Aim: To give an assured minimum pension to Senior Citizens
Scheme:
- It is a pension scheme
- It intends to give an assured minimum pension to Senior Citizens based on an assured minimum return on the subscription amount.
- The pension is envisaged until death from the date of subscription, with payback of the subscription amount on death of the subscriber to the nominee.
- VPBY was opened for subscription in 2003 and 2014
- It is now closed for future subscriptions
- Implemented by LIC
VPBY 2017
- The scheme will be implemented through Life Insurance Corporation of India (LIC) during the current financial year i.e. FY 2016-17.
- It will be open for subscription for a period of one year from the date of launch.
- The purpose of the scheme is to provide social security during old age and protect elderly persons aged 60 years and above against future fall in their interest income due to uncertain market conditions.
- It will provide an assured pension based on a guaranteed rate of return of 8% per annum for ten years, with an option to opt for pension on a monthly, quarterly, half yearly and annual basis.
- The Union Government will bear the differential return i.e., the difference between the return generated by LIC and the assured return of 8% per annum as subsidy on an annual basis