LIC launches modified PMVVY pension scheme

Hyderabad: National insurer LIC on Monday said the modified centrally-subsidised pension scheme, PM Vaya Vandana Yojana (PMVVY), for those over 60 years of age is available for sale from Tuesday. The government introduced the PMVVY (modified-2020), with the modified rate of pension for those over 60 years and above, and LIC is solely authorised to run the scheme that offers a total payout not exceeding Rs 15 lakh. The scheme is a non-linked, non-participating, pension scheme subsidized by the Centre.

This plan is e available for sale commencing from Tuesday for three financial years — up to March 2023, LIC said in a statement, adding that the scheme can be purchased offline as well as online from LIC website. The policy has a 10-year tenure and for policies sold in the first financial ending March 2021, the scheme will provide an assured rate of return of 7.40 per cent per annum, but will be payable monthly for the entire duration of 10 years.

For policies sold during the next two financial years, the applicable assured rate of interest will be reviewed and decided at the beginning of each financial year by government, LIC said. Total amount of purchase price under all the policies under this plan and all the policies taken under earlier versions of the scheme allowed to a senior citizen shall not exceed Rs 15 lakh.