New Delhi, July 19: The government on Friday indicated that LIC's pension scheme for senior citizens may be reviewed after three months but assured the insurer of financial support for providing an attractive 9 per cent return. "The Varishtha Pension Bima Yojana may be reviewed after three months," Minister of State for Finance Anandrao Adsul said on the sidelines of a prize distribution function.
He did not say how the public has responded to the pension scheme that offers 9 per cent return to citizens above 55 years of age; the scheme was launched only four days ago by Prime Minister Atal Bihari Vajpayee.
Analysts have voiced concern about the scheme that offers such a high rate at a time when yield on government papers was only 6 per cent.
Seeking to allay such apprehensions, Adsul said, "We have made an assessment before launching the scheme."
"Government will provide whatever funds that are required to bridge the gap between the 9 per cent return and the yield on investment made by LIC. Just as in the case of UTI, government will provide the funds to LIC as and when they are required," he said. Bureau Report