Extension of Atal Pension Yojana up to 2030–31

Context

The Union Cabinet, chaired by the Prime Minister of India, has approved the extension of the Atal Pension Yojana (APY) up to 2030–31, along with sustained budgetary support for outreach activities, system enhancement, and gap funding.

Atal Pension Yojana (APY): An Overview

Nature of the Scheme: A voluntary, government-supported pension programme that assures a fixed monthly income after the age of 60, with a primary focus on workers in the unorganised sector.

Year of Introduction: 9 May 2015

Administrative Framework: Regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and implemented through banks and post offices.

Objectives

• To provide income security in old age to economically weaker and unorganised sector workers.
• To promote disciplined savings and expand financial inclusion.

Key Provisions

• Assured Pension: Guaranteed monthly pension of ₹1,000 / ₹2,000 / ₹3,000 / ₹4,000 / ₹5,000 after attaining 60 years of age.
• Eligibility Norms: Indian citizens aged 18–40 years having a savings bank or post office account.
• Contribution Pattern: Subscriber-driven contributions with automatic debit on a monthly, quarterly, or half-yearly basis until 60 years.
• Family Protection: In case of the subscriber’s death, the spouse receives the same pension; the accumulated corpus is subsequently paid to the nominee.
• Restriction on Enrolment: Income-tax payers are not eligible for fresh enrolment from 1 October 2022.
• Investment Arrangement: Funds invested as per PFRDA guidelines through authorised pension fund managers.

Importance

• Strengthens social security by ensuring financial dignity in old age for unorganised workers.
• Supports deeper financial inclusion and India’s gradual transition towards a pension-based social security system.

Source : PMI