Going by its commitment for financial inclusion and social security, the Union Cabinet chaired by Prime Minister Narendra Modi has given its post-facto approval for launching of Varishtha Pension Bima Yojana 2017 (VPBY 2017), a new pension scheme for senior citizens, which will give a guaranteed return of 8 per cent per annum for 10 years. The scheme will provide an option to opt for pension at either a monthly, quarterly, half yearly or at annual basis.
The scheme will be implemented through Life Insurance Corporation of India (LIC) in the current financial year to protect elderly persons who are 60 years and above of age against a future fall in their interest income due to uncertain market conditions by providing them pensions with a guaranteed return.
VPBY 2017, pension scheme will be open for subscription for a period of one year from the date of launch which is a part of government's commitment for financial inclusion and social security. The differential return, the difference between the return generated by state-owned LIC and the assured return of 8 per cent per annum would be borne by the government as subsidy on an annual basis.