Pradhan Mantri Vaya Vandana Yojana PMVVY Pension Scheme

June 17, 2017 | By Jagjit Singh | Filed in: Centre, Government Schemes, Yojana.

The government has planned to launch a new scheme with a new pension plan under the budget of 2018-2019 for senior citizens. This new scheme was announced under the name of PM’s Vaja Vandana Yojana Pension Plan (PMVVY). Under the new plan, the government will offer 8 percent to senior citizens for their invested amount.


Benefits under the scheme

  • The beneficiaries will be getting a fixed amount depending on the plan selected from monthly to annually.
  • In case if the pensioners die before claiming the maturity amount then the legal nominee will be entitled to claim the pension amount as per the plan.
  • If the pensioner is alive at the time of the maturity then it is certain that he/she can claim the entire policy purchased amount. Under the case, the last pension amount installment can also be claimed.

Highlights of the PMVVY

  • The pensioner would receive the pension at the end of each time period (monthly/quarterly/half-yearly and yearly) chosen during policy purchase.
  • The pension would be transferred to the pensioner’s bank account through NEFT or AEPS (Aadhaar Enabled Payment System).
  • If the pensioner dies during the policy term of 10 years, the purchase price would be refunded to the nominee of the beneficiary.
  • Minimum age of entry in PMVVY is 60 years, there is no maximum age limit.
  • There are a minimum and maximum amount which can be invested under the scheme.
  • Minimum pension under the scheme is INR. 1000 which maximum is INR. 5000 per month.
  • Upon premature exit, 98% of the invested amount would be provided to the policyholder. However, it is allowed only under exceptional circumstances like critical/terminal illness of self or spouse.
  • After completion of 3 years of policy, loan facility would be provided to the pensioner under which loan amount would be maximum 75% of the invested amount.
  • The policy can be purchased by paying a lump sum amount.
  • No medical examination is required to buy the PMVVY policy.

Objectives of the scheme

  • The government aims to offer pensioners with 8 percent returns on maturity for a period of ten years.
  • The scheme is much better as compared to the MF and FD as here you get a fixed amount as compared to the interest rates that can change over a period of time.
  • To achieve a level where the price of purchase does not change according to changing age.

Pension Options under PMVVY

Mode of Pension Minimum Purchase Price Corresponding Pension Amount
Yearly 1,44,578 12,000 per annum
Half-Yearly 1,47,601 6,000 Half year
Quarterly 1,49,068 3,000 per Qtr.
Monthly 1,50,000 1,000 per month


Mode of Pension Maximum Purchase Price (INR.) Corresponding Pension Amount
Yearly 7,22,892 60,000 per annum
Half-Yearly 7,38,007 30,000 per half year
Quarterly 7,45,342 15,000 per Qtr.
Monthly 7,50,000 5,000 per month


Pension Rates

Pension rates payable under different modes of payment (Yearly, Half Yearly, Quarterly, and Monthly) are as under:

Mode of Pension Effective Pension Rate per annum for INR. 1000/- purchase price
Yearly 83.00 p.a
Half-Yearly 81.30 p.a
Quarterly 80.50 p.a
Monthly 80.00 p.a

NOTE (the Yojana will be administered by the LIC of India Co.)


The scheme certainly depends on one’s personal point of view to invest or not in the PMVVY pension plan. In General, most people avoid taking the risk. With all the other scheme’s it is certain that the interest rates may vary over a period of time.

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