June 14, 2018

After PFRDA feedback, govt considers Hiking Pension Amount Under APY To Rs. 10000/Month


On June 12, a top official said that the government is considering a proposal to raise the pension limit under Atal Pension Yojana (APY) to up to Rs 10,000 per month from the existing slab of up to Rs 5,000.

There is a need to increase the value of pension under APY, Madnesh Kumar Mishra, Joint Secretary, Department of Financial Services (DFS), said at a conference organised by Pension Fund Regulatory and Development Authority (PFRDA) .

“We have seen the proposal (sent by PFRDA) of increasing the pension value to (up to) Rs 10,000 per month and it is under our active examination,” Mishra added.

If approved, it will attract more people towards the scheme and provide better inflation-beating returns. “We have placed this proposal with the government that it should be increased,” said Hemant G. Contractor, Chairman, PFRDA, at the Atal Pension Yojana Annual Conference held on June 12, 2018.

"Currently, we have five slabs of pension from Rs 1,000-5000 per month. There has been a lot of feedback from the market asking for higher pension amounts because many people feel that Rs 5,000 at the age of 60 years, 20-30 years from now, will not be sufficient.

"We have placed this proposal with the government that it should be increased to up to Rs 10,000," Contractor said.

Atal Pension Yojana, which was introduced in June 2015 and aims to provide sustainable old-age income for more than 80% of India’s workforce, had recently touched the 10 million subscriber mark, with nearly five million people enrolling for the scheme in 2017-18. It is specifically aimed at the unorganized sector.

Contractor further stated that, PFRDA added about 50 lakh new subscribers under the scheme in 2017-18 and hopes to add another 60-70 lakh in the ongoing financial year.

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