Varishta Pension Bima Yojana

Varishta Pension Bima Yojana

The Varishta Pension Bima Yojana (VPBY) is a scheme for the benefit of senior citizens aged 60 years and above. The scheme is being administered through Life Insurance Corporation of India (LIC). It will remain open for a period of one year from the date of launch.

The Scheme will be implemented 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. It 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.

Salient features

• The scheme provides pension in the form of immediate annuity during the lifetime of the pensioner with return of purchase price to the family/nominee on his/her death.
• The mode of payment of pension can be monthly, quarterly, half-yearly or yearly.
• The pension payment shall be through ECS or NEFT.

Eligibility Conditions and Other Restrictions

1. Minimum Entry Age: 60 years (completed)
2. Maximum Entry Age: No limit

Mode of pension payment

The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through ECS/NEFT only. The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.

Source : PIB