Witnessing the success of Varishtha Pension Bima Yojana 2003 and Varishtha Pension Bima Yojana 2014 schemes, GOI in a bid to protect the post-retirement life, in a falling interest rate scenario, has come out with assured pension scheme called Pradhan Mantri Vaya Vandana Yojana (PMVVY).
Pradhan Mantri Vaya Vandana Yojana (PMVVY) Features
1. Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme initiated by Government of India exclusively for Senior Citizens aged 60 years and above and is available for subscription/purchase from 4th May, 2017 to 3rd May, 2018.
2. PMVVY is available for subscription/purchase either offline or online through Life Insurance Corporation of India (LIC) which has been given the sole responsibility to operate the scheme.
3. The Scheme is a simplified pension scheme which will provide assured return of 8% per annum and is payable on monthly basis for 10 years. The effective return comes to 8.30% per annum for 10 years.
4. Pension is payable at the end of each period i.e. monthly/ quarterly/ half-yearly/ yearly as selected by the pensioner at the time of purchasing the scheme during the policy tenure of 10 years.
5. Death Benefits: On the death of the pensioner during the policy tenure of 10 years, the purchase price will be paid to the beneficiary.
6. Maturity Benefits: On the survival of the pensioner at the end of the policy tenure of 10 years, purchase price along with the last/final installment of pension will be paid.
7. Premature Exit: On the event of premature exit opted by the pensioner for the treatment of any critical/ terminal illness of self or spouse, 98% of the purchase price shall be refunded to the pensioner.
8. Loan: Up to 75% of the purchase price can be sanctioned as loan but only after 3 years of subscription.
Interest on the loan will accrue as per the frequency of the pension payment and shall be recovered from the pension amount and the loan principal amount shall be adjusted from the claim benefit.
9. Eligibility Conditions and Pension Amount
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Minimum Entry Age: 60 years (completed)
Maximum Entry Age: No limit
Policy Tenure: 10 years
|Mode of Pension||Minimum Purchase Price||Maximum Purchase Price||Minimum Pension amount||Maximum Pension amount|
For example: If you want pension of Rs.5,000 per month for 10 years then you have to purchase Pradhan Mantri Vaya Vandana Yojana (PMVVY) for Rs.7,50,000.
Do note that the ceiling limit of pension amount is for whole family which comprises of pensioner, his/her spouse and dependants. This means only one senior citizen per family can purchase the Pradhan Mantri Vaya Vandana Yojana (PMVVY).
1o. Goods and Service Tax: Pradhan Mantri Vaya Vandana Yojana (PMVVY) is exempts from GST.