Union Cabinet has given its approval to the following for the welfare of and to enable old age income security for Senior Citizens:
As per the approval, the scheme is extended up to 31 March 2023 for a further period of three years beyond 31 March 2020.
It also allowed initially an assured rate of return of 7.40% per annum for the year 2020-21 per annum and thereafter to be reset every year.
Annual reset of the assured rate of interest with effect from 1 April of the financial year in line with the revised rate of returns of Senior Citizens Saving Scheme (SCSS) up to a ceiling of 7.75% with a fresh appraisal of the scheme on breach of this threshold at any point.
It also approved the expenditure to be incurred on account of the difference between the market rate of return generated by LIC (net of expenses) and the guaranteed rate of return under the scheme.
The extension also includes capping Management expenses at 0.5% p.a. of funds of the scheme for the first year of scheme in respect of new policies issued and thereafter 0.3% p.a. for the second year onwards for the next 9 years.
