[Resolved]  Varishtha Pension Bima Yojana — amend exit option

I append below a copy of my appeal addressed to The Finance Minister for rexing the exit clause.
The contents are self explanatory. Many greivances against LIC will be solved just by exiting early from the scheme.I request all aggreived annuitants to endorse this move and make suitable appeals to the authorities.
THE APPEAL:
An appeal about Varishtha Pension Bima YojnaWednesday, 10 June, 2009 11:12 AM
From: "[protected]@yahoo.com" <[protected]@yahoo.com>To: [protected]@sansad.nic.in
Honorable Finance Minister,
Government of India,
Delhi





Sir,

Re: Varishtha Pension Bima Yojana (VPBY)- amendment





I appeal to you to have the VPBY amended to allow senior citizens to exit from the scheme earlier than the currently applicable period of 15 years.



The background and the justification for this appeal is given below:



(1) VPBY was introduced by NDA Govt. in 2003-04 in response to widespread representations of senior citizens to give them relief against the low interest rate regime prevailing at the time.



(2) The scheme of VPBY as introduced gave a pension of Rs 2000/ per month on one time payment of an approximate amount of Rs 2.5 Lakhs. As per the terms of LIC through which VPBY was implemented, the one time payment was blocked for life time of the investor and was to be paid only to the nominee.



(3) Again, representations were made against such harsh terms of poor returns and zero liquidity. The Government relented and introduced an “exit” option whereby the investor can exit the scheme after 15 years and obtain refund of the annuity amount in his lifetime. However, the return on investment was not increased. Many senior citizens, having no better option, subscribed to the scheme.



(4) Later, the UPA Govt. introduced SCSS ( Senior Citizens’ Savings Scheme-2004), which offered much better terms. The investment ceiling was raised to Rs15 Lakhs, and the blocking period was reduced to only 5 years ( with a provision to withdraw money earlier by sacrificing part of the return ). Simulaneously with introduction of SCSS, the VPBY was discontinued.



(5) But those who hurriedly invested in VPBY before introduction of SCSS got trapped in it, and are forced to wait for the long period of 15 years to exit from the scheme. It may be noted that there was no upper age limit to enter the scheme. This group, the undersigned included, is regreting, POSTE FACTO, having subscribed to VPBY. They may not live long enough to use their money. Their legal heirs will have to run around in the labyrinthine corridors of LIC to reclaim the money.



(6) I therefore, appeal to you to kindly look into this serious greivance of senior citizens and amend the scheme of VPBY so that those who have entered their seventies are allowed to exit from the scheme.



Thanking you in anticipation of positive action,

Yours faithfully

Ramesh H Vora, Vadodara.



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