Union Cabinet Approves Varishtha Pension Bima Yojana 2017 (VPBY 2017)
On Tuesday, the Union Cabinet has provided its post-facto approval for Varishtha Pension Bima Yojana 2017 (VPBY 2017) as a part of financial inclusion and social security program.
The Finance ministry said in a statement that the scheme would be implemented through Life Insurance Corp (LIC) during 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.
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Under this scheme, an assured pension based on a guaranteed rate of return of 8 per cent per annum for 10 years will be provided with an option to opt for the pension on a monthly, quarterly, half-yearly or annual basis.
The statement added that the differential return, i.e. the difference between the return generated by LIC and the assured return of 8 per cent per annum, would be borne by the government as subsidy on an annual basis.
The registrations for VPBY-2017 will be open for subscription for a period of one year from the date of launch.