New Delhi: The government on Sunday said the APY (Atal Pension Yojna) scheme, announced in the Budget, will be launched on June 1 and will focus on all citizens in the unorganised sector entitling them to a pension of up to Rs 5,000 per month after 60 years of age.
The scheme would be launched from June 1.
The existing subscribers of the 'Swavalamban' scheme would be automatically migrated to the APY pension scheme unless they opt out.
"The APY will be focused on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA) and who are not members of any statutory social security scheme," the Finance Ministry said in a statement.
Under the APY, the subscribers would receive fixed pension in the range of Rs 1,000 to Rs 5,000 per month, at the age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY.
"The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more," it said. The benefit of fixed pension would be guaranteed by the government.
"The central government would also co-contribute 50 per cent of the subscriber's contribution or Rs 1,000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years," it added.
"People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium," it said, adding that there would be a premium of Rs 330 per annum for risk coverage up to Rs 2 lakh.
It said the Pradhan Mantri Suraksha Bima Yojana will be available to the people in the age group of 18-70. It will provide for the risk of accidental death and full disability Rs 2 lakh and for partial disability Rs 1 lakh at an annual premium of Rs 12.