Premature Death of the subscriber in Atal Pension Yojana

 

Atal Pension Yojana (APY) amendment in case of premature death of the subscriber

The Central Govt. has decided to extend the beneficiary benefits of the subscribers of the Atal Pension Yojana (APY). As per the new developments in the pension scheme, the Govt. has decided to give pension wealth to the nominee of the pension scheme in case of death of the account holder and his/her spouse. In addition to this, in case of death of the subscriber, the spouse may continue to save money in the pension fund till the subscriber’s age reaches 60 years.

Premature Death of the subscriber in Atal Pension Yojana

What was the existing scenario in case of death of the account holder?

As per the present scenario of the Atal Pension Yojana, the spouse gets a amount of money after the death of the account holder. Premature death means when the contributor dies before the age of 60 years and the total tenure period is not fulfilled. But these terms are not favourable for many users of the Atal Pension Yojana. As per some research analysis, the spouses of the contributors want to contribute to the pension account even after the death of the subscribers. They want to invest in the ongoing pension policy and get maximum benefits out of the Atal Pension plan.

Atal Pension Yojana details

Atal Pension Yojana is one of the pension plans introduced by the Modi Govt. which aims to provide pensions to the workers of the unorganized sectors and the economic backward masses. The main idea is to provide monthly pensions to the backward masses as most of them work in unorganized sectors with no job security and retirement benefits. In Govt. Sectors or other public sectors, or even in the private firms, there are some benefits given to the employees after they get retired. It may be in form of a lump sum amount after retirement or monthly pension. But those who do not get such facilities find it difficult after they get old.

Atal Pension scheme important data:

Sl. No. Atal Pension Yojana Particulars Related information
1 Year of Launch June, 2015
2 Regulating body Pension Fund Regulatory and Development Authority
3 Minimum age of entry 18 years
4 Maximum age of entry Before the completion of 40 years.
5 Pension receiving time After attaining 60 years age
6 Targeted population Poor , backward classes, women, employees of unorganized sectors, non-income tax payers etc.
5 Range of pension per month Rs. 1,000 to Rs. 5,000 per month.
6 Contribution by the Govt. in the pension fund 50 % of annual subscription amount or Rs. 1,000 (lower amount)
7 Where to open APY accounts? Nationalized banks and post offices.
8 Nomination facility Available

Amendment for contribution by spouse

Till now, only the account holder can invest in the pension plan till he / she attains 60 years of age. But from now onwards, after a special amendment by the Govt., the living spouse can also save money in the pension account and get the same benefits of Atal Pension Yojana.

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