The Pension Fund Regulatory and Development Authority (PFRDA) has submitted a proposal to increase the limit of pension and age which the government is looking into.
The proposal, under the Atal Pension Yojana (APY), is being examined by the government, said Union Minister of Finance Corporate Affairs, Nirmala Sitharaman in a written reply to Parliament.
The APY is based on defined benefit for providing a guaranteed minimum monthly pension of Rs 1,000/Rs 2,000/Rs 3,000/Rs 4,000/Rs 5,000 at the age of 60 years based on the pension amount chosen.
The scheme is available to account-holders between the age of 18 to 40 and offers a minimum guaranteed monthly pension of between Rs 1,000 and Rs 5,000, depending on the customer's contribution which starts at as low as Rs 42 per month.
In addition, the spouse gets a monthly pension after the death of the subscriber and the nominee gets the corpus amount of up to Rs 8.5 lakh in the event of the death of the subscriber and the spouse.
As per the APY rules, from the age of 60 years, a subscriber would receive a minimum guaranteed pension of Rs 1000-Rs 5000 per month, depending upon his contribution. The same pension would be paid to the spouse of the subscriber and on the demise of both the subscriber and spouse, the accumulated pension wealth is returned to the nominee.