Now the senior citizen will get more benefits under the pension scheme, because the Cabinet has approved the Varishtha Pension Bima Yojana 2017 to provide a guaranteed minimum interest rate to senior citizens. Prime Minister Narendra Modi addressed the launch of Old Age Pension Scheme on New Year Eve 2017 and now the scheme got the approval from the cabinet.
Features of Varishtha Pension Bima Yojana 2017
- The Old Age Pension Scheme would be implemented by LIC (Life Insurance Corporation of India) for current financial year, however the launch of VPBY 2017 has not been declared yet.
- From launch date, the scheme will be opened for the subscription period of one year.
- The scheme will provide income security to old persons aged 60 years and above against uncertain market falls.
- VPBY will provide an assured pension based on a guaranteed interest rate of 8% for 10 years.
- The scheme will come up with an option of monthly/quarterly/half-yearly or annual basis benefits so that the beneficiary can choose any of the options under Varishtha Pension Bima Yojana 2017.
- The maximum amount to deposit under Varishtha Pension Bima Yojana 2017 has not been mentioned, however PM had addressed in his New Year Eve speech that upto Rs. 7.5 lakh could be invested in Old Age Pension Scheme.
Varishtha Pension Bima Yojana 2017: How it Works?
The differential returns of VPBY 2017 would be paid to LIC by government and this process of distributing returns is different from the returns generated by the insurer. This process assured a return of 8 percent, as a subsidy on an annual basis.
The first old age pension scheme of Varishtha Pension Bima Yojana was introduced by the government in July 2003 and the withdrawn in August 2004. The scheme was offered with an effective yield of 9% per annum on the investment. Later, the scheme was again launched in August, 2014 to August, 2015.
The complete information about the Varishtha Pension Bima Yojana 2017 would be available once the scheme is launched.