The Pension Fund Regulatory and Development Authority (PFRDA) has made a request to the government to increase the guaranteed pension amount provided by the Atal Pension Yojana (APY). This request stems from concerns that the current pension amounts may not be enticing enough for potential subscribers. APY is a contributory scheme designed to establish a universal social security system for workers in the unorganized sector. Subscribers aged 18 to 40 contribute and are eligible to receive a fixed pension ranging from Rs 1,000 to Rs 5,000 upon reaching the age of 60. PFRDA is the statutory body responsible for regulating India’s pension sector, established in 2013.
Facts/Terms for UPSC Prelims
- Atal Pension Yojana (APY): A contributory scheme in India aimed at providing social security for workers in the unorganized sector, offering fixed pension amounts to subscribers upon reaching the age of 60.
- Universal Social Security System: A comprehensive system that ensures financial protection and social security for all citizens, especially those in the informal or unorganized sectors of the economy.
- Contributory Scheme: A program where individuals make regular financial contributions, often with employer contributions, to a fund that provides benefits, such as pensions or insurance, in the future.
- Pension Fund Regulatory and Development Authority (PFRDA): A statutory body established in 2013 to regulate and develop India’s pension sector, ensuring the security and growth of pension funds and schemes for citizens.
