How to Manage PMVVY and What Replaced It

About 8 lakh senior citizens were enrolled in PMVVY when it closed in March 2023, with a total subscription of around ₹95,000 crore managed by LIC of India (LIC Annual Report 2023-24). All these policies continue till their respective maturity dates — the last cohort matures in March 2033.

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens, notified by the Ministry of Finance on 4 May 2017 and operated exclusively by LIC of India under the LIC Act 1956 and IRDAI guidelines. It provides:

• Guaranteed pension at a rate fixed at the time of subscription (varied year to year — final cohort got 7.4% per annum) for a 10-year tenure.
• Pension payable monthly / quarterly / half-yearly / annually at the policyholder's choice.
• Maximum corpus per senior citizen: ₹15 lakh (per individual; a couple can invest ₹15 lakh each = ₹30 lakh combined).
• Loan up to 75% of corpus after 3 years at the prevailing rate (currently ~9.5% p.a.).
• On the death of the pensioner, the corpus is returned to the nominee. On survival to maturity, the corpus + final pension instalment is returned to the pensioner.

Important — 2026 status: PMVVY was closed for fresh enrolments on 31 March 2023 by Notification of MoF. Existing policyholders are unaffected and continue to draw pension at the locked-in 7.4% rate till their respective 10-year tenures end. No new policy can be issued today.

• Your pension continues to be credited on the chosen frequency (monthly / quarterly / half-yearly / annually) on the policy anniversary date of each cycle.
• The pension rate is locked at 7.4% p.a. (or whatever rate was applicable on your purchase date — verify on your policy bond).
• On maturity (10 years from purchase), the corpus + final instalment is paid back.
• On death of the pensioner during the tenure, the purchase price (corpus) is paid back to the nominee.

• Login to https://licindia.in customer portal with your policy number + DOB.
• “My Policies” → select PMVVY policy → “Premium / Pension Statement” → confirms each pension credit.
• Cross-check with your bank passbook every cycle.

• IRDAI requires re-KYC every 3 years (sometimes earlier on policy anniversary).
• Visit your LIC branch (the issuing branch is preferred but any LIC branch works) with: original policy bond, Aadhaar, PAN, latest bank passbook.
• Re-KYC is now mostly digital — the branch staff scan the documents and update on the LIC server.

• If your bank merged (e.g., Vijaya/Dena/Allahabad/OBC/HDFC-HDFC Bank, etc.) or you closed the old account, your pension will fail to land.
• Visit LIC branch with: filled NEFT mandate form (Form 3756 or equivalent), original cancelled cheque of new bank, original policy bond, ID proof.
• The change is effective from the next pension cycle (1-2 cycles for full propagation).

• Available after 3 years from policy commencement.
• Maximum loan: 75% of purchase price.
• Interest rate: prevailing LIC policy loan rate, ~9.5% p.a. (revised periodically).
• Apply at branch with: filled loan form + policy bond + ID + bank cheque.
• Loan is disbursed in 7-15 days. Loan + interest can be repaid anytime; if outstanding at death/maturity, it is deducted from the corpus payout.

• File Form 3756 (Nomination form) at LIC branch with new nominee's ID proof and your policy bond.
• Take an acknowledgement copy with branch stamp.
• Effective immediately on registration.

• File Form 3781 (Duplicate Policy Bond) at LIC branch.
• Submit: written application + indemnity bond on stamp paper + ID proof + the loss-affidavit (if value > ₹5 lakh).
• Fee: ~₹200 + stamp duty.
• Duplicate issued in 30-45 days.

• LIC sends a maturity intimation 3 months before maturity date.
• File the maturity discharge form + original policy bond + cancelled cheque.
• Corpus + final pension instalment is credited within 30 days of submission.

• Nominee files death claim form at any LIC branch.
• Documents: original death certificate (Municipal Corporation), policy bond, nominee KYC, bank cancelled cheque, age proof of pensioner.
• Corpus is paid to nominee within 30-60 days. See the dedicated guide File LIC death / maturity claim.

PMVVY is shut. For a new senior (60+) seeking similar guaranteed income, the practical alternatives in 2026 are:

• Government-of-India-backed savings scheme, run by post offices and authorised banks.
• Interest: 8.2% p.a. for Q1 FY26 (revised quarterly by MoF) — paid quarterly to bank account.
• Tenure: 5 years (extendable by 3 years one-time).
• Maximum corpus: ₹30 lakh per senior citizen (limit raised in Budget 2023).
• Tax: interest is taxable; principal qualifies for §80C deduction up to ₹1.5 lakh.
• Open at any post office or authorised bank (SBI, PNB, BoB, Canara, etc.).
• Detailed guide: Open SCSS Senior Citizen Savings Scheme.

