Amid lowering interest rates, the pension scheme for senior citizens which closed on March 31, 2020 has been revamped and extended for another 3 years as PMVVY modified 2020 scheme so as to benefit senior citizen class who mostly rely on interest income. In a statement LIC which is the sole operator of the scheme said, "This scheme is a Non-Linked, Non-Participating, Pension Scheme subsidised by the Government of India".
Salient Features of Pradhan Mantri Vaya Vandana Yojana (PMVVY) (Modified- 2020) Scheme
1. The plan will be offered for sale from May 26, 2020 for up to three fiscal years i.e. until March 31, 2023.
2. The new modified scheme has been launched with revised rate of return for seniors aged 60 and above.
3. Both the online and offline platforms can be taken to for purchasing the plan. For offline transaction, you can visit LIC's portal www.licindia.in
4. The policy term is 10 years and for the first financial year, the pension rate has been fixed at 7.4% per annum payable monthly i.e. equivalent to 7.66% p.a. for the entire duration of the policy term i.e. 10 years.
5. And for policies purchased in the next 2 fiscal years i.e. from April 1, 2021- March 31, 2023, the pension rate shall be reviewed and fixed by the ministry of finance at the beginning of the financial year.
6. A maximum of Rs. 15 lakh per senior citizen can be invested in all the policies under this plan (bearing UIN: 512G336V01) and even the previous edition of PMVVY that has the UIN 512G311V01 and UIN: 512G311V02)
7. The plan can be purchased by paying a lump sum and at the time of investment he or she can choose the pension mode one needs to go by i.e. monthly, quarterly, half-yearly or yearly.
8. Depending on the chosen mode of pension pay-out, the minimum purchase price is stipulated as specified below:
For monthly mode - Rs 1,62,162
For quarterly mode-1,61,074
For half-yearly mode- Rs 1,59,574
For yearly mode- Rs. 156658
9. Maximum pension pay-out in different payment modes:
In monthly mode - Rs 9250
In quarterly mode-Rs. 27750
In half-yearly mode- Rs 55500
In yearly mode- Rs. 111000
10. In case the pensioner survives the policy term, pension as per the chosen mode shall be paid out by the organization.
11. In case the pensioner dies, the purchase purchase shall be paid to the nominee or legal heirs of the PMVVY account holder.
12. In a case if the pensioner survives through the policy term of 10 years then purchase price together with the last pension payout shall be given.
13. After 3 policy years, one can even avail loan equivalent to up to 75% of the purchase price of the policy.
14. There is also a provision of early exit from the scheme for purpose such as treatment of critical or terminal disease of self or spouse. And in such a case, surrender value that is payable is 98% of the purchase price.