Govt extends time for co-contribution under APY till March

Government today extended by 3 months, till March 31, its 50 per cent co-contribution plan under Atal Pension Yojana (APY), a move aimed at benefiting the unorganised sector.
A guaranteed pension scheme, APY provides monthly pension ranging from Rs 1,000 to Rs 5,000 per month to subscribers.
Under the scheme the government co-contributes 50 per cent of the subscriber's contribution or Rs 1,000 per annum, whichever is lower.
"The government has decided that the co-contribution by the central government of 50 per cent of the total prescribed contribution up to Rs 1,000 per annum, will be available for those eligible subscribers, who join APY before March 31," a finance ministry statement said.

APY was launched in June, 2015, and the benefit of co-contribution under the scheme was initially available till December 2015.
This measure is likely to benefit a substantial number of people who have not been able to join APY and therefore have failed to avail of the benefit of co-contribution by the government till December 31.

Government's co-contribution would be valid for a period of 5 years, from 2015-16 to 2019-20.
The statement said that the decision to extend the date was taken after careful consideration of feedback received from various quarters.
APY is administered by the Pension Fund Regulatory and Development Authority (PFRDA) and is aimed at addressing the longevity risks among the workers in unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement.

Government has already enrolled over 12.50 lakh subscribers under APY within six months of its launch.