The Cabinet has approved the Varishtha Pension Yojana 2017 which is basically a pension scheme and under this, the senior citizens will get more benefits. The scheme aims to provide a guaranteed minimum interest rate to senior citizens. This scheme was launched by the Prime Minister on New Year Eve 2017 and now it has got approval from the cabinet. Let us have a look at the details and benefits of Varishtha Pension Bima Yojana.
Via Features of Varishtha Pension Bima Yojana 2017
- LIC (Life Insurance Corporation of India ) will implement the Old Age Pension Scheme for current financial year, but the exact launch of VPBY 2017 has not been declared yet.
- The scheme will be open for the subscription period of one year after the launch.
- The scheme will provide income security to old people aged 60 years and above against uncertain market falls which is a very important initiative.
- VPBY will provide a guaranteed pension based on a guaranteed interest rate of 8% for 10 years. This makes it constant and feasible in terms of time and money both.
- There will be a number of options being provided under the scheme like monthly/quarterly/half-yearly or annual basis benefits so that the beneficiary can choose any of the options under Varishtha Pension Bima Yojana 2017.
- As far as the budget is concerned, up to Rs. 7.5 lakh could be invested in Old Age Pension Scheme as mentioned by the PM in his New Year Eve speech even when the maximum amount of deposit under Varishtha Pension Bima Yojana 2017 has not been mentioned.
Varishtha Pension Bima Yojana 2017: How it Works?
- The government would pay the differential returns of VPBY 2017 to LIC and this process of distributing returns is quite different from the one that includes returns generated by the insurer. This process guaranteed a return of 8 percent, as a subsidy on an annual basis.
- The first old age pension scheme of Varishtha Pension Bima Yojana was initiated by the government in July 2003 and withdrawn in August 2004. The scheme was presented with an effective yield of 9% per annum on the investment. Later, the scheme was again launched in August 2014 to August 2015.
- The complete information about the Varishtha Pension Bima Yojana 2017 would be available once the scheme is launched.
Conclusion
Varishtha Pension Beema Yojana is a pension scheme for senior citizens providing minimum interest rates and maximum benefits. It is different from the other schemes because of the benefits offered under it. We need to make proper arrangements for the senior citizens financially and provide them ease and flexibility so this scheme does the same. These schemes have a practical vision with a proper plan so now all it requires is a good implementation. The procedure is very simple if all the points under eligibility criteria are kept in mind. We hope that the scheme works the way it is planned and eligible people avail maximum benefits.