Kolkata, July 14: Government has indicated that contributors to the newly launched Varishtha Pension Bima Yojana could withdraw the amount of contribution during their life time, a senior Life Insurance Corporation of India (LIC) official today said. "Only today there was a suggestion from the finance ministry that some relief might be granted to contributors in the form of allowing them to withdraw the money even during their life time, but this should not be before 15 years of commencement of the policy," regional manager M Kumar told reporters here.

Kumar also said that certain income tax relief might also be granted to the pensioners for amount of contribution and also the pension amount. "Matter has been referred to CBDT on whether there could be relief under section 80 CCC," he said. Incidentally, as per the existing rules of the Yojana, pension was to be paid during the lifetime of the pensioner and in the event of death of the pensioner, purchase price was to be paid to the nominee or legal heir.

There is no provision as of now for withdrawal of contribution amount during the lifetime of pensioner and also for any it relief.

Varishtha Pension Bima Yojana was today launched by Prime Minister Atal Bihari Vajpayee in New Delhi. It also launched simultaneously in Mumbai, Kolkata, Ahmedabad, Hyderabad, Bangalore and Patna.

Bureau Report