The Atal Pension Yojana (APY) is a government-sponsored pension scheme for workers in the economy’s informal sectors, such as daily wage earners and domestic help. The scheme offers four monthly pension slabs upon reaching the age of 60: Rs 1,000, Rs 2,000, Rs 4,000, and Rs 5,000, based on monthly contributions. The government pays 50 per cent of a member’s annual payments, or Rs 1,000, whichever is less, and provides tax deductions for contributions under Section 80CCD (1) of the Income Tax Act 1961.

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Here are exit guidelines for APY.

Death Before 60

If the subscriber dies before 60, the spouse has two options: close or continue the APY account. The corpus will be settled in the spouse’s name if the spouse wishes to close the account. The corpus will be settled in the nominee’s name if the member is unmarried, divorced, or separated, or the spouse expires. Other than a spouse, the claimant must submit a legal heir certificate signed by an executive magistrate indicating the relationship with the subscriber.

If the spouse wants to continue the account, they can maintain it in the spouse’s name for the vesting period or until the period the original subscriber, when alive, would have reached the age of 60. In that case, the spouse will be entitled to receive the pension amount until the spouse’s death. The nominee will receive the accumulated funds if both the subscriber and the spouse are dead.

Death After 60

If the subscriber dies after 60, the subscriber’s spouse will be entitled to receive the same pension amount until the spouse dies. When both are dead, the nominee must submit an account closure form to the APY branch where the account was held. The branch official must confirm the details.

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Voluntary Exit

If you exit before reaching 60 while alive due to a specified illness, you will only receive a refund of your contributions and applicable interest, but the government’s contribution and interest will be withheld.

The list of specified illnesses includes cancer, kidney failure, primary pulmonary arterial hypertension, multiple sclerosis, major organ transplant, coronary artery bypass graft, aorta graft surgery, heart valve surgery, stroke, myocardial infarction, coma, total blindness, paralysis, serious/life-threatening accident, and any other critical illness specified by the Pension Fund Regulatory & Development Authority (PFRDA).