The Life Insurance Corporation of India (LIC) on Monday introduced the revised Pradhan Mantri Vaya Vandan Yojana (PMVVY). The Central Government provides grants for this pension scheme. The revised plan will be available for purchase from Tuesday. The Central Government has amended the scheme to change the rates for people aged 60 years or more. LIC has the monopoly to run this scheme. Explain that the government has extended the period of Pradhan Mantri Vaya Vandana Yojana (PMVVY) related to social security of senior citizens for another three years. Also, the annual rate of return was reduced to 7.4 percent. The interest rate was 8 percent in the last financial year.
LIC said in a statement that the revised plan will be available for purchase for three financial years from Tuesday till March 2023. The company said that it can be purchased offline as well as online from its website. The maturity of the scheme is 10 years. In this, a guaranteed return of 7.40 percent will be given in the first year.
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According to an official release, the Union Cabinet extended PMVVY from 31 March 2020 to the next three years i.e. 31 March 2023. Also, a fixed return rate of 7.40 percent has been fixed for 2020-21 and the rate will be reviewed every year thereafter. The government had extended the plan period to March 2020 with a fixed return of 8 per cent in the budget for FY 2018-19. Also, the investment limit was doubled to 1.5 million.
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According to the release, according to the revised rate of return of Senior Citizen Savings Scheme (SCSS), the system of annual adjustment in the rate of return with effect from April 1, has been approved. Currently, its maximum limit has been kept at 7.75 percent, but if the limit is broken, the returns in this scheme can be reviewed at any time. Life Insurance Corporation of India is implementing this scheme with fixed income security of senior citizens.
Guaranteed minimum pension
The objective of this scheme is to provide guaranteed minimum pension to senior citizens (60 years and above) based on the fixed return on the purchase price. The government’s financial accountability is limited to shortfall between market returns earned by LIC on the investment amount and a 7.4 percent return (guaranteed return). This arrangement is for 2020-21 and after that the interest rate on this scheme will be fixed every year according to the Senior Citizen Savings Scheme (SCSS).
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The first year’s expenditure on the management of the scheme has been fixed at 0.5 percent of the investment amount. The expenditure for the next nine years from the second year has been fixed at 0.3 percent per annum. According to the release, “The financial liability on this can range from Rs. 829 crores in FY 2023-24 to Rs. 264 crores in the last financial year 2032-33. Rs. 614 crores of subsidy reimbursement for annual payments on real basis. Is expected to happen. However the actual interest differential (subsidy) will depend on the actual basis of the conditions in the number of newly issued policies. The plan was announced in the budget for FY 2017-18. Pension can be taken monthly, quarterly, half-yearly or annually under this ten-year plan.
This is helpline number
For more information about Pradhan Mantri Vaya Vandana Yojana, you can call 022-67819281 or 022-67819290. Apart from this, the benefits of the scheme can also be understood through the toll free number – 1800-227-717 and email onlinedmc@licindia.com. Apart from this, you can understand about the scheme in detail by visiting the link https://eterm.licindia.in/onlinePlansIndex/pmvvymain.do.