Atal Pension Yojana (APY) – Maximum monthly pension may raised to Rs 10,000 and the maximum age limit for enrolling in the scheme may be raised to 50 years
The Finance Ministry is considering a proposal to relax the maximum monthly pension paid under the Atal Pension Yojana (APY) to Rs 10,000 and raise the maximum age limit for enrolling in the scheme to 50 years. Presently, the scheme benefiting un-organised sector workers allows enrolments for those aged between 18 and 40. The scheme also provides minimum guaranteed monthly pension of Rs 1,000 to Rs 5,000 from the age of 60. “We have recommenced the finance ministry to increase the age limit and double the maximum guaranteed monthly pension payout. We have also shared the subscription rates and submitted the actuarial valuation report with the government,” said Supratim Bandopadhyay, member (Finance), PFRDA. “We have shared our submissions, but how much financial commitment the government would be able to make is its call.
The PFRDA proposed merging the pension schemes available separately for farmers and shopkeepers with APY to avoid confusion. The APY, a flagship pension scheme of the government to cover the workers in the unorganised sector, has now crossed the 19 million subscription mark, data until Nov end showed. PFRDA aims to increase the subscriber base to 22.5 million by March 2020. The pension regulator had indicated in the past that enrolment of the first 10 million subscribers had taken three years, while it took only 18 months thereafter to double the subscriber base. ET had recently reported that the finance ministry is considering a proposal to allow PFRDA to become the single regulatory authority for all pension products. An announcement to that effect is expected in the upcoming budget. The government is considering doubling the tax benefits currently available under the national pension scheme (NPS) to Rs 1 lakh under Section 80CCD (1b) and making the annuity income tax-free. Currently, the annuity received is taxable in the year of receipt.