PFRDA received feedback from the market, asking for higher pension amounts because Rs 5,000 at the age of 60 was not sufficient.
Despite the recommendation of the Pension Fund Regulatory and Development Authority (PFRDA), the Union Finance Ministry has not increased the pension amount under the Atal Pension Yojana. In reply to this query in the Lok Sabha, the Union Minister of State, Finance, Bhagwat Karad said that the increase will also hike the subscription amount for the pensioners. An increase in the subscription amount of Atal Pension Yojana will burden the subscriber. Hence, the PM Narendra Modi-led government has decided not to raise the Atal Pension Yojana pension amount.
Read More: Is Senior Citizen Saving Scheme Better Than Fixed Deposits?
To quote the Union Minister of State Bhagwat Karad, “Atal Pension Yojana scheme offers a minimum guaranteed pension and any increase in pension amount is likely to increase the subscription amount substantially and put further burden on the subscriber. Therefore, it has been decided to continue the scheme with the same terms and conditions and not to further increase the pension and subscription amount.”
Earlier, PFRDA Chairman Hemant G Contractor sent the proposal with the aim to increase the Atal Pension Yojana subscriber base. Currently, the scheme offers five slabs of pension from Rs 1,000-5000 per month. PFRDA received feedback from the market, asking for higher pension amounts because Rs 5,000 at the age of 60 years was not sufficient.
An individual, who enrols in the Atal Pension Yojana from the age of 60 onwards, will be guaranteed a maximum income of Rs 5,000 per month until death. A subscriber may change the pension amount once every fiscal year, while the pension is still in the accumulation period. The spouse may continue to make payments to the subscriber’s Atal Pension Yojana account if the subscriber passes away before turning 60. If so, the account may continue to be held in the name of the spouse for the balance of the vesting period, or until the original subscriber would have reached the age of 60.
For those who are younger than 60, an early exit is permitted under Atal Pension Yojana once account upkeep, investment management and other fees will be deducted. The subscriber will only receive their contributions to the Atal Pension Yojana and their net real accrued income.
The co-contribution amount that a participant got during the first five years of participation in the plan will not be paid out if the money is withdrawn early. All exit requests must be forwarded to the Central Record Keeping Agency (CRA) by the Atal Pension Yojana service providers along with a cover letter showing how the request will be handled.
