Senior citizen pension scheme: 10 things to know
about Pradhan Mantri Vaya Vandana Yojana
Senior citizen pension scheme in India: 10 things to know about Pradhan Mantri Vaya Vandana Yojana:
1. The Pradhan Mantri Vaya Vandana Yojana is a pension scheme announced by the Government of India exclusively for senior citizens. It will be available from 4th May, 2017 to 3rd May, 2018.
2. One can subscribe to the PMVVY Pension Scheme offline as well as online through the Life Insurance Corporation of India.
3. PMVVY Pension Scheme provides an assured return of 8% p.a. payable monthly (equivalent to 8.30% p.a. effective) for 10 years.
4. Pension is payable at the end of each period, during policy term of 10 years, on monthly/ quarterly/ half-yearly/ yearly basis as chosen by the pensioner.
5. Death Benefit: On the death of the pensioner during the policy term of 10 years, the purchase price shall be refunded to the beneficiary.
6. 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.
7. Eligibility Conditions and Other Restrictions:
Minimum Entry Age: 60 years (completed)
Maximum Entry Age: No limit
Policy Term: 10 years
Minimum Pension: Rs 1,000 per month
Rs 3,000 per quarter
Rs 6,000 per half year
Rs12,000 per annum
Maximum Pension: Rs 5,000 per month
Rs 15,000 per quarter
Rs 30,000 per half year
Rs 60,000 per annum
8. 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/-
9. 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 in Financial Year 2016-17, 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.
10. 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. more
Senior citizen pension scheme in India: 10 things to know about Pradhan Mantri Vaya Vandana Yojana:
1. The Pradhan Mantri Vaya Vandana Yojana is a pension scheme announced by the Government of India exclusively for senior citizens. It will be available from 4th May, 2017 to 3rd May, 2018.
2. One can subscribe to the PMVVY Pension Scheme offline as well as online through the Life Insurance Corporation of India.
3. PMVVY Pension Scheme provides an assured return of 8% p.a. payable monthly (equivalent to 8.30% p.a. effective) for 10 years.
4. Pension is payable at the end of each period, during policy term of 10 years, on monthly/ quarterly/ half-yearly/ yearly basis as chosen by the pensioner.
5. Death Benefit: On the death of the pensioner during the policy term of 10 years, the purchase price shall be refunded to the beneficiary.
6. 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.
7. Eligibility Conditions and Other Restrictions:
Minimum Entry Age: 60 years (completed)
Maximum Entry Age: No limit
Policy Term: 10 years
Minimum Pension: Rs 1,000 per month
Rs 3,000 per quarter
Rs 6,000 per half year
Rs12,000 per annum
Maximum Pension: Rs 5,000 per month
Rs 15,000 per quarter
Rs 30,000 per half year
Rs 60,000 per annum
8. 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/-
9. 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 in Financial Year 2016-17, 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.
10. 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. more
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Clarification required whether parents of senior citizens are eligible to invest in this scheme? more
Jul 24
Given Below a Copy-Paste from licindia.in It can be seen that total investment for a family (husband and wife and dependents) shall not be more than 7.5 lakh, (not 7.5+7.5 lakh). Policy Term : 10 years Minimum Pension: Rs. 1,000/- per month Rs. 3,000/- per quarter Rs.6,000/- per half-year Rs.12,000/- per year Maximum Pension: Rs. 5,000/- per month Rs. 15,000/- per quarter Rs. 30,000/- per half-year Rs. 60,000/- per year Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all the policies allowed to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependants. 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. more
Jul 24
If the Pension of he Government servant is more than Rs 5,000/- p.m. does his wife can apply for this scheme. more
Jul 27
(1) Does it mean that if we pay a one time amount of Rs. 7,50,000/- to start the pension scheme, we can get Rs. 5000/- per month as pension for 10 years. In addition to this, Rs. 7,50,000/- will be paid at the end of the term of 10 years.
(2) If husband is getting government pension, can wife apply for this pension scheme? more
(2) If husband is getting government pension, can wife apply for this pension scheme? more
Jul 25
Why this scheme is valid for only one year? If it has to help senior citizens, it should be only on the basis of age only, without any time bar. Also, confirm whether it is renewable after 10 years, if the senior citizen is alive? more
Jul 24
It on an experimental basis to counter the criticism of the market determined interest policy of the Government. It would be reviewed depending on the response. more
Jul 24
This scheme is only for 1year, people who turn 60 years next year or so doesn't have this scheme. A senior citizen scheme guranteed interest rate should be based on age and not on time based...... If the intention is true then government should remove the one year subscription period and make it permanent based on age to give some social security for seniors..... more
Jul 24
I have just completed the online process and paid the money also online. It takes about 10 minutes. You have to have your Aadhar number, and bank account details including IFSC code. Since I am an income tax payer, issue of TDS is of no consequence to me. I find that husband and wife can together contribute 7.5 lakh. more
Jul 24
Only one deposit upto 7.5 Lakhs per family is allowed which could be either husband or wife or both. Two seperate deposits of 7.5 lakhs is not permissible. more
Jul 24
Thanks Sharma just for posting it.You haven't written whether you get FDR or Insurance policy or any other document after your online payment. The money will be credited into one account or two accounts. Please write whatever information is available. more
Jul 24
