Govt of India on 24/01/2017 approved the launch of Varishtha Pension Bima Yojana 2017 for seniorÂ citizens aged over 60. Like previously launched VarishthaÂ pension bima yojana this scheme provide pension to senior citizens with a rate higher than the prevailing market rates of the annuity. Varishtha Pension Bima Yojana will provide 8% guaranteed return to the annuitant for 10 years as part of government’s financial inclusion program and social security schemes.
VPBY-2017 is proposed to be open for subscription for a period of one year from the date of launch.
The Union Cabinet chaired by Prime Minister Narendra Modi gave its post-facto approval for the launching of Varishtha Pension Bima Yojana 2017 (VPBY 2017).
“The scheme will provide an assured pension based on a guaranteed rate of return of 8 per cent per annum for ten years, with an option to opt for a pension on a monthly/ quarterly/half-yearly and annual basis,”
The scheme will be implemented through Life Insurance Corporation of India (LIC) during the current financial year to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.
The scheme will provide an assured pension based on a guaranteed rate of return of 8% per annum for ten years, with an option to opt for the pension on a monthly/quarterly/half-yearly and annual basis. The differential return, i.e., the difference between the return generated by LIC and the assured return of 8% per annum would be borne by Government of India as
The government’s statement on Varishtha Pension Bima Yojana 2017 does not mention the maximum amount that can be invested under the scheme and may be announced later with all the details. In the Varishtha Pension Bima Yojana launched earlier have the ceiling of Rs. 666665 that can be invested in the scheme.