Pradhan Mantri Vaya Vandana Yojana (PMVVY), a pension scheme exclusively for senior citizens, has been launched.
• The Scheme can be purchased offline as well as online through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this Scheme.
• ‘Pradhan Mantri Vaya Vandana Yojana (PMVVY)’ to provide social security during old age and to protect elderly persons aged 60 and above against a future fall in their interest income due to uncertain market conditions.
• The scheme enables old age income security for senior citizens through provision of assured pension/return linked to the subscription amount based on government guarantee to Life Insurance Corporation of India (LIC).
• The scheme provides an assured return of 8% per annum payable monthly (8.30% per annum for the annual option) for 10 years. The differential return, i.e. the difference between 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. The scheme is open for subscription till 3rd May 2018.
• Pension is payable at the end of each period during the policy tenure of 10 years as per the frequency of monthly/quarterly/half-yearly/yearly as chosen by the subscriber at the time of purchase.
• Minimum purchase price under the scheme is Rs.1,50,000/- for a minimum pension of Rs. 1,000/- per month.
• Maximum purchase price is Rs.7,50,000/- for a maximum pension of Rs.5,000/- per month.
• The scheme is exempted from Goods and Services Tax.
• The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.
• On death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.
• On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension instalments shall be payable.
• 7.5 Lakh is the maximum amount that a family can invest under this scheme. This means ,if two or more people from a family decide to opt for this scheme, their total investment cannot be more than Rs7.5 lakh. The family, for this scheme, comprises the pensioner, his or her spouse and dependants.
• The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependants.
• Loan up-to 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs). Loan interest shall be recovered from the pension instalments and loan to be recovered from claim proceeds.
• Old Series - The Price Reference Year for this series is 2010, whereas Weight Reference Year is 2004-05.
• Revise Series - Though the Weight Reference Year is July 2011 to June 2012 (reference period of NSS 68th Round), Price Reference Year (Base Year) has been chosen to be calendar year 2012.
Price Reference Year - The year in which the average prices, of goods and services consumed, are taken as base price and equated to 100 and accordingly, CPI for Base Year is 100.
Weight Reference Year - The year in respect of which the data of consumer expenditure survey was used to compute weights for aggregating elementary indices to compile higher level indices i.e. sub-group, group and overall indices.
• Under Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation
• The basket of items and their weighing diagrams have been prepared using the Mo...
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