7/21/2017 Govt's new pension scheme for elderly : All you need to know - Times of India

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Govt's new pension scheme for elderly : All you need to

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TIMESOFINDIA.COM | Jul 21, 2017, 07.04 PM IST

The government on Friday launched a pension scheme for senior citizens

that promises an assured return of 8 per cent. Finance Minister Arun
Jaitley launched the Pradhan Mantri Vaya Vandana Yojana (PMVVY), which
was announced in the 2017-18 Union Budget.

Follow

FM
@arunjaitley
at
launch
of
Pradhan
Mantri
Vyay
Vandana
Yojana
(PMVVY)
in
North
Block
in
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7/21/2017 Govt's new pension scheme for elderly : All you need to know - Times of India

Delhi
today.
PMVVY
is
exclusivly
for Sr
citizens.
6:37
PM -
21 Jul
2017

30

67

Ministry of Finance Follow

@FinMinIndia

Speaking after formal launching of PMVVY,FM @arunjaitley said

that settlement ratio of LIC is near to the maximum.
6:48 PM - 21 Jul 2017

16 45

Here is all you need to know about the scheme:

The scheme is open to people aged 60 years and above.

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7/21/2017 Govt's new pension scheme for elderly : All you need to know - Times of India

It can be purchased oine as well as online through the state-run Life Insurance Corporation (LIC) of India, which has
been given the mandate to operate the scheme.

The plan provides an annual assured return of 8 per cent payable monthly (equivalent to an annual eective rate of 8.30
per cent) for 10 years.

During the policy term of 10 years, the pension will be payable at the end of each period, depending on the frequency
monthly, quarterly, half-yearly, or yearly chosen by the pensioner at the time of the purchase.

If the pensioner lives to the end of the policy term of 10 years, the purchase price, along with the nal pension instalment,
will be paid.

One can avail of a loan up to 75% of the purchase price after 3 years of the policy. Interest on the loan will be recovered
from the pension instalments, and the loan from the claim proceeds.

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7/21/2017 Govt's new pension scheme for elderly : All you need to know - Times of India

The scheme allows for premature exit for the treatment of any critical, terminal illness of the pensioner or spouse. On such
premature exit, 98% of the purchase price will be refunded.

On death of the pensioner during the policy term, the purchase price shall be paid to the beneciary. The ceiling for
maximum pension is for a family as a whole, with the family comprising the pensioner, his or her spouse, and dependants.

The scheme is exempt from the Goods & Services Tax (GST)

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