Pension fund regulator PFRDA has suggested for an increase in the monthly pension limit under Atal Pension Yojana (APY). It also suggested that there should be an increase in the age limit to join the pension scheme. He suggested to increase this to 60 years which is currently 40 years. Atal Pension Yojana is a government scheme pension scheme that meant employees of the unorganised sector employees as well as self employed. It is open for those between 18 and 40 years .
“We have been asking for increasing the age limit for subscription under Atal Pension Yojana (APY) from 40 to 60 years. And also to increase the pension limit from existing ₹5,000 a month to ₹10,000 per month under APY,” PFRDA Whole Time Member Supratim Bandyopadhyay told news agency Press Trust of India.
Pension Fund Regulatory and Development Authority of India (PFRDA), which administers National Pension System (NPS), is also responsible for the administration of Atal Pension Yojana.
However, if the actual returns on the pension contributions are greater than the assumed returns for minimum guaranteed pension, over the period of contribution, such excess will be credited to the subscriber’s account, which will result in the increase benefits to the account holders.
The PFRDA has also requested the government to increase the income tax deduction limit to ₹1 lakh for investment in Tier I NPS account under Section 80CCD (1B) of the Income Tax Act. Apart from this it requested the government to extend the tax free contribution facility of 14% to all categories of subscribers.