Flexible Pension Contribution

Agustus 14, 2018   Lok Sabha Q &A, Pension   Comment  

Flexible Pension Contribution

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

UNSTARRED QUESTION NO: 4138

ANSWERED ON: 10.08.2018

Flexible Pension Contribution

RAJESHBHAI NARANBHAI CHUDASAMA

Will the Minister of

FINANCE travel pleased to state:-

(a) whether the Government proposes for flexible pension contribution for the informal workers inward the province as well as if so, the details of proposal therein;

(b) if not, the proposal of Government for the people amongst irregular incomes as well as peculiarly the women of the province who convey no regular incomes; and

(c) the details of the study of the Pension Fund Regulatory as well as Development Authority (PFRDA) as well as Credit Rating Information Services of Republic of Republic of India Limited (CRISIL) on the pension proposal towards elderly women empowerment?

ANSWER

The Minister of State inward the Ministry of Finance

(a) &( b) The Atal Pension Yojana (APY) was launched inward May, 2015 as well as is operational from 1st June, 2015. The APY is primarily focussed on all citizens inward the unorganised sector, who are non covered past times whatsoever pension scheme. All citizens of the province inward the eligible category may bring together the scheme. As on 06.08.2018, the full let out of subscribers nether APY is 1,09,66,981, out of which, 43,87,993 subscribers are women. The salient features of the Atal Pension Yojana are equally under:

• Indian Citizens betwixt the historic catamenia grouping of xviii to twoscore years eligible to bring together APY through their savings banking concern trace organisation human relationship or post service purpose savings banking concern account.
• APY is based on defined produce goodness for providing guaranteed minimum monthly pension of Rs. one 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 at the historic catamenia of threescore years based on pension amount chosen.
• The Central Government would also co-contribute 50% of the full contribution or Rs. one 1000 per annum, whichever is lower, to each eligible subscriber, for a catamenia of v years, i.e., from Financial Year 2015-16 to 2019-20, who convey joined the APY earlier 31st March, 2016, as well as who are non members of whatsoever statutory social safety system as well as who are non income revenue enhancement payers.
• In illustration of premature drib dead of Subscriber (death earlier threescore years of age), husband of the subscriber has been given an alternative to proceed contributing to APY trace organisation human relationship of the subscriber, for the remaining vesting period, till the master subscriber would convey attained the historic catamenia threescore years.
• In illustration of drib dead of both subscriber as well as spouse, the entire pension corpus would travel returned to the nominee.
• If the accumulated corpus based on contributions earns a lower than estimated render on investment as well as is inadequate to supply the minimum guaranteed pension, the Central Government would fund such inadequacy. Alternatively, if the actual returns during the accumulation stage are higher than the assumed returns for minimum guaranteed pension, such excess volition travel passed on to the subscriber.

With a persuasion to supply flexibility to the subscribers of APY amongst seasonal or irregular income, too the monthly means of payment, quarterly as well as one-half yearly means of payment of contributions convey been provided inward the Scheme. Further inward illustration of default inward payment of contribution, a subscriber may regularize the trace organisation human relationship past times paying the overdue amount along amongst a minimal accuse to obtain the guaranteed pension.

(c) The Pension Fund Regulatory as well as Development Authority (PFRDA) has informed that the study of PFRDA as well as CRISIL on ‘Financial safety for India’s elderly’ has, inter-alia, mentioned designing of a pension policy entirely for women where contributions could travel from the women’s families. Some revenue enhancement relief to the savings held inward the degree of pension has also been mentioned.