Atal Pension Yojana (APY) and PMVVY

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.