Finance Minister Arun Jaitley will start the Pradhan Mantri Vaya Vandana Yojana PMVVY pension scheme for the elderly on July 21. Under this, their savings will get fixed interest at the rate of eight percent. In a statement Thursday, the Finance Ministry said that the responsibility of running this scheme has been given to the Life Insurance Corporation of India. This product can be purchased offline along with online.
PMVVY: Pradhan Mantri Vaya Vandana Yojana :
This is a pension scheme. The government has specifically designed this scheme for the elderly of 60 years and above. It will be available till May 3, 2018. According to the statement, “Eight percent annually for 10 years under the scheme: effectively it will be equal to 8.30 percent: fixed interest”. Pensions during the ten year period, according to the option chosen during the purchase of pensioners monthly , Quarter, half yearly, yearly.
The scheme is exempted from the goods and services tax: GST. After three years of getting the pension, it will be allowed to borrow up to 75 percent of the purchase price to meet the cash requirements. According to the statement, interest on the loan will be collected from the pension payment and the loan claim amount.
The plan will allow the premature exodus of either of your or her spouse in the event of serious illness. In such a situation, 98 percent of the purchase price will be refunded. In the event of death of the pensioner’s policy, the purchase price will be given to the beneficiaries.
Government will pay the cost associated with interest and real interest and the cost associated with administrative expenses to the LIC as a subsidy. Explain that the Central Government is keeping many schemes in mind in the interest of the age group of the society. The scheme launched on July 21 is part of the same scheme.
What is in the Pradhan Mantri Vaya Vandana Yojana (PMVVY) ? :
Pradhan Mantri Vaya Vandana Yojana is like the Varisth Pension Bima Yojana (VPBY) (2014) which was launched in the year 2014-15. This scheme was first launched during the Union Budget 2003-04 (the tenure of Atal Bihari Vajpayee).
On a one-time premium payment of 2.66 lakh, you will get a lifetime monthly pension of Rs 2,000 and it will get a 9% Assured return.
Varisth Pension Bima Yojana (VPBY) was relaunched during the year 2014-15 and those who were 60 years old were eligible to invest in this pension scheme. Under the scheme, giving a lump sum of Rs 666665 was a provision to give pension of Rs 5000 on a monthly basis.
Key Features of Pradhan Mantri Vaya Vandana Yojana (PMVVY) :
• Indian citizens who are above 60 years of age are eligible to invest in the Pradhan Mantri Vaya Vandana Yojana (PMVVY).
• This plan is open to all for subscription until 3 May 2018.
• By paying a one-time premium of Rs 1,44,578, you are entitled to a monthly pension of Rs 1000 for the next 10 years.
• On the one-time premium of Rs 7,22,892, you are entitled to a monthly pension of Rs 5000.
Premium and Pension details of the Pradhan Mantri Vaya Vandana Yojana (PMVVY):
• The maximum limit for this pension is for the whole family. That is, the total amount of pension released to any family under PMVVA policy will not exceed the maximum pension limit. Under this scheme, the pensioner, his spouse and dependents will be included in the family.
• The term of this policy is for a maximum of 10 years.
• Policyholder (insured) can select it on monthly, quarter, half yearly and yearly basis.
• Assured return is 8 percent.
• If for any reason the policyholder dies, the premium paid (purchase price) will be refunded to the nominee / legal heir of the pensioner.
• The pension income coming in the hands of the pensioner will be taxable. Tax rate will depend on its income tax slab.
• Life Insurance Corporation (LIC) will be the Ex Administrator for the Pradhan Mantri Vaya Vandana Yojana (PMVVY).
• Pension payments will be done through ECS and NEFT.
• This plan has been added to the ‘service tax’ exemption list.
Benefits of the Pradhan Mantri Vaya Vandana Yojana :
Pension Payment :
Pensioners will get pension during the policy term. For example, if you choose monthly pension mode after the one-month policy date, you will start receiving pension from next month.
Under the scheme Death Benefit :
On the death of the pensioner during the policy term (10 years), the nominee will be returned the purchase prize.
Maturity Benefit :
The purchase price of the pension and final installment will be paid to the pensioner for the passing of the pensioner till the end of the policy term.