The Union Cabinet
chaired by the Prime Minister Shri Narendra Modi has given its
post-facto approval for launching of Varishtha Pension Bima Yojana 2017
(VPBY 2017). It is a part of Government’s commitment for financial
inclusion and social security.
The scheme will be implemented through Life Insurance Corporation of
India (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 scheme will provide an assured pension based on a
guaranteed rate of return of 8% per annum for ten years, with an option
to opt for pension on a monthly / quarterly / halfyearly and annual
basis. The differential return, i.e., the difference between the return
generated by LIC and the assured return of 8% per annum would be borne
by Government of India 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.