Updated 12:01 pm, Aug 08, 2019

Atal Pension Scheme may be tweaked; maximum entry age to be raised to 50 | SNE

By  The Economic Times Dheeraj Tiwari .
Jan 10, 2017

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NEW DELHI: The government may tweak the Atal Pension Yojana by adding more slabs of guaranteed pension and raising the maximum age limit for entering the scheme to 50 years.

The current maximum guaranteed pension is Rs 5,000 per month. “All suggestions are being deliberated. One is to add slabs in the minimum guaranteed pension amount. The highest slab could be up to Rs 10,000,” said a government official, who did not wish to be named.

At present, the minimum age of joining the scheme is 18 years and maximum is 40 years. “This is also being looked at,” the official said, adding that higher contributions would be mandated for such subscribers that join the scheme at high ages.

Under APY, the age of exit and start of pension is 60 years. The minimum period of contribution by a subscriber under APY is 20 years or more. An individual has to contribute Rs 1,454 per month if she enrolls in APY at the age of 40 to stand eligible for a monthly pension of Rs 5,000.

There are 39 lakh subscribers in APY till December 2016 with assets under management (AUM) worth Rs 1,498 crore. APY is managed by Pension Fund Regulatory and Development Authority (PFRDA), which has suggested extending capital gains regime applicable to mutual funds to National Pension System Tier II accounts.

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