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Monday, May 25, 2020

Pradhan Mantri Vyay Vandana Yojana (PMVVY) 2020

Pradhan Mantri Vyay Vandana Yojana (PMVVY) 2020



Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme announced by the Government of India exclusively for the senior citizens aged 60 years and above which was available from 4th May, 2017 to 31st March, 2020. The scheme is now extended up to 31st March, 2023 for a further period of three years beyond 31st March, 2020.




Pradhan Mantri Vaya Vandana Yojana(PMVVY) Based on the success and popularity of Varishtha Pension Bima Yojana 2003 (VPBY-2003), Varishtha Pension Bima Yojana 2014 (VPBY-2014) schemes, and to protect elderly persons aged 60 years and above against a future fall in their interest income due to the uncertain market conditions, as also to provide social security during old age, it is decided to launch a simplified scheme of assured pension of 8% called the being implemented through Life Insurance Corporation (LIC) of India. As per the scheme, on payment of an initial lump sum amount ranging from a minimum purchase price of Rs. 1, 50,000/- for a minimum pension of Rs 1000/- per month to a maximum purchase price of Rs. 7, 50,000/- for maximum pension of Rs. 5,000/- per month, subscribers will get an assured pension based on a guaranteed rate of return of 8% per annum, payable monthly.


Government of India in the Budget Speech of 2018-19 has announced the enhancement of maximum limit under Pradhan Mantri Vaya Vandana Yojana to Rs. 15 lakhs per senior citizen. The period of sale for this scheme has also been extended upto 31st March, 2020.


LIC of India has been given the sole privilege to operate this scheme.


This scheme can be purchased offline as well as online. To Purchase this scheme online please log on to our website www.licindia.in.


2. Benefits :


a. Pension Payment :


On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable.


b. Death Benefit:


On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary.


c. Maturity Benefit:


On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.


3. Eligibility Conditions and Other Restrictions:


a) Minimum Entry Age: 60 years (completed)


b) Maximum Entry Age: No limit


c) Policy Term : 10 years


d) Minimum Pension: Rs. 1,000/- per month


Rs. 3,000/- per quarter


Rs.6,000/- per half-year


Rs.12,000/- per year


e) Maximum Pension: Rs. 10,000/-per month


Rs. 30,000/-per quarter


Rs. 60,000/- per half-year


Rs. 1,20,000/- per year


Ceiling of maximum pension is per senior citizen i.e. total amount of pension under all the policies under this plan, including policies taken under Pradhan Mantri Vaya bandana.


4. Payment of Purchase Price:


The scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.


The minimum and maximum Purchase Price under different modes of pension will be as under: Mode of Pension Minimum Purchase Price Maximum Purchase Price


Yearly Rs. 1,44,578/- Rs. 14,45,783/-


Half-yearly Rs. 1,47,601/- Rs. 14,76,015/-


Quarterly Rs. 1,49,068/- Rs. 14,90,683/-


Monthly Rs. 1,50,000/- Rs. 15,00,000/-


The Purchase Price to be charged shall be rounded to nearest rupee.


5. Mode of pension payment:


The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.


The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.


6. Sample Pension rates per Rs.1000/- Purchase Price


The pension rates for Rs.1000/- Purchase Price for different modes of pension payments are as below:


Yearly: Rs. 83.00 p.a.


Half-yearly: Rs. 81.30 p.a.


Quarterly: Rs. 80.50 p.a.


Monthly: Rs. 80.00 p.a.


The pension instalment shall be rounded off to the nearest rupee.


These rates are age independent.


7. Surrender Value:


The scheme allows premature exit during the policy term under exceptional circumstances


like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of Purchase Price.


8. Loan:


Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.


The rate of interest to be charged for loan amount shall be determined at periodic intervals. For the loan sanctioned till 30th April, 2018, the applicable interest rate is 10% p.a. payable half-yearly for the entire term of the loan.


Loan interest will be recovered from pension amount payable under the policy. The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension. However, the loan outstanding shall be recovered from the
claim proceeds at the time of exit.


9. Taxes:


Statutory Taxes, if any, imposed on this Plan by the Government of India or any other constitutional tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.


The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.


10. Free Look period:


If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason of objections.


The amount to be refunded within free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.


11. Exclusion:


Suicide: There shall be no exclusion on count of suicide and full Purchase Price shall be payable.


How to apply


You have to fill up a form to avail of this scheme of Central Government. It is necessary to attach the required documents with this form. Senior citizens can also invest in the scheme online.


No more than 10,000 pensions per family:


According to the website of LIC, the administrator of the scheme, the maximum pension limit applies not to a pensioner but to his entire family. This means that as many people from one family will get a pension under Pradhan Mantri Vyay Vandana Yojana.


News Report Gujarati: Click hare





The total amount of pension received by each of them should not exceed Rs. 10,000. The family of the pensioner includes the wife and their dependents in addition to the pensioner.

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