The Varishtha Pension Bima Yojana 2017, a pension scheme for senior citizens, was approved by the Union Cabinet in a meeting chaired by the Prime Minister Narendra Modi.
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.
- Option to opt for 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 subsidy on an annual basis.
- Varishtha Pension Bima Yojana 2017 will be open for subscription for a period of one year from the date of launch.
- The government’s statement on Varishtha Pension Bima Yojana 2017 does not mention the maximum amount that can be invested under the scheme.
- Since Varishtha Pension Bima Yojana is a pension plan from the central government, the investment carries very little risk.
- It is a part of government’s social security and financial inclusion program.
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