• Lifetime annuity plan (continues till death of pensioner; corpus returned to nominee on death).
• Available from age 40 onwards (so well within senior age range).
• Annuity rate: 6.8-7.5% p.a. depending on age at entry and option chosen (single life with corpus return is the most popular).
• Minimum purchase price: ₹2 lakh. No maximum cap.
• Buy at any LIC branch or licindia.in.
• Tax: annuity is taxable as “Income from Other Sources” but the corpus return at death to nominee is exempt.

• Market-linked pension product regulated by PFRDA.
• Returns: 8-12% historical (not guaranteed).
• Tax benefit: §80CCD(1B) — additional ₹50,000 deduction over and above §80C ₹1.5 lakh.
• On exit (after 60), 60% of corpus is tax-free lump sum, 40% must be used for annuity.
• For seniors, NPS Tier I is good for the tax benefit but less suited for “guaranteed income” — pair it with SCSS for stability.

• ₹30 lakh in SCSS → guaranteed 8.2% p.a. quarterly, max protection
• ₹15 lakh in LIC Saral Pension → guaranteed lifetime annuity ~7% p.a. monthly
• ₹5-10 lakh in NPS Tier I → tax break + market upside
• Emergency cash in savings + a small term deposit
• PMSBY + PMJJBY for low-cost insurance ₹4 lakh cover at ₹456/year — see Apply PMSBY + PMJJBY

+--------------------------------+-------------------------------------+
| Pension rate (locked at        | 7.4% p.a. (final cohort) — verify   |
| purchase, varies by cohort)    | on your policy bond                 |
+--------------------------------+-------------------------------------+
| Tenure                         | 10 years                            |
+--------------------------------+-------------------------------------+
| Maximum purchase price         | ₹15 lakh per senior citizen         |
+--------------------------------+-------------------------------------+
| Pension frequency choices      | Monthly / Quarterly / Half-yearly / |
|                                | Annually                            |
+--------------------------------+-------------------------------------+
| Loan eligibility               | After 3 years; up to 75% of corpus  |
| Loan interest rate             | ~9.5% p.a. (LIC's prevailing rate)  |
+--------------------------------+-------------------------------------+
| Surrender (early exit)         | Allowed after 3 years for self /    |
|                                | spouse critical illness — surrender |
|                                | value ~98% of purchase price        |
+--------------------------------+-------------------------------------+
| At maturity (10 years)         | Corpus + final pension returned     |
+--------------------------------+-------------------------------------+
| At death during tenure         | Corpus paid to nominee              |
+--------------------------------+-------------------------------------+
| Nominee change form (Form 3756)| ~₹50 stamp duty (state-dependent)   |
+--------------------------------+-------------------------------------+
| Duplicate policy bond          | ~₹200 + stamp                       |
+--------------------------------+-------------------------------------+
| RTI to PIO LIC                 | ₹10 by IPO. BPL = free.             |
+--------------------------------+-------------------------------------+

• Pension not credited on schedule — usually a bank-side issue: closed account, IFSC change after merger, wrong NEFT mandate. Walk into LIC branch with new cancelled cheque + Form 3756.
• KYC not updated — LIC requires re-KYC every 3 years. Pension is not credited until KYC is current.
• Policy bond lost — needed for any servicing transaction. Apply for a duplicate (Form 3781) with indemnity.
• Spousal continuation confusion — PMVVY is a single-life policy. If the policyholder dies, corpus goes to nominee — there is no automatic spouse pension continuation like in some old LIC products. The nominee can reinvest the corpus but pension as a “joint life” doesn't apply.
• Loan amount calculation dispute — the 75% of corpus formula can vary if interest has accrued; LIC's quote may differ from your expectation. Ask for the workings in writing.
• Maturity discharge delay — if the maturity falls on a Sunday/holiday, processing can take 5-10 extra days. File the discharge form 30 days before maturity to be safe.
• TDS deducted on pension — pension is taxable as income from other sources, and LIC may deduct TDS once the year's payments cross the applicable threshold; the exact rate and threshold follow the current income-tax rules. Check your Form 26AS and claim any refund in your ITR.

• Walk into the branch with policy bond + ID. Meet the Senior Branch Manager for any service issue.
• Best for: NEFT mandate change, KYC update, loan, nominee change, duplicate bond, maturity discharge.

• Phone: 022-6827-6827.
• SMS: “LICHELP <policy number>” to 9222492224.
• Email: [email protected].
• Best for: status check, formal complaint registration with a ticket number.

• https://licindia.in → “Customer Service” → “Grievance Redressal”.
• Register with policy number; submit grievance with documents.
• SLA: 14 days.

• https://bimabharosa.irdai.gov.in — IRDAI's integrated grievance portal.
• Register and log a complaint against LIC; IRDAI tracks insurer's response with a 14-day SLA.

