Following are the major benefits under thePradhan Mantri Vaya Vandana Yojana (PMVVY):
Scheme provides an assured return of 8% p.a. payable monthly (equivalent to 8.30% p.a. effective) for 10 years.
Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.
The scheme is exempted from Service Tax/ GST.
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.
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Loan upto 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs). Loan interest shall be recovered from the pension installments and loan to be recovered from claim proceeds.
The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.
On death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.
Minimum / Maximum Purchase Price and Pension Amount:
Mode of Pension MinimumPurchase Price Maximum
Purchase Price Minimum
Pension amount Maximum
Pension amountYearly Rs. 1,44,578/- Rs. 7,22,892/- Rs. 12,000/- Rs. 60,000/-Half-yearly Rs. 1,47,601/- Rs. 7,38,007/- Rs. 6,000/- Rs. 30,000/-Quarterly Rs. 1,49,068/- Rs. 7,45,342/- Rs. 3,000/- Rs. 15,000/-Monthly Rs. 1,50,000/- Rs. 7,50,000/- Rs. 1,000/- Rs. 5,000/-
The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependants.
The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Corporation.
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