25/01/2017
Cabinet clears pension scheme for seniors with 8% return
New Delhi, Jan 24:
Cabinet today approved a pension scheme for senior citizens under which
insurance behemoth LIC will provide a guaranteed return of 8 per cent
for 10 years, as part of government’s social security and financial
inclusion programme.
The Union Cabinet chaired by Prime Minister Narendra Modi gave its
post-facto approval for launching of Varishtha Pension Bima Yojana 2017
(VPBY 2017), an official statement said.
“The scheme will provide an assured pension based on a guaranteed rate
of return of 8 per cent per annum for ten years, with an option to opt
for pension on a monthly/ quarterly/half yearly and annual basis,” it
said.
The scheme will be implemented through Life Insurance Corporation of
India (LIC) in the current financial year to provide social security
during old age and protect elderly persons aged 60 years and above
against a future fall in their interest income due to uncertain market
conditions.
The differential return — the difference between the return generated by
state-owned LIC and the assured return of 8 per cent per annum would be
borne by the government as subsidy on an annual basis.
VPBY-2017 is proposed to be open for subscription for a period of one year from the date of launch, the statement said.
The pension scheme, the release said is a part of government’s commitment for financial inclusion and social security.
source :The Hindu Business line
(This article was published on January 24, 2017)