The scheme will be launched as part of Government’s commitment for financial inclusion and social security.
It will be implemented through Life Insurance Corporation of India (LIC) during the current financial year i.e. FY 2016-17.
It will be open for subscription for a period of one year from the date of launch. Features of Scheme
The aim of the scheme is to provide social security during old age and protect elderly persons aged 60 years and above against future fall in their interest income due to uncertain market conditions.
It will provide an assured pension based on a guaranteed rate of return of 8% per annum for ten years.
It will also have an option to opt for pension on a monthly, quarterly, half yearly and annual basis.
The Union Government will bear the differential return i.e., the difference between the return generated by LIC and the assured return of 8% per annum as subsidy on an annual basis.
LIC: Know More- Type: State-owned enterprise
- government corporation
- Industry: Financial services
- Founded: 1 September 1956
- Headquarters: Mumbai, India
- Chairman: V.K Sharma
- MD: Usha Sangwan
- Total assets: ₹2,009,119 crore (US$300 billion) (2016)
- Owner: Government of India
- Number of employees: 119,767
