The Indian government in the Union Budget 2014-2015, announced the revival of Varishtha Pension Bima Yojana as a pension scheme for senior citizens. The life Insurance Corporation of India (lIC) has now been given the sole privileged to operate this scheme.
The plan can be purchased by payment of a purchase price depending upon the mode of payment. The pensioner has an option to choose either the amount of pension or the purchase price. The modes of payment are monthly, half-yearly, quarterly and monthly and shall be through ECS/NEFT only.
The maximum range of pension per annum is from Rs5,000 to 60,000 and the minimum range is from Rs500 to 6,000. The minimum entry age of a pensioner is Rs60.
Pension rates for Rs1,000 purchase price per annum for different modes of pension payment are different. For yearly, the rate is Rs93.8, Rs91.6 for half-yearly, Rs90.6 for quarterly and Rs90 for monthly.
The policy can be surrendered after completion of 15 years and the surrender value payable will be refund of purchase price. Taxes including service tax, if any, shall be as per the tax laws and the rate of tax as applicable from time to time. The amount of tax payable as per the prevailing rates shall be payable by the policy holder on purchase price.
If a policyholder is not satisfied with the ‘terms and conditions’ of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy.
Bilateral push
Bandaru Dattatreya, Union Minister of State (IC) labour and Employment met Tanzanian delegation led by labour minister and also accompanied by four other ministers and five senior officers of Tanzania to discuss social security issues. While welcoming the delegation, Minister of State highlighted the endeavour of the Government to safeguard the interest of the workforce in the country and to provide social security to the weaker section of the society. He highlighted the various benefits available to organised and un-organised sector workers under the various labour laws administered by Ministry of labour and Employment.
Besides, he also outlined several landmark initiatives taken by the present Government in the field of labour reforms including the launch of ShramSuvidha portal by Prime Minister and launch of ‘Universal Account Number’ (UAN) to ensure member portability and other facilities such as viewing of PF balance online and SMS alert. Setting up of Central Intelligence and Analysis Unit in EPFO and ESIC to end inspector raj and bring transparency in inspection mechanism. He also mentioned the Make In India campaign launched by PM and labour reforms including impetus on skill development programme to make it a success.
He suggested that both the countries should work together in the field of research and training programme so that the best practices can be shared by the officials and for possibilities of signing MoU be explored. Anil Kumar Agarwal, IAS, DG, Employees State Insurance Corporation (ESIC) also made a presentation on the medical facilities provided under the scheme and interacted with the visiting delegation.
Before coming to meet union minister, the delegation visited Employees Provident Fund Organisation (EPFO) where a detailed presentation was made by Central Provident Fund Commissioner (CPFC) on the social security schemes run by retirement fund body. The delegation interacted with the Indian officials and shared their experience and the challenges that are faced by both the countries in providing social security to the workforce in their respective countries.