Govt. of India

Pradhan Mantri Vaya Vandana Yojana (PMVVY): tax free pension scheme for senior citizens

senior citizens

The Government of India launched Pradhan Mantri Vaya Vandana Yojana (PMVVY) a pension scheme which will provide respectable returns to the senior citizens. Pradhan Mantri Vaya Vandana Yojana is for senior citizens with 60 year of age or more. The scheme is available for enrollment only till 3th May 2018 as it is a one year scheme. It will provide 8% year returns which will be paid monthly for 10 years.

Life Insurance Corporation of India (LIC) is authorized to implement the scheme. The Finance Minister of India Arun Jeitly launched the scheme in May 2017 and so far LIC has already enrolled 58,152 under the PMVVY and collected 2,705 crores in the payment for the scheme.

Highlights of the Pradhan Mantri Vaya Vandana Yojana (PMVVY):

  • A pension scheme launched on 4th May 2017
  • Available for purchase only for a year i.e. till 3rd May 2018
  • Only LIC is authorized to sell the scheme & can be bought online or offline
  • Its a one time payment scheme and no monthly premium payment is required
  • The scheme has 10 year term and from the next year of the purchase of the scheme a monthly pension will be given for next 10 years
  • The monthly pension payment is paid at the interest of 8%
  • The yearly pension is Rs. 12,000 which can be obtained monthly, every 3 months or 6 months
  • The minimum pension scheme will cost Rs. 1,44,578
  • Maximum Rs. 60,000 year pension is allowed under the scheme & it will cost Rs. 7,22,892
  • On maturity of the PMVVY scheme if the pensioner is alive the he will get pension price along with pension installment otherwise the nominee will get it
  • The scheme is tax free and GST is not applicable to the scheme
  • If the pensioner or his wife gets ill they can withdraw their deposit, in that case they will get 98% refund

To purchase the scheme or know more details about Pradhan Mantri Vaya Vandana Yojana (PMVVY) visit https://www.licindia.in/Products/Pension-Plans/Pradhan-Mantri-Vaya-Vandana-Yojana or talk to your LIC agent.

 

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