The pension regulatory body has asked all banks to process upgrade/downgrade of pension amount requests of APY subscribers throughout the year with effect from July 1, 2020.
New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has decided to allow Atal Pension Yojana (APY) subscribers to either increase or decrease contribution anytime. This measure taken by the PFRDA will allow greater flexibility to pension account holders.
The pension regulatory body has asked all banks to process upgrade/downgrade of pension amount requests of APY subscribers throughout the year with effect from July 1, 2020. Subscribers can update pension amount once in a year. Earlier this facility was available only during the month of April year.
According to the PFRDA, “This arrangement will enable the Atal Pension Yojana (APY) subscribers to increase/decrease their pension plans as per their changed income levels and capacity to pay APY contributions, which is very important to continue contributions in the scheme till 60 years.”
In addition, the auto-debit facility of APY contribution, which as temporarily suspended till June 30, 2020, has also been started with effect from July 1. This was done to reduce the financial stress on APY subscribers caused due the coronavirus induced lockdown.
What is Atal Pension Yojana?
The Atal Pension Yojana was launched by the Government of India in May, 2015 and is administered by PFRDA. This scheme is open to all citizens of India who are in the age group of 18-40 years. Under the scheme, a subscriber will receive a minimum guaranteed pension of Rs 1,000 to Rs 5,000 per month after attaining the age of 60 years, depending upon his contributions.
After the death of the subscriber, the same pension amount will be paid to the spouse of the subscriber. On the demise of both subscriber and spouse, the accumulated pension wealth as accumulated till age 60 years of the subscriber would be returned to the nominee.