The Government of India has approved the launch of Varishtha Pension Bima Yojana 2017 (VPBY 2017). The proposed scheme is part of government's efforts towards financial inclusion and social security. The scheme is aimed at providing social security at the age of 60 years and above. The Government haws guaranteed 8 percent return under the scheme. Following are the features of Varishtha Pension Bima Yojana 2017:
The Varishtha Pension Bima Yojana 2017 Scheme will be implemented through Life Insurance Corporation of India (LIC) for the current financial year i.e. FY 2016-17. The scheme will be open for subscriptions for a period of one year from the date of launch.
Features of Varishtha Pension Bima Yojana 2017 Scheme:
1) The purpose of the scheme is to provide security to the investments made by senior citizens. The scheme is meant for old age and protect elderly persons aged 60 years and above and offer security against future fall in their interest income due to uncertain market conditions.
2) Varishtha Pension Bima Yojana 2017 will provide an assured pension based on a guaranteed rate of return of 8 percent per annum for ten years. The investor can opt for pension on a monthly, quarterly, half yearly and annual basis.
3) The Government of India will bear the differential return i.e., the difference between the return generated by LIC (the implementation agency) and the assured return of 8 percent per annum as subsidy on an annual basis.