To help the organised sector which is greatly affected by COVID 19, PFRDA has now stopped the auto debit of contributions for the government’s flagship Atal Pension Yojana (APY) till 30th June. There are around 2.23 Crore subscriber of this Pension Scheme, mostly from the unorganised sector. The monthly contributions are usually collected through the auto debit mode in this scheme.
“The majority APY subscribers belong to the lower strata of the society, which as indicated above are expected to suffer the most during the lock-down and post lock-down for some period. In such scenario, it may be difficult for them to keep contributing to the scheme regularly during such period,” said the PFRDA Circular.
Starting from the 1st July to 30th September 2020, APY subscribers would be able to pay the deferred monthly contributions, without any interest. Normally, subscribers have to pay a penalty of 1% on the account of default. The PFRDA Circular added that intimation regarding payment of deferred contributions will be notifed.
In Atal Pensio Yojna, subscribers get a guaranteed monthly pension from ₹1,000 per month to ₹5,000 per month from the age of 60. This pension is fully taxable as per the Income Taxt act. Anyone of age between 18-40 can join this APY. In this scheme they are required to contribute monthly which may vary depending on their age and the pension amount they want. For example, a 30 year old subscriber must pay ₹116 per month for a pension of ₹1,000 per month at the age of 60. 73% of APY subscribers have chosen ₹1,000 as their pension amount.