Why in News?
The FM in the Budget 2018 proposed extending the Pradhan Mantri Vaya Vandana Yojana by two years, up to March 2020 and doubled the cap on investment in the scheme to Rs. 15 lakh
FACTS FOR PRELIMS
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
The government has launched the ‘Pradhan Mantri Vaya Vandana Yojana (PMVVY)’ to provide social security during old age and to protect elderly persons aged 60 and above against a future fall in their interest income due to uncertain market conditions.
The scheme enables old age income security for senior citizens through the provision of assured pension/return linked to the subscription amount based on a government guarantee to Life Insurance Corporation of India (LIC).
This annuity-cum-insurance scheme entitles the senior citizen policyholder to a guaranteed pension that equates to an annual return of 8% on investment.
This pension plan, unlike the entirely government-funded Indira Gandhi National Old Age Pension Scheme for the elderly who live below the poverty line, is contributory in nature