The government has planned to announce a new pension plan under the budget 2018-2019 for senior citizens. The new plan to be announced by the government is named PM’s Vaja Vandana Yojana Pension Plan.
PMVVY is a Pension Scheme announced by the government exclusively for the senior citizens aged 60 years and above and will be available from 4th May 2017 to 3rd May 2018. This scheme can be purchased online through Life Insurance Corporation of India which has been given the sole privilege to operate the scheme. This scheme can be purchased offline as well as online. To purchase this scheme online you can log on to the website www.licindia.com
Benefits of the scheme
- Pension Payment – on the survival of the pensioner during the policy term of 10 years, the pension at the end of each period as per the mode was chosen shall be payable.
- Death Payment – on the death of the pensioner during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary.
- Maturity Benefit – on the survival of the pensioner to the end of the policy term of 10 years, Purchase price along with the final pension installment shall be payable.
Eligibility Conditions and other Restrictions
- Minimum entry age – 60 years
- Maximum entry age – no limit
- Policy term – 10 years
- Minimum Pension
- Rs 1000 per month
- Rs 3000 per quarter
- Rs 6000 per half year
- Rs 12000 per year
- Maximum pension
- Rs 5000 per month
- Rs 15000 per quarter
- Rs 30000 per half year
- Rs 60000 per year
Payment of Purchase Price
The scheme can be purchased by payment of a lump sum purchase price. The pensioner has an option to choose either the amount of pension or the purchase price.
Mode of Pension Payment
The mode of the pension payment is monthly, quarterly, half yearly and yearly. The pension payment shall be through NEFT (national exchange fund transfer) or Aadhaar Enabled Payment System. the first installment of the pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment.
With the scheme PMVVY, it is sure that you are entitled to gain 8% on maturity. So if you are looking forward to guaranteed income then PMVVY is the right pension plan for all the senior citizens
