Pradhan Mantri Vaya Vandana Yojana (PMVVY), a New pension scheme exclusively for senior citizens aged 60 years and above.
The PMVVY, which is available from May 4, 2017 to May 3, 2018, can be purchased offline as well as online through Life Insurance Corporation of India.
Benefits of Senior Citizens New Pension Scheme
| Assured Return rate | 8.00% |
| Purchased Online From | LIC (Life Insurance Corporation of India) |
| Exempt | Service tax/GST |
| Policy Term | 10 Years |
| Time of Pension Payable | Monthly, Quarterly, Half-yearly or Yearly |
| Loan Facility | Yes, up to 75 per cent of the purchase price |
| Loan Repayment Period | Up to 3 Years |
| Death Benefit | purchase price will be paid, if death between 10 years term period. |
PMVVY Eligibility Conditions and Other Restrictions:
Minimum Entry Age: 60 years (completed)
Maximum Entry Age: No limit
Policy Term : 10 years
|
Slab |
Minimum Pension |
Maximum Pension |
| Monthly | 1000 | 5000 |
| Quarterly | 3000 | 15000 |
| Half Yearly | 6000 | 30000 |
| Yearly | 12000 | 60000 |
Benefits of PMVVY Pension Scheme
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.
Death Benefit:
On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to beneficiary.
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.
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. 7,22,892/- |
| Half-yearly | Rs. 1,47,601/- | Rs. 7,38,007/- |
| Quarterly | Rs. 1,49,068/- | Rs. 7,45,342/- |
| Monthly | Rs. 1,50,000/- | Rs. 7,50,000/- |
The Purchase Price to be charged shall be rounded to nearest rupee.
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.
IRDA clarifies to public that
- IRDA or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest premiums.
- IRDA does not announce any bonus.
