LIC Pradhan Mantri Vaya Vandana Yojana

LIC Pradhan Mantri Vaya Vandana Yojana

Introduction:
Government of India has announced Pradhan Mantri Vaya Vandana Yojana for citizen age 60 years and above. LIC of India has been given the sole privilege to operate this scheme. It has been decided to launch Pradhan Mantri Vaya Vandana Yojana on 4th May 2017. The scheme shall be available for one year from date of launch.

Benefits :

Pension Payment :
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.

Death Benefit:
On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to beneficiary.

Maturity Benefit:
On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.

Eligibility Conditions and Other Restrictions:

Minimum Entry Age: 60 years (completed)

Maximum Entry Age: No limit

Policy Term : 10 years

Minimum Pension: Rs. 1,000/- per month
Rs. 3,000/- per quarter, Rs.6,000/- per half-year, Rs.12,000/- per year

Maximum Pension: Rs. 5,000/- per month
Rs. 15,000/- per quarter, Rs. 30,000/- per half-year, Rs. 60,000/- per year

Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all the policies allowed to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependants.
 

Payment of Purchase Price:
The scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.

The minimum and maximum Purchase Price under different modes of pension will be as under:
 

Mode of Pension	Minimum Purchase Price	Maximum Purchase Price
Yearly	Rs. 1,44,578/-	Rs. 7,22,892/-
Half-yearly	Rs. 1,47,601/-	Rs. 7,38,007/-
Quarterly	Rs. 1,49,068/-	Rs. 7,45,342/-
Monthly	Rs. 1,50,000/-	Rs. 7,50,000/-

The Purchase Price to be charged shall be rounded to nearest rupee.
 

Mode of pension payment:
The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.

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.
 

Sample Pension rates per Rs.1000/- Purchase Price
The pension rates for Rs.1000/- Purchase Price for different modes of pension payments are as below:
Yearly: Rs. 83.00 p.a.
Half-yearly: Rs. 81.30 p.a.
Quarterly: Rs. 80.50 p.a.
Monthly: Rs. 80.00 p.a.
The pension instalment shall be rounded off to the nearest rupee. These rates are age independent.
 

Surrender Value:
Can be surrendered for 98% of Purchase Price.
 

Loan:
Loan facility is available after completion of 3 policy years. (75% of the Purchase Price.)Int.@ 10 %

Loan interest will be recovered from pension amount payable under the policy. The loan outstanding shall be recovered from the claim proceeds at the time of exit.
 

Taxes:
Statutory Taxes, if any, imposed on this Plan by the Government of India or any other constitutional tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.

Senior Citizen Savings Scheme (SCSS) Account

Senior Citizen Savings Scheme (SCSS) Account

An individual of the Age of 60 years or more may open the account.

An individual of the age of 55 years or more but less than 60 years who has retired on super ​annuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.

Maturity period is 5 years.

A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).

In case of Cheque, the date of realiz​​ation of Cheque in Govt. account shall be date of opening of account.

Nomination facility is available at the time of opening and also after opening of account.

Account can be transferred from one post office to another

Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.

Joint account can be opened with spouse only and first depositor in Joint account is the investor.

Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or Money Order.

In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January. It will be applicable at all CBS Post Offices.

*Quarterly interest of SCSS accounts standing at CBS Post offices can be credited in any savings account standing at any other CBS post offices.

After maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction.

Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Rate of Interest: From 1.04.2017, interest rates are as follows:-

8.4​% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.

There shall be only one deposit in the account in multiple of INR.1000/- max. not exceeding INR 15 lac.

Account can be opened by cash for the amount below INR 1 lac and for INR 1 Lac​ and above by

C​heque only.

Premature closure is allowed after one year on deduction of an amount equal to1.5% of the deposit & after 2 years 1% of the deposit.

TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a.