PMVVY: Govt. backed LIC’s Pension Scheme to Secure Old Age Interest Income (60 or Above)

Govt. backed LIC’s Pension Scheme for The Elderly – Pradhan Mantri Vaya Vandana Yojana (PMVVY): Assured Return of 8% p.a. to Secure Income during Old Age (60 or Above)

Govt. has launched a pension scheme for 8% secured income of elderly people (i.e. during old age of 60 or above) named as the ‘Pradhan Mantri Vaya Vandana Yojana (PMVVY)’, as a social security to protect their interest income from uncertain market conditions.

The scheme enables old age income security for senior citizens through provision of assured pension/ return linked to the subscription amount based on government guarantee to Life Insurance Corporation of India (LIC).

The scheme provides an assured return of 8% per annum payable monthly for 10 years. The differential return, i.e. the difference between return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual basis. The scheme is open for subscription till 3rd May 2018.

Pension is payable at the end of each period during the policy tenure of 10 years as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the subscriber at the time of purchase. Minimum purchase price under the scheme is Rs.1,50,000/- for a minimum pension of Rs. 1,000/- per month and the maximum purchase price is Rs.7,50,000/- for a maximum pension of Rs.5,000/- per month. The scheme is exempted from Goods and Services Tax.

For further details, about the Scheme, please refer the link below:

LIC’s Pradhan Mantri Vaya Vandana Yojana (PMVVY)

2 Comments

  1. Shankara Chary D Aug 9, 2017
    • Ashwani Mehta Aug 9, 2017

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