Union Finance Minister Arun Jaitley on 21 July 2017 formally launched the Pradhan Mantri Vaya Vandana Yojana (PMVVY).
PMVVY is a pension scheme announced by the Union Government exclusively for the senior citizens aged 60 years and above. The scheme is available from 4 May 2017 to 3 May 2018.
Highlights of the Pradhan Mantri Vaya Vandana Yojana
• The Scheme can be purchased offline as well as online through Life Insurance Corporation of India which has been given the sole privilege to operate this scheme.
• The scheme provides an assured return of 8 per cent per annum and is payable monthly for 10 years.
• The pension is payable at the end of each period during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner.
• The scheme is exempted from Service Tax or GST.
• In case of the survival of the pensioner till the end of the policy term of 10 years, the purchase price along with final pension instalment will be payable.
• Loan up to 75 per cent of Purchase Price will be allowed after 3 policy years to meet the liquidity needs. Loan interest will be recovered from the pension instalments and claim proceeds.
• It allows for premature exit for the treatment of any critical illness of self or spouse.
• On premature exit due to medical emergency, 98 per cent of the Purchase Price will be refunded.
• In case of the death of the pensioner during the policy term of 10 years, the Purchase Price will be paid to the beneficiary.
• In case of suicide, there will be no exclusion and full Purchase Price will be payable.
• The ceiling of maximum pension is for a family as a whole. The family will comprise of pensioner, his/her spouse and dependants.
Minimum and Maximum Purchase Price and Pension Amount
| Mode of Pension | Minimum Purchase Price | Maximum Purchase Price |
Minimum Pension amount | Maximum Pension amount |
| Yearly | Rs 144578 | Rs 722892 | Rs 12000 | Rs 60000 |
| Half-yearly | Rs 147601 | Rs 738007 | Rs 6000 | Rs 30000 |
| Quarterly | Rs 149068 | Rs 745342 | Rs 3000 | Rs 15000 |
| Monthly | Rs 150000 | Rs 750000 | Rs 1000 | Rs 5000 |
The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration will be subsidized by the Union Government and will be reimbursed to the Corporation.
Quick Digest
When: 21 July 2017
