Government doubles investment limit for pension policy

New Delhi: In a relief to senior citizens, the Centre on Wednesday doubled the investment limit to Rs 15 lakh under the Pradhan Mantri Vaya Vandan Yojana (PMVVY) pension scheme and extended the subscription period, which was to end on May 3, by two years.

The scheme is meant for citizens aged 60 years and above. It was opened for subscription from May 4, 2017 to May 3, 2018. It has now been extended to March 31, 2020. The scheme provides an assured pension based on a guaranteed rate of return of 8 per cent per annum for 10 years, with an option to opt for pension on a monthly, quarterly, half yearly or annual basis.

The decision was taken today at the Union Cabinet chaired by PM Narendra Modi, IT and law minister Ravi Shankar Prasad said.

He said the Cabinet has approved increasing the investment limit from Rs 7.5 lakh to Rs 15 lakh as well as the extension of subscription period for PMVVY as part of the government’s commitment to financial inclusion and social security.

The move will enable up to Rs 10,000 pension per month for senior citizens, he added.

As of March 2018, 2.23 lakh senior citizens had subscribed to PMVVY. In the previous scheme,  3.11 lakh senior citizens have invested.