Cabinet extends Pradhan Mantri Vaya Vandana Yojana: Check details of this senior citizen pension scheme


New Delhi: The Union Cabinet on Wednesday authorized extension of Pradhan Mantri Vaya Vandana Yojana (PMVVY) as much as 31st March, 2023 for additional interval of three years past 31st March, 2020.

Consequently, he final date to spend money on PMVVY might be March 31, 2023.

PMVVY is a social safety scheme for senior residents supposed to provide an assured minimal pension to them primarily based on an assured return on the acquisition value / subscription quantity.

The PMVVY scheme, carried out via the Life Insurance Corporation (LIC), is meant to provide an assured minimal pension to senior residents (60 years and above) primarily based on an assured return on the acquisition value/subscription quantity.

The Pradhan Mantri Vaya Vandana Yojana for Senior Citizens has additionally revised the minimal funding to Rs 1,56,658 for pension of Rs 12,000 each year and Rs 1,62,162 for getting a minimal pension quantity of Rs 1000 per thirty days underneath the scheme.

It will initially give an assured charge of return of 7.40 % each year for the yr 2020-21 each year and thereafter to be reset yearly.

Annual reset of assured charge of curiosity with impact from April 1st of monetary yr according to revised charge of returns of Senior Citizens Saving Scheme (SCSS) upto a ceiling of 7.75% with contemporary appraisal of the scheme on breach of this threshold at any level.

The authorities has authorized for expenditure to be incurred on account of the distinction between the market charge of return generated by LIC (web of bills) and the assured charge of return underneath the scheme.

Government has capped Management bills at 0.5% p.a. of funds of the scheme for first yr of scheme in respect of new insurance policies issued and thereafter 0.3% p.a. for second yr onwards for the following 9 years.

Government will delegate the authority to Finance Minister to approve annual reset charge of return firstly of each monetary yr.

The bills on managing the scheme, are capped at 0.5% of belongings underneath administration each year for the primary yr of the scheme and 0.3% p.a. for second yr onwards for the following 9 years. As such the anticipated monetary legal responsibility v/in poor health vary from an estimated expenditure of Rs. 829crore within the monetary yr 2023-24 to Rs. 264crore in final FY 2032-33, an official launch mentioned.

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