to give an option to the spouse to continue to contribute for balance period on premature death of the subscriber.
According to the ministry, feedback received from various quarters has indicated that the present provision under APY of handing-over lump sum amount to spouse on premature death of the subscriber is not preferred by many subscribers.
It has also highlighted the fact that there is growing demand to give an option to the spouse to continue contribution after the death of subscriber to enable him / her to draw pension when the deceased subscriber would have turned 60 years of age.
Therefore, after considering the feedback, the central Government has decided to give an option to the spouse of the subscriber to continue contributing to APY account of the subscriber, for the remaining vesting period, till the original subscriber would have attained the age of 60 years instead of present provision of handing-over lump-sum amount to spouse on the premature death (death before 60 years of age) of the subscriber.
The spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse.
After the death of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age of 60 years of the subscriber.
In exceptional circumstances, that is, in the event of the death of beneficiary or specified illness, as mentioned in the PFRDA (Exit and withdrawals under the National Pension System) Regulations, 2015, before the age of 60 years, the accumulated pension wealth till date would be given to the nominee or the subscriber as the case may be.
The central government had introduced the Atal Pension Yojana (APY) with effect from June 1, 2015 to address the longevity risks among workers in the unorganised sector and to encourage the workers in the unorganised sector to voluntarily save for their retirement.
Under APY, each subscriber, on completion of 60 years of age, will get the guaranteed minimum monthly pension, or higher monthly pension, if the investment returns are higher than the assumed returns for minimum guaranteed pension, over the period of contribution.
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