The Pradhan Mantri Vaya Vandana Yojana (PMVVY) pension scheme, meant for senior citizens, has now been extended till March 31, 2023. This scheme was open till March 31, 2020.

According to a tweet by K.S. Dhatwalia, Principal Director General of the Press Information Bureau, “Cabinet approves extension of ‘Pradhan Mantri Vaya Vandana Yojana’ (#PMVVY) up to 31st March, 2023 for further period of three years beyond 31st March, 2020; This to enable old age income security and welfare of Senior Citizens”

What is Pradhan Mantri Vaya Vandana Yojana
This scheme offered by Life insurance Coporation (LIC) of India gives a guaranteed payout of pension at a specified rate for 10 years. It also offers a death benefit in the form of return of purchase price to the nominee.

So, if you are a senior citizen and have lump sum money in your bank account, then you can consider buying this immediate annuity scheme till March 31, 2023.

Here are important details of the pension scheme.

Eligibility criteria and other conditions:

• Minimum entry age: 60 years (completed)
• Maximum entry age: No limit
• Policy term: 10 years
• Minimum pension: Rs 1000 per month
• Maximum pension: Rs 10000 per month. The total amount of pension allowed per senior citizen should not exceed the maximum pension limit.

Mode of pension payment
The modes of pension payment are monthly, quarterly, half-yearly and yearly. The pension payment is processed through NEFT or Aadhaar Enabled Payment System. Thus, depending on the mode of pension payment, that is, monthly, quarterly, half-yearly or yearly, the first instalment of pension will be paid after a month, three months, six months, or a year from the date of purchase of the scheme respectively.

The scheme can be purchased by investing a lump sum in PMVVY pension scheme in the following manner, according to which you will get the pension income.

Source: LIC website

You can buy PMVVY pension scheme from Life Insurance Corporation of India (LIC) of India. You can purchase the scheme either offline or online. If you want to purchase it offline, you must visit the nearest LIC office. However, if you want to purchase the annuity scheme online, log on to the website of LIC – www.licindia.in.

Points to note
Maturity benefit: If the pensioner survives till the end of the policy term of 10 years, purchase price of the annuity along with final pension installment will be payable to the policyholder.

Death benefit: If the pensioner dies during the policy term of 10 years, the purchase price of the annuity scheme will be refunded to the beneficiary.