• https://www.cioins.co.in — 17 Insurance Ombudsmen across India by region.
• Eligible if claim/dispute < ₹50 lakh AND at least 30 days have passed since insurer's reply.
• No fee; binding award up to ₹50 lakh (G.S.R. 828(E), 9 November 2023).

• https://pgportal.gov.in → Ministry “Finance” → “Department of Financial Services” → category “Life Insurance / LIC”.

LIC of India is a public authority under §2(h) of the RTI Act 2005, as established for government-owned financial entities under Reserve Bank of India v. Jayantilal N. Mistry, (2016) 3 SCC 525, read with Section 2(h) substantially-financed coverage. Every LIC Zonal Office and the LIC Central Office at Yogakshema, Mumbai have a designated PIO.

RTI helps here when:

• Pension hasn't been credited for 2+ months and Customer Care has been silent — RTI to PIO LIC for the NEFT log + dealing officer's name.
• Loan amount sanctioned is lower than expected — RTI for the calculation sheet showing how 75% of corpus was computed.
• KYC was submitted 60 days ago but pension is still on hold — RTI for the KYC update log + officer responsible for delay.
• Maturity payout was less than expected — RTI for the break-up of corpus + final instalment + any TDS deducted.
• You want to confirm if your policy bond on LIC's records matches the bond in your hand — RTI for a certified true copy of the policy bond as held by LIC.

See the dedicated guide: RTI for LIC policy grievance — copy-ready template.

RTI does NOT help here when:

• You want to enrol in a new PMVVY — the scheme is closed since 31 March 2023; no PIO can re-open it.
• You want a higher pension rate than 7.4% — the rate is locked at purchase; RTI cannot revise it.
• You want to convert PMVVY into a joint-life with spouse mid-tenure — not allowed under scheme rules; RTI can confirm the rule but not change it.
• You want LIC to refund the TDS deducted from your pension — TDS is governed by the Income Tax Act, not LIC. Refund through ITR filing — see File ITR online.
• You want the Insurance Ombudsman award enforced faster — ombudsman awards are binding on insurer; if LIC delays, file a contempt application before the ombudsman, not an RTI.

Q. I bought PMVVY in 2018 at 8% p.a. Why is the 2022 cohort at 7.4%?
The pension rate was revised every fiscal year based on the prevailing 10-year G-sec yield. 2017-18: 8.0%; 2019-20: 8.0%; 2020-21: 7.4%; 2021-22 to 2022-23: 7.4%. Your locked-in rate is whatever was current on your purchase date — see your policy bond.

Q. Can I purchase PMVVY in 2026?
No — the scheme is closed for fresh enrolments since 31 March 2023. Use SCSS + LIC Saral Pension instead.

Q. My husband died — he was the PMVVY pensioner. Now what?
Pension stops on the date of death. As nominee, file the death claim at any LIC branch with original death certificate + policy bond + your KYC + cancelled cheque. The corpus (₹15 lakh or whatever was the purchase price) is paid to you within 30-60 days. You may then reinvest in SCSS / Saral Pension in your own name.

Q. I want to surrender PMVVY before 10 years. Can I?
Surrender is allowed only for critical illness of self or spouse (defined list of illnesses). Surrender value ~98% of purchase price. Otherwise the policy must run the full 10 years.

Q. Can I gift my PMVVY pension credit account to my son?
The pension credit must go to a bank account in the policyholder's name (single or joint). You cannot direct it to a third-party account. After receiving the pension, you can transfer to your son freely.

Q. Is PMVVY pension taxable?
Yes — taxable as “Income from Other Sources” in your ITR. LIC may deduct TDS once the year's pension crosses the applicable threshold under the current income-tax rules. File an ITR to claim any refund — see File ITR online.

Q. What happens at the end of 10 years — can the pension continue?
No — at maturity (year 10), the corpus + final instalment is returned. Pension stops. You can reinvest the corpus into SCSS, Saral Pension, or any other product. There is no auto-extension.

Q. I'm 75 now. Can I still take a loan against PMVVY?
Yes — the loan facility has no upper age limit; only the 3-year minimum holding period applies. Maximum loan 75% of corpus at ~9.5% p.a.

• Open SCSS Senior Citizen Savings Scheme — successor to PMVVY for new applicants
• File LIC death / maturity claim
• Apply PMSBY + PMJJBY — low-cost insurance combo
• File an insurance complaint at IRDAI Bima Bharosa
• RTI for LIC policy grievance — copy-ready template
• RTI in 12 simple steps — for first-time filers
• All Indian government helplines — one master directory
• RTI forms + state-wise fee chart
• The RTI Playbook

Last reviewed: 31 August 2026.