The Union Cabinet on Wednesday decided to indefinitely extend the Atal Pension Scheme, which lapsed in August while doubling the accident insurance and relaxing the age criteria by five years to further incentivize the scheme.
Atal Pension Yojana (APY) is a social security scheme launched by the government in 2015 to provide a defined pension between Rs 1,000 to Rs 5,000.
The Atal Pension Yojana became operational from June 1, 2015, and is available to all the citizens of India in the age group of 18-40 years.
Under the scheme, a subscriber would receive a minimum guaranteed pension of Rs 1,000 to Rs 5,000 per month, depending upon his contribution, from the age of 60 years.
The same pension would be paid to the spouse of the subscriber and on the demise of both the subscriber and the spouse, the accumulated pension wealth is returned to the nominee.
The Central Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, that is, from 2015-16 to 2019-20, to those who join the NPS before 31st December 2015 and who are not members of any statutory social security scheme and who are not Income Taxpayers.