The Pradhan Mantri Vaya Vandana Yojana (PMVVY) the government-backed pension scheme offered by LIC for senior citizens, has now been extended to 31 March 2023. It was earlier open till 31 March 2020 only.
In a tweet, K.S. Dhatwalia, Principal Director General of the Press Information Bureau said, “#Cabinet approves extension of ‘Pradhan Mantri Vaya Vandana Yojana’ (#PMVVY) up to 31st March, 2023 for further period of three years beyond 31st March, 2020; This to enable old age income security and welfare of Senior Citizens.”
What is Pradhan Mantri Vaya Vandana Yojana?
The Indian government’s PMVVY is a pension scheme that offers up to 8.5 percent returns. It offers guaranteed pension payout at a specified rate for a period of 10 years. It also provides a death benefit to the nominee in the form of a return of purchase price.
Benefits of PMVVY
- Pension in arrears (at the end of each period as per mode chosen) shall be payable to the pensioner during the policy term of 10 years.
- On the death of the pensioner during the policy term of 10 years, the “Purchase Price” shall be refunded to the beneficiary.
- On maturity, the surviving pensioner will receive purchase price along with final pension installment at the end of 10 years.
- Premature exit is allowed during the policy term under exceptional circumstances like the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98 percent of “Purchase Price”.
- On completion of 3 years of the policy, the pensioner can avail a loan against the policy for up to 75 percent of the “Purchase Price.” Loan interest will be recovered from the pension payment.
Minimum entry age is 60 years. There is no maximum limit.
There are no tax benefits like those given to other popular government-backed schemes.
How to apply for PM Vaya Vandana Yojana?
LIC of India is the sole operator of this scheme. One can apply for the PM Vaya Vandana Yojana scheme online on licindia.in with copies of PAN, address proof (aadhaar or passport) and the first page of bank passbook/cheque leaf of the account to which the pension would be credited.