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Govt extends Pradhan Mantri Vaya Vandana Yojana by 3 yrs till Mar 2023 | Government extended Pradhan Mantri Vay Vandana Yojana till March 2023, will get minimum pension at the age of 60


Govt extends Pradhan Mantri Vaya Vandana Yojana by 3 yrs till Mar 2023

New Delhi The government on Wednesday extended the Prime Minister's Vay Vandana Yojana (PMVVY) social security scheme for senior citizens for three years, till March 2023. In the cabinet meeting chaired by Prime Minister Narendra Modi, it was decided to extend the scheme for three years till 31 March 2023. PMVVY is being implemented through Life Insurance Corporation (LIC). In this, senior citizens 60 years and above are guaranteed minimum pension on joining the scheme.

According to the official release, for the year 2020-21, the annual return of 7.4 percent is guaranteed. After that the guarantee of return on this will be reviewed on an annual basis. Earlier, the plan had fixed 8 percent returns. The government's financial accountability is limited to meeting the gap between the market return earned by LIC on the investment amount and the 7.4 percent return (guaranteed return). This arrangement is for 2020-21 and after that the interest rate on this scheme will be fixed every year as per Senior Citizen Savings Scheme (SCSS).

The first year's expenditure on the management of the scheme has been fixed at 0.5 percent of the investment amount. The expenditure for the next nine years from the second year has been fixed at 0.3 percent per annum. The plan was announced in the budgets of 2017-18 and 2018-19. In the budget for FY 2018-19, the maximum investment amount has been doubled to 15 lakhs per senior citizen under PMVVY. In this ten year plan, pension can be taken monthly, quarterly, half yearly, annually.

This post was published on May 20, 2020 8:48 pm

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