Cabinet approves Pension Schemes of 2003, 2014

The schemes are implemented through the LIC by calculating a the amount of subsidy due to the company

The cabinet, Sepetember 28, gave its ex-post facto approval to two pension schemes- the Varishtha Pension Bima Yojana (VPBY) 2003 and the VPBY 2014.

It also granted approval for expenditure incurred on subsidy amount released under the 2003 scheme to the LIC till date, while also granting approval to incur further expenditure on the both the schemes from 2015-16 onwards.

The schemes are implemented through the Life Insurance Corporation (LIC) of India by calculating a subsidy amount due to the company by marking the difference between LIC's actual yield earned on funds invested under the scheme and the assured return committed by the Government.

Both are pension schemes intended to give an assured minimum pension to the senior citizens based on an assured minimum return on the subscription amount.

The pension is envisaged until death, with the payback of the subscription amount to the nominnee beginning after the death of the subscriber.

Both the schemes VPBY - 2003 and VPBY - 2014 are closed for future subscriptions.

However, policies sold during the currency of policy are being serviced as per the commitment of guaranteed 9% return assured by the Government under the schemes.

VPBY-2014 was open for a year beginning from 14th August, 2014 and is benfiting 3,17,991 annuitants, as on March 31, 2016. Similarly, a total number of 2,84,699 annuitants are being benefited under VPBY- 2003 as on 31st March, 2016.