Scheme to be run by LIC has been approved by the Cabinet
The Union Cabinet on Tuesday gave post-facto approval for the Varishtha Pension Bima Yojana 2017 (VPBY-2017) as part of financial inclusion and social security programmes. “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,” the Finance Ministry said in a statement.
The scheme would provide an assured pension based on a guaranteed rate of return of 8 per cent per annum for 10 years, with an option to opt for pension on a monthly, quarterly, half-yearly or annual basis. “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,” it added.
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