APY Pension Scheme: Here is how to increase, decrease your pension amount

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Updated: March 29, 2019 8:37:37 PM

If you are looking to increase or decrease your pension amount in APY, here is how to upgrade or downgrade your pension account, both offline or online.

 Atal Pension Yojana, APY, upgrade pension, downgrade pension,increase, decrease pension,PRAN,Permanent Retirement Account Number A subscriber can opt to decrease or increase pension amount during the course of the accumulation phase and accordingly, the difference will have to be paid or will be refunded.

If you are a subscriber of the Atal Pension Yojana(APY) scheme, you must be contributing a fixed amount towards it. Under the APY rules, a subscriber would receive a minimum guaranteed pension of Rs.1000 to Rs.5000 per month, depending upon his contribution, from the age of 60 years. 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.

There is inbuilt flexibility in the APY scheme. In case one needs to increase or decrease the pension amount, there is a provision made in the scheme. The subscribers can opt to decrease or increase pension amount during the course of the accumulation phase, as per the available monthly pension amounts.

Illustratively, someone at age 30 looking to have a pension of Rs 1,000 from age 60, will have to contribute Rs 116 each month till age 60. However, at age 33 he or she decides to upgrade the APY pension account to say Rs 3,000 or Rs 5,000, it is possible to be upgraded. Similarly, the downgrade is also possible by reducing the pension amount from say Rs 4,000 to Rs 3,000.

In case of an upgrade or downgrade, the bank has to be intimated by filling up a form and giving an authorisation to the bank for the additional contribution to be paid for Upgraded pension account. In case of a downgrade of pension account, the differential amount would be refunded to the subscriber through direct credit to the bank account (registered under APY). All the contributions into the APY are made either monthly, quarterly or half-yearly through the auto-debit facility from the savings bank account of the subscriber.

One can upgrade or downgrade the APY pension account either online or offline. The upgrade or downgrade of pension under APY will be chargeable. Bank will charge Rs. 25 which will be paid by subscriber upfront to the bank while the CRA charges of Rs. 25 would be deducted from APY account. APY subscriber can upgrade or downgrade a pension amount once in a year.

Online upgrade or downgrade APY account

For upgrading the APY pension account, one may visit the following link which enables the user to check the differential amount to be given or to be received as per the new pension amount chosen.
(https://npslite-nsdl.com/CRAlite/APYUPDNGradeView.do)

One has to enter the PRAN – Permanent Retirement Account Number and the new pension amount.
The monthly pension amount is the amount that you wish to get from age 60. It can be Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, Rs 5,000.

Similarly, For downgrading the APY pension account, one may visit the following link and enter the PRAN- Permanent Retirement Account Number and the new pension amount.
(https://npslite-nsdl.com/CRAlite/APYDNGradeView.do)

Offline upgrade or downgrade APY account

To upgrade or downgrade the pension account offline, one has to fill a form and submit it to the bank where the account is registered. The form can be downloaded from the link
(https://npscra.nsdl.co.in/nsdl/forms/Form_to_Upgrade-Downgrade_Pension_under_APY.pdf)
One will have to mention the revised pension amount in the form. The bank will then enter the revised contribution amount.

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