[ad_1]
According to a tweet by K. S. Dhatwalia, Principal Director General of Press Information Bureau, “Cabinet approves extension of ‘Pradhan Mantri Go Vandana Yojana’ (#PMVVY) until 31 March 2023 to the period of three years to 31 March 2020; This to enable the old-age income security and the welfare of the Citizens of the third age”
#Cabinet approves the extension of ‘Pradhan Mantri Go Vandana Yojana’ (#PMVVY) until 31 March 2023 for more p… https://t.co/RbmRiXgmlx
— K. S. Dhatwalia (@DG_PIB) 1589965082000
What is Pradhan Mantri Go Vandana Yojana?
This scheme offered by Life insurance Coporation (LIC) of India gives a guarantee of payment of pension at a rate specified by 10 years. It also provides a death benefit in the form of a refund of the purchase price to the candidate.
Therefore, if you are a senior citizen and have the lump sum of money in your bank account, then you can consider the purchase of this annuity immediate regime until 31 March 2023.
GDP states the following details of the pension plan.
- To allow initially secured a rate of return of 7.40 % per annum for the year 2020-21 year and thereafter is reset to zero each year.
- Annual reinstatement of insurance rate of interest with effect from 1 April of the financial year in line with the revision of the rate of returns of senior Citizens Savings Scheme (SCSS), up to a maximum of 7.75% with a fresh evaluation of the plan in breach of this threshold at any time.
- The approval of expenses incurred on account of the difference between the market rate of return generated by an LIC (net of expenses) and the guaranteed rate of return under the scheme.
- Capping of Management costs at 0.5% p. a. of the project funds for the first year of the scheme in respect of new policies issued and, thereafter, 0.3% p. a. for the second year onwards for the next 9 years.
- The delegation of the authority to the Minister of Finance to approve annual reset of the rate of return at the beginning of each financial year.
Eligibility criteria and other conditions:
- Minimum age: 60 years (completed)
- Maximum entry age: No limit
- Policy term: 10 years
- Minimum pension: Rs 1000 per month
- Maximum pension: Rs 10000 per month. The total amount of the pension allowed by the citizen of the third age must not exceed the limit of the maximum pension.
The mode of payment of pension
The modes of pension payment are monthly, quarterly, semi-annual and annual. The pension payment will be processed through OIL or Aadhaar Enabled Payment System. Therefore, depending on the mode of pension payment, i.e., monthly, quarterly, half yearly or yearly, the first instalment of pension will be paid after one month, three months, six months, or one year from the date of purchase of the plan, respectively.
The scheme can be acquired through the investment of a lump sum in PMVVY pension plan in the following way, according to what you are going to get the pension.
According to the GDP release, “The minimum investment has also been revised to Rs 1,5 6,658 for the pension of Rs 12,000/- per year and Rs 1, 62,162/- for obtaining a minimum pension amount of Rs 1000/- per month in accordance with the plan.”
You can buy PMVVY pension scheme of Life Insurance Corporation of India (LIC) of India. You can buy the plan, whether online or offline. If you want to buy online, you should visit the nearest LIC office. However, if you want to buy the annuity scheme on-line, log on to the web site of the LIC – www.licindia.in.
Points to keep in mind
Maturity benefits: If the pensioner survives until the end of the policy term of 10 years, the purchase price of the annuity along with the end of pension contributions will be payable to the insured.
Death benefit: If the pensioner dies during the policy term of 10 years, the purchase price of the annuity scheme will be refunded to the beneficiary.
Click here to download ET Online guide to everything personal finance in times of Covid-19
.
[ad_2]
