PMVVY Pradhan Mantri Vaya Vandana Yojana 2017-18

The Central Government of India has announced a new pension scheme named Pradhan Mantri Vaya Vandana Yojana- for senior citizens aged 60 or above is a pension scheme which is offered by Life Insurance Corporation of India (LIC) with 8% guaranteed pension plan. The PMVVY is an immediate pension plan scheme, similar to the varishtha Pension Bima Yojana launched in 2014-15. It’s a limited period scheme where you need to invest a lump sum amount and you will start receiving the pension income as per the chosen payment mode.

PMVVY (Pradhan Mantri Vaya Vandana Yojana 2017-18)

The Central Government of India has announced a new pension scheme named Pradhan Mantri
Vaya Vandana Yojana- for senior citizens aged 60 or above is a pension scheme which is offered
by Life Insurance Corporation of India (LIC) with 8% guaranteed pension plan.
The PMVVY is an immediate pension plan scheme, similar to the varishtha Pension Bima
Yojana launched in 2014-15. It’s a limited period scheme where you need to invest a lump sum
amount and you will start receiving the pension income as per the chosen payment mode.

Features of Pradhan Mantri Vaya Vandana Yojana:

 Indian Citizens aged 60years and above are eligible to invest in this scheme & there is no
maximum age limit.
 The plan is open for subscription from 04-May- 2017 to 03-May- 2018.
 One time premium payment of around Rs 1, 44,578/- fetches a monthly pension of Rs
1,000 for 10 years.
 One time premium payment of Rs 7,22,892/- would give a monthly pension of Rs 5000
(maximum)

Premium & Pension Details of the Scheme:

This is an immediate pension plan. This means if you invest in this plan, your pension will start
from the next month itself. Below is the chart of the minimum and maximum investment under
this plan.

  
  
       
      
  
Details of Pradhan Mantri Vaya Vandana Yojana 2017-18:

1. The ceiling of maximum pension is for a family as a whole i.e. total amount of pension
under all the PMVVY policies issued to a family under this plan shall not exceed the
maximum pension limit. The family for this purpose will comprise of the pensioner,
his/her spouse and dependents
2. The scheme will provide an assured return of 8 per cent per annum payable monthly
(equivalent to 8.30 per cent perannum) for 10 years.
3. Policyholder can opt for monthly, quarterly, half yearly or yearly pension payment.
4. There is a lock-in period of 10 years, but in the case of Critical/Terminal Illness of self or
spouse, you can withdraw the money prematurely. In this case, Surrender value would be
98% of the purchase price.
5. PMVVY can be purchased offline as well as online through Life Insurance Corporation
(LIC) of India which has been given the sole privilege to operate this scheme.
6. The pension income is taxable in the hands of the pensioner. The tax rate depends on
his/her income tax slab.
7. Pension Payment will be through ECS or NEFT.
8. On maturity of PMVVY, the policy holder will get the complete Invested amount
(Purchase Price) back.
9. In the case of the demise of the policyholder in between the policy term, the purchase
price will be refunded to the nominee.
10. You can avail the loan facility after completion of 3 policy years. The maximum loan
payable will be 75% of purchase price. Interest on the loan will be recovered from the
pension amount.

Benefits of the Scheme:

The benefits under this plan are as below.
a) Pension Amount: On survival of the Pensioner during the policy term of 10
years, pension in arrears (at the end of each period as per mode chosen) shall be
payable. For example: If you opt for monthly pension mode then after one month
of policy date you will start receiving the pension amount.
b) Death Benefit: On the death of the pensioner during the policy term (10 years),
the Purchase Price will be refunded to the nominee (or legal heirs in absence of
nominee)
c) Maturity Benefit: If the pensioner survives up to the end of the policy term,
Purchase Price and final installment of the pension will be paid to the pensioner.

Exclusion:
Suicide: There shall be no exclusion on count of suicide and full Purchase Price shall be
payable.