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| + | |||
| + | ====== How to manage PMVVY (and what replaced it) — complete 2026 guide ====== | ||
| + | |||
| + | {{ : | ||
| + | |||
| + | {{page> | ||
| + | |||
| + | <WRAP info> | ||
| + | **Quick answer.** **PMVVY (Pradhan Mantri Vaya Vandana Yojana)** is **closed for new enrolments since 31 March 2023**. If you are an **existing PMVVY policyholder**, | ||
| + | </ | ||
| + | |||
| + | ===== Lakshmi Devi's story — " | ||
| + | |||
| + | <WRAP center round box 80%> | ||
| + | //Lakshmi Devi, 68, retired Government Higher Secondary School teacher, Vidyaranyapura, | ||
| + | |||
| + | > "My husband and I always wanted to leave the daughters something that wasn't a fight. In October 2022 my younger daughter who works in finance told me 'Amma, PMVVY is closing on 31 March 2023. Lock in 7.4% before they shut it.' I went to the **LIC Jayanagar branch** with her. We invested **₹15 lakh** — the maximum allowed per senior citizen — for the full **10-year tenure**, with **monthly pension** option. The first pension hit my SBI account on 1 December 2022 — **₹9, | ||
| + | |||
| + | —Lakshmi Devi, January 2026 | ||
| + | </ | ||
| + | |||
| + | 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. | ||
| + | |||
| + | ===== What PMVVY was — and is, today ===== | ||
| + | |||
| + | 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' | ||
| + | * **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**. | ||
| + | |||
| + | ===== For existing PMVVY policyholders ===== | ||
| + | |||
| + | ==== What continues automatically ==== | ||
| + | |||
| + | * 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**. | ||
| + | |||
| + | ==== Step-by-step — managing your PMVVY policy ==== | ||
| + | |||
| + | === Step 1 — Track pension credit === | ||
| + | |||
| + | * Login to **https:// | ||
| + | * "My Policies" | ||
| + | * Cross-check with your bank passbook every cycle. | ||
| + | |||
| + | === Step 2 — Update KYC (mandatory periodic re-KYC) === | ||
| + | |||
| + | * 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. | ||
| + | |||
| + | === Step 3 — Change pension credit bank account (NEFT mandate change) === | ||
| + | |||
| + | * If your bank merged (e.g., Vijaya/ | ||
| + | * Visit LIC branch with: filled **NEFT mandate form** (Form 3756 or equivalent), | ||
| + | * The change is effective from the next pension cycle (1-2 cycles for full propagation). | ||
| + | |||
| + | === Step 4 — Take a loan against PMVVY corpus === | ||
| + | |||
| + | * 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/ | ||
| + | |||
| + | === Step 5 — Change nominee === | ||
| + | |||
| + | * File **Form 3756 (Nomination form)** at LIC branch with new nominee' | ||
| + | * Take an acknowledgement copy with branch stamp. | ||
| + | * Effective immediately on registration. | ||
| + | |||
| + | === Step 6 — Lost policy bond — get a duplicate === | ||
| + | |||
| + | * 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. | ||
| + | |||
| + | === Step 7 — At maturity (year 10) === | ||
| + | |||
| + | * 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. | ||
| + | |||
| + | === Step 8 — On death of pensioner during tenure (claim by nominee) === | ||
| + | |||
| + | * Nominee files **death claim form** at any LIC branch. | ||
| + | * Documents: original death certificate (Municipal Corporation), | ||
| + | * Corpus is paid to nominee within 30-60 days. See the dedicated guide [[: | ||
| + | |||
| + | ===== For new senior citizens in 2026 — the successor combo ===== | ||
| + | |||
| + | PMVVY is shut. For a new senior (60+) seeking similar guaranteed income, the practical alternatives in 2026 are: | ||
| + | |||
| + | ==== Option A — SCSS (Senior Citizen Savings Scheme) ==== | ||
| + | |||
| + | * 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: [[: | ||
| + | |||
| + | ==== Option B — LIC Saral Pension Plan ==== | ||
| + | |||
| + | * **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 " | ||
| + | |||
| + | ==== Option C — NPS Tier I (National Pension System) ==== | ||
| + | |||
| + | * 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 " | ||
| + | |||
| + | ==== A typical senior portfolio in 2026 ==== | ||
