Two new pension schemes unveiled

The person availing of this scheme will get a monthly return in the form of pension for life. Upon demise, the initial amount deposited will be returned to his/her spouse or nominee in the policy. The minimum and maximum monthly pensions proposed under the scheme are Rs 250 and Rs 2,000 per month. The scheme would start from the following month the person deposits the lumpsum amount. The difference between the actual yield earned by LIC on the funds invested and the assured return of 9 per cent will be reimbursed by the government to LIC annually.

The other new restructured pension scheme will apply only to new entrants to government services, except the armed forces. The scheme will also be available, on a voluntary basis, to all employers for their employees and self employed. This scheme will be on the basis of defined contribution shared equally between government and employees (in case of government employees). There will be no contribution from government in case of non-government employees. The new scheme will be portable thus allowing transfer of the benefits in case of change of employment.