New Delhi, Jan 24 (IANS): The Union Cabinet on Tuesday gave its post-facto approval for Varishtha Pension Bima Yojana 2017 (VPBY 2017) as a part of financial inclusion and social security programme.

"The scheme would be implemented through Life Insurance Corp (LIC) during the current financial year to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions," the Finance Ministry said in a statement.

The scheme would provide an assured pension based on a guaranteed rate of return of 8 per cent per annum for 10 years, with an option to opt for pension on a monthly, quarterly, half-yearly or annual basis.

"The differential return, i.e. the difference between the return generated by LIC and the assured return of 8 per cent per annum, would be borne by the government as subsidy on an annual basis," it added.

VPBY-2017 is proposed to be open for subscription for a period of one year from the date of launch.