India Proposed Separating National Pension Scheme Trust From Pension Regulator PFRDA

The government has proposed to separate the National Pension Scheme Trust from pension regulator Pension Fund Regulatory and Development Authority in order to address issues over conflict of interest. The PFRDA implements and regulates the NPS and Atal Pension Yojana through various intermediaries including, the NPS Trust. The matter of conflict of interest arises as PFRDA is the regulator of the pension sector in India, at the same time it runs pension schemes such as NPS and APY.

“Keeping in view the wider interest of the subscribers and to maintain arm's length relationship of the NPS Trust with PFRDA, steps will be taken to separate the NPS Trust from PFRDA with appropriate organisational structure,” Finance Minister Nirmala Sitharaman said in the Union Budget 2019-20 presented in Parliament on Friday. The trust was established by the PFRDA for taking care of the assets and funds under the NPS. The proposal to separate the two job roles was under consideration for last few years.

APY, mainly targeting the unorganised sector employees, offers five slabs of pension from Rs 1,000-5,000 per month upon retirement. Employees in the age bracket of 18-40 years can sign up for an APY account. The NPS is a voluntary, defined contribution retirement savings scheme for government employees as well as for those working in the private sector.



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Everything you want to know about Atal Pension Yojana in indian

Atal Pension Yojana was introduced to benefit those people in the unorganised sector. The scheme provides financial security for old age and helps people deal with illness, accidents and diseases. The scheme also benefits private sector employees who are not given pension benefits by their company. Under this scheme, the investors get a fixed pension of Rs 1000, Rs 2000, Rs 3000, Rs 4000, or Rs 5000 on attaining an age of 60. The amount depends on the individual’s age and the contribution amount. Interestingly, Atal Pension Yojana had replaced the Swavalamban Yojana, which wasn't very popular among people.

According to the guidelines by the Government of India, the money invested through Atal Pension Yojana scheme is managed by the Pension Funds Regulatory Authority of India (PFRDA). The government would also make a co-contribution of 50% of the total contribution, or Rs 1000 per annum, whichever is lower, to all eligible subscribers who had joined between June 2015 and December 2015 for a period of 5 years i.e., for financial years 2015-16 to 2019-20.

Atal Pension Yojana eligibility:
To get the benefits of Atal Pension Yojana, an individual must:

- Be a citizen of India.

- Be between the age of 18-40.

- Make contributions for a minimum of 20 years.

- Must have a bank account linked with Aadhar.

- Must have a valid mobile number

Atal Pension Yojana: How to apply?

1. Visit any bank and start an account.

2. Download the Atal Pension Yojana form online. The forms are available in English, Hindi, Bangla, Gujarati, Kannada, Marathi, Odia, Tamil, and Telugu.

3. Fill the Atal Pension Yojana form and submit it to your bank along with mobile number and a photocopy of your Aadhaar card.

4. You will be sent a confirmation message when the application is approved.

Atal Pension Yojana monthly contributions:

The investors have the option to make contributions for monthly/quarterly/semi-annual intervals. All the contributions are made through auto-debit facility from the savings account of the subscriber. This amount depends upon the amount of pension a subscriber wants to receive upon retirement.

Atal Pension Yojana income tax benefits:

An individual can claim tax benefits up to Rs 1.5 lakh under section 80C as part of Atal Pension Yojana. Additionally, an income tax deduction of up to Rs 50,000 can be availed under the section 80CCD (1B) of the Income Tax Act of 1961.

Atal Pension Yojana important facts:

- The subscribers can increase the premium at their will.

- In case you default on your payments, a penalty of Re 1 per month for a contribution of every Rs 100 or part thereof is levied.

- If the default continues for six months, the account is frozen.

- What is critical to know is hat early Atal Pension Yojana withdrawal is not entertained. The entire amount is only given in case of death or terminal illness.



https://www.zeebiz.com/personal-finance/news-atal-pension-yojana-eligibility-monthly-contributions-how-to-apply-tax-benefits-important-facts-apy-scheme-benefits-pfrda

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