My family member is unemployed, sometimes works in a private sector without EPF or other genocide. I suppose Atal Pension Yojana scheme is for such people, is this correct?
What will happen to APY account if they join a company with EPF after 3 or4 years? And they again have to discontinue the Job after another 2 years?
Is there any better pension scheme which such people can join?
VS-First of all, there is no link between APY and profession. You can invest in APY if you are doing job or business. Second thing, APY can be subscribed by anyone. There is no such constraint that EPF or NPS members can’t opt for APY. So the person in question, can continue his APY account irrespective of his job status.
From documentation of the APY scheme, “Eligibility for APY: Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme. ” Doesn’t EPF, PPF etc. part of the statutory security schemes? From this I got confused that if the member join APY, after few years join a job, what will happen.
VS-Please note that, only Govt contribution of 50% of what you pay for 5 years, will not be eligible for such members who come under statutory social security schemes. It means that, you can invest in APY but not possible to get Govt contribution. Read my earlier post “Atal Pension Yojna (APY)-New Pension Scheme details and benefits“.