The new pension scheme, called Atal Pension Yojana, would be different from the existing Swavalamban pension and would come into effect from June 1. While the former pension scheme never gave an idea on how much one would receive as pension or how much one could earn, the new scheme offers a guaranteed income to members after they attain 60 years of age.
Nominee services are available and the nominee would get the full savings, along with pension, if the pension holder expires.
Those in the age group of 18 to 40 can join and the scheme is meant for those who do not receive gratuity, provident fund benefits etc. The accounts may be opened in banks that have been authorised to open them. The amount that one has to deposit would depend on how much one expects as pension and the years remaining to attain 60 years of age.
Details of the programme would be published soon. Those who have enrolled in the Swavalamban scheme can switch to the new plan easily.
As per the new scheme, 50 per cent of the amount that a member deposits in the plan annually would be matched by the government - up to a maximum of Rs 1,000 - for the first five years. This would be available for those who deposit at least Rs 2,000 a year. The annual rate of interest would be eight per cent.
A person 18 years of age has to deposit Rs 210 a month until he/she is 60 years of age to receive a monthly pension of Rs 5,000. Those who pay taxes cannot join the scheme and the scheme would be managed by the Pension Fund Regulatory Authority.