PFRDA – Modalities for auto enrolment
The auto enrollment in pension system would be applicable to employees/ members of Micro Industries, SSI units, Anganwadi workers, Asha workers etc. who are beneficiaries of govt. scheme.
Enterprises which could be sole proprietorship, partnership etc. with less than 19 employees will be required to automatically enroll all their full-time employees into APY. Employer contribution towards the pension will be voluntary. The employee will be given option to opt out of the system any time after one year following automatic enrolment. Contributions already made will be refunded after adjustment of account opening, maintenance etc. charges. Employers must automatically re-enroll their eligible jobholders who chose to opt out or cease active membership on a three-yearly cycle. This will give employees opportunity to reconsider their decision to opt out at regular intervals in case their situation has changed since then.
i) Informal sector groups to be covered:
– Micro Industries and Enterprises
– Small Scale Industries
– Construction Sector
– Gram Panchayat and other organisations as may be identified from time to time
There are five schemes under APY, providing guaranteed pension of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 and Rs. 5000 per month at the age 60 and employees can opt to join any of these.
iii) Opt out option
All employees have to automatically enroll their eligible workers, unless the employee opts out.