The Cabinet gave its approval to Varishtha Pension Bima Yojana (VPBY), 2017 last week. It will give an assured pension, offering an 8% per annum guaranteed rate of return for 10 years, with an option for pension on a monthly, quarterly, half-yearly or annual basis. “The purpose of VPBY 2017 is to help those citizens who rely on interest income from their retirement savings to cope with lower interest rate environment. Under the new scheme, the fixed interest rate commitment is of 10 years, which has faced some criticism. Like the earlier scheme, it is expected that the maximum pension ceiling will apply to the whole family, i.e., total amount of pension under all the policies issued to a family under this plan shall not exceed the maximum pension limit.

Source: Mint January 31, 2017 10:53 UTC