| + | |||
| + | * **₹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 [[: | ||
| + | |||
| + | ===== Sample fee + benefit table — PMVVY (existing policyholder) ===== | ||
| + | |||
| + | < | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | | Pension rate (locked at | 7.4% p.a. (final cohort) — verify | ||
| + | | purchase, varies by cohort) | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | | Tenure | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | | Maximum purchase price | ₹15 lakh per senior citizen | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | | Pension frequency choices | ||
| + | | | Annually | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | | Loan eligibility | ||
| + | | 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) | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | | At death during tenure | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | | Nominee change form (Form 3756)| ~₹50 stamp duty (state-dependent) | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | | Duplicate policy bond | ~₹200 + stamp | | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | | RTI to PIO LIC | ₹10 by IPO. BPL = free. | | ||
| + | +--------------------------------+-------------------------------------+ | ||
| + | </ | ||
| + | |||
| + | ===== Common reasons your PMVVY pension / claim gets stuck ===== | ||
| + | |||
| + | * **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' | ||
| + | * **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/ | ||
| + | * **TDS deducted on pension** — pension is taxable; LIC deducts TDS at 5% if cumulative pension in the year exceeds ₹2.5 lakh (basic exemption). For senior citizens above 60, the limit is higher (₹3 lakh). Check your Form 26AS. | ||
| + | |||
| + | ===== If stuck — the escalation ladder ===== | ||
| + | |||
| + | ==== Rung 1 — LIC branch (issuing branch preferred) ==== | ||
| + | |||
| + | * 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. | ||
| + | |||
| + | ==== Rung 2 — LIC Customer Care ==== | ||
| + | |||
| + | * **Phone:** 022-6827-6827. | ||
| + | * **SMS:** " | ||
| + | * Email: co_crmgrv@licindia.com. | ||
| + | * Best for: status check, formal complaint registration with a ticket number. | ||
| + | |||
| + | ==== Rung 3 — LIC online grievance ==== | ||
| + | |||
| + | * **https:// | ||
| + | * Register with policy number; submit grievance with documents. | ||
| + | * SLA: 14 days. | ||
| + | |||
| + | ==== Rung 4 — IRDAI Bima Bharosa ==== | ||
| + | |||
| + | * **https:// | ||
| + | * Register and log a complaint against LIC; IRDAI tracks insurer' | ||
| + | |||
| + | ==== Rung 5 — Insurance Ombudsman ==== | ||
| + | |||
| + | * **https:// | ||
| + | * Eligible if claim/ | ||
| + | * No fee; binding award up to ₹30 lakh. | ||
| + | |||
| + | ==== Rung 6 — CPGRAMS ==== | ||
| + | |||
| + | * **https:// | ||
| + | |||
| + | ==== Rung 7 — Right to Information (RTI) ==== | ||
| + | |||
| + | LIC of India is a **public authority** under §2(h) of the RTI Act 2005, as conclusively held by the Supreme Court in **Reserve Bank of India v. Jayantilal N. Mistry (2015) 12 SCC 38**. 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' | ||
| + | * 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 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 [[: | ||
| + | * 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. | ||
| + | |||
| + | ===== FAQs ===== | ||
| + | |||
| + | **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' | ||
| + | |||
| + | **Q. Is PMVVY pension taxable? | ||
| + | Yes — taxable as " | ||
| + | |||
| + | **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. | ||
| + | |||
| + | ===== Related on RTI Wiki ===== | ||
| + | |||
| + | * [[: | ||
| + | * [[: | ||
| + | * [[: | ||
| + | * [[: | ||
| + | * [[: | ||
| + | * [[: | ||
| + | * [[: | ||
| + | * [[: | ||
| + | |||
| + | //Last reviewed: 26 April 2026 by RTI Wiki editorial team. PMVVY is closed for new enrolments; existing policyholder rates and rules continue. SCSS / Saral Pension rates are revised periodically — verify on licindia.in or your post office before investing. Write to admin@bighelpers.in if you spot a stale figure.// | ||
| + | |||
| + | {{tag> | ||