Atal Pen­sion Yo­jana (APY) and PMVVY

Consumer Voice - - Bfsi Guide -

Atal Pen­sionYo­jana (launched on 1 June 2015) (open for all work­ers in the un­or­gan­ised sec­tor; sub­scribers of Swavalam­ban scheme can mi­grate to APY)

Min­i­mum en­try age is 18 years. Max­i­mum en­try age is 40 years. Min­i­mum amount of pen­sion op­tion is Rs 1,000 per month. Max­i­mum amount of pen­sion is Rs 5,000 per month. It is pri­mar­ily meant for those work­ing in the un­or­gan­ised sec­tor. The max­i­mum pen­sion amount cor­pus is Rs 850,000, from which one will re­ceive pen­sion con­tri­bu­tion of Rs 5,000 per month (there are no Q/HY/Y op­tions). The ben­e­fit of min­i­mum pen­sion will be guar­an­teed by the govern­ment of In­dia. Pre­mium amount paid can be claimed un­der Sec­tion 80CCD. Cur­rent limit for 80CCD tax ex­emp­tion is Rs 50,000. As­sign­ment fa­cil­ity is not avail­able. This scheme is avail­able through­out the year. This is an open-ended scheme. No op­tional ben­e­fits are avail­able.

PMVVY (launched on 4 May 2017) (Govern­ment-sub­sidised pen­sion scheme)

Min­i­mum en­try age is 60 years. There is no max­i­mum en­try age limit Min­i­mum amount of pen­sion is Rs 1,000 per month, or Rs 3,000 per quar­ter, or Rs 6,000 per half-year, or Rs 12,000 per an­num. Max­i­mum amount of pen­sion is Rs 60,000 per year with three op­tions on M/Q/HY ba­sis. It is pri­mar­ily meant for se­nior cit­i­zens who are 60 or above 60 years of age. The max­i­mum pen­sion amount avail­able is Rs 60,000 per year with M/Q/HY op­tions, on a max­i­mum pur­chase price of Rs 750,000 (which is the cor­pus amount). It pro­vides for 8 per cent guar­an­teed re­turns (8.30 per cent an­nu­alised) per an­num. No in­come tax ben­e­fit is avail­able as of now. As­sign­ment fa­cil­ity is avail­able only favour­ing LIC for ob­tain­ing a loan. This scheme is open for sub­scrip­tion only for one year. This is at present a close-ended scheme and the term (pe­riod of con­tri­bu­tion) is for 10 years. This scheme has three ben­e­fits – pen­sion/sur­vival ben­e­fit, ma­tu­rity ben­e­fit and death ben­e­fit.

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