Varishtha Pension Bima Yojana is Closing on 14/08/15

Varishtha Pension Bima Yojana (VPBY) which was launched government on 15/08/2014 is soon going to close on 14/08/2015. Varishtha Pension Bima Yojana is a pesion secheme which is giving a return of 9% per annum if pension is opted in monthly mode and 9.38% when opted for yearly mode. Minimum amount for investment in VPBY is Rs. 63960, Rs. 65430, Rs. 66170 and Rs. 66665 for yearly, half yearly, quarterly and monthly mode respectively and miximum amount which can be invested in Varishtha Pension Bima Yojana (VPBY) is Rs. 639610, Rs. 654275, Rs. 661690 and Rs. 666665 for yearly, half yearly, quarterly and monthly mode respectively.

Eligibility conditions and salient features of Varishtha Pension Bima Yojana (VPBY)

Minimum Entry Age:  60 years (completed)

Maximum Entry Age:  No limit

Minimum Pension: Rs. 500/- per month,  Rs. 1,500/- per quarter, Rs. 3,000/- per half-year, Rs. 6,000/- per year

Maximum Pension: Rs. 5000/- 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 issued 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 plan 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:

The Purchase Price to be charged shall be rounded to nearest multiple of Rs.5/-.

Mode of pension payment:

The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through ECS/NEFT only.

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. 93.8069 p.a.

Half-yearly:     Rs. 91.7045 p.a.

Quarterly:        Rs. 90.6767 p.a.

Monthly:         Rs. 90.0000 p.a.

The pension installment shall be rounded off to the nearest rupee. (These rates are not age specific.)

Benefits

Pension Payment : During the lifetime of Pensioner, a pension in the form of immediate annuity as per mode chosen by the Pensioner shall be payable.

Death Benefit: On death of the Pensioner the Purchase Price shall be refunded.