NEW DELHI: The Union Cabinet today gave its ex-post facto approval for the Varishtha Pension Bima Yojana (VPBY) launched in 2003 and 2014 .
The Cabinet also granted approval for expenditure incurred on subsidy amount released to Life Insurance Corporation (LIC) during the period of 2003-04 to 2014-15 for VPBY, 2003 and approval to incur expenditure on VPBY, 2003 and 2014 from the financial year 2015-16 onwards.
The schemes are implemented through LIC of India, and the difference between the actual yield earned by LIC on the funds invested under the scheme and the assured return committed by the government is paid as subsidy to LIC.
Both are pension schemes intended to give an assured minimum pension to the senior citizens based on an assured minimum return on the subscription amount. The pension is envisaged until death from the date of subscription, with payback of the subscription amount on death of the subscriber to the nominee.
Both the schemes VPBY – 2003 and VPBY – 2014 are closed for future subscriptions. However, policies sold during the currency of policy are being serviced as per the commitment of guaranteed per cent return assured by the government under the schemes. (AGENCIES)
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