Varishta Pension Bima Yojana, Eligibility Condition & Mode of Pension Payment

September 2, 2020 | Last Modified: September 2, 2020 at 4:29 pm

Varishtha Pension Bima Yojana (VPBY) is a Pension Scheme for senior citizens. The scheme is being administered through life insurance Corporation of India (LIC).

The scheme will be implemented during the current financial year to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.

VPBY will provide an assured pension based on a guaranteed rate of return of 8% per annum for 10 years with an option to opt for pension on a monthly/ quarterly and annual basis.

Varishtha Pension Bima Yojana

The NDA government during its last term in office had introduced the Varishtha Pension Bima Yojana as a pension scheme for the senior citizens. Under the scheme a total number of 316 lakh annuitants are being benefited and the corpus amount to Rs.6,095 crore. The Varishtha Pension Bima Scheme is administered through LIC. under the scheme the subsribers on payment of a lump sum amount get pension at a guaranteed rate of 9% per annum (payable monthly).Any gap in the guaranteed return over the return generated by the LIC on the fund is compensated by Government of India by way of subsidy payment in the scheme.

Eligibility for VPBY Scheme

There are the following eligibility condition and restrictions for Varishta Pension Bima Yojana :

  • Minimum entry age should be 60 years
  • Maximum entry age no limit

Salient Features of Scheme

  • Scheme provide pension in the form of immediate annuity during the lifetime of the pensioner with return of purchase price to the family/ nominee on his/her death.
  • The mode of payment of pension can be monthly, quarterly, half-yearly or yearly
  • The pension payment shall be through ECS or NEFT

Mode of Pension Payment

The mode of pension payment are monthly, quaterly, half-yearly and yearly. The pension payments shall be through ECS/NEFT only. The 1st instalment of pension shall be paid after one year, six month, three month or one month from the date of purchase of the same depending on the mode of pension payment.

Frequently Asked Questions (FAQ`s)

What is Varishtha Pension Bima Yojana ?

The Varishtha Pension Bima Yojana is a scheme the benefits od senior citizens aged 60 years.

What is minimum age for Varishtha Pension Bima Scheme?

The minimum age for scheme should be 60 years completed

What should be Maximum age for scheme?

Maximum entry age no limit

What is mode of pension payment?

The mode of pension payment are monthly, quarterly, half-yearly and yearly.