30 September 2016 Current Affairs: The Union Cabinet has given its ex-post facto approval for the Varishtha Pension Bima Yojana (VPBY) 2003 and Varistha Pension Bima Yojana (VPBY) 2014. The Cabinet also granted approval for expenditure incurred on subsidy amount released to LIC for the both schemes.
VPBY was launched on 14th July, 2003 and was open till 14th August, 2015 and VPBY was launched on 14th August, 2014.
Both the schemes are closed for future subscriptions. These schemes were implemented through Life Insurance Corporation of India (LIC).
Both are pension schemes intended to give an assured minimum pension to 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. The difference between the actual yield earned by LIC on the funds invested under the schemes and the assured return committed by Union Government is paid as subsidy to LIC.
The policies sold during currency of policy are being serviced as per the guaranteed 9% return assured by the Government. As of March 2016, a total number of 3,17,991 annuitants are being benefited under VPBY 2014. Similarly, 2,84,699 annuitants are being benefited under VPBY- 2003.