Pension regulator PFRDA had recommended increasing the maximum amount of pension under the Atal Pension Yojana (APY) from Rs 5,000 to Rs 10,000. However, the central government did not implement it.
Now the Union Minister of State in the Ministry of Finance Dr. Bhagalat Karad has clarified the government’s stand on this matter. He said that at present the maximum amount is Rs 5,000 for which the account holder has to pay a premium of Rs 42 to 1454. If the maximum amount of pension is increased, then the premium will also increase.
He said that this would put additional burden on the subscriber and hence the government decided that the maximum pension limit under the Atal Pension Yojana would not be increased. At present, monthly pension of Rs 1,000, 2,000, 3,000, 4,000 and 5,000 is available under the Atal Pension Yojana. The amount to be charged for the premium depends on the age of the subscriber at the time of joining the scheme and the amount of pension he wants.
Dr. Karad said, “The recommendation of the Pension Fund Regulatory and Development Authority (PFRDA) to increase the pension amount under the Atal Pension Yojana was considered. APY ensures a minimum guaranteed pension and any increase in the amount of pension means an increase in the subscription amount which will be borne by the account holder. Therefore, it was decided to run the scheme with the existing terms and conditions and not to increase the pension or subscription amount further.
What is Atal Pension Yojana
PFRDA only operates the Atal Pension Yojana. Any Indian in the age group of 18-40 years can invest in this. In this, money has to be put till the age of 60 years and after that you get a fixed pension every month. You have already decided this pension at the time of starting investment in the scheme and you have contributed accordingly. If an account holder dies before the age of 60 years, then the deposited amount is returned to his nominee. On the other hand, if the spouse of the deceased is alive, then he can continue this scheme.