Atal Pension Yojana (APY), a government’s minimum guaranteed pension scheme specially for workers in the unorganised sector has performed far better than most pension plans. The scheme has given over 11% returns in the last one year. LIC Pension Fund has given 10.94% in the last one year, SBI Pension Fund has generated 11.24% and UTI Retirement Solutions has given 11.01% in the same time period, shows data from Value Research. What does it mean for a subscriber? Will he receive a higher pension amount?
APY provides a minimum pension ranging from ₹1,000 to ₹5,000 on attaining the age of 60. But if your contributions earn more than the assumed rate of return for the minimum guaranteed pension, the excess sum earned would be given to you as an additional benefit.
“If the actual returns on the pension contributions are higher than the assumed returns for minimum guaranteed pension, over the period of contribution, such excess shall be credited to the subscriber’s account, resulting in enhanced scheme benefits to the subscribers,” says PFRDA.
