SUBSCRIBERS TO NPS TO NOW HAVE CHOICE OF ANNUITY SERVICE

PFRDA takes Important Step towards Providing an Exit Route to theSubscribers

Subscribers to the National Pension System (NPS) will now have a choice of AnnuityService Providers, from whom they can choose their annuity schemes ontheir exit from NPS on attainment of 60 years of age. Pension Fund Regulatory and Development Authority (PFRDA) has empanelled the following six IRDA approvedlife insurance companies for providing annuity services to the subscribers of National Pension System (NPS).

1. Life Insurance Corporation of India

2. SBI Life Insurance Co. Ltd.

3. ICICI Prudential Life Insurance Co. Ltd.

4. Bajaj Allianz Life Insurance Co. Ltd.

5. Star Union Dai-ichi Life Insurance Co. Ltd.

6. Reliance Life Insurance Co. Ltd.

under the provisions of NPS, a maximum of 60% of corpus accumulated at thetime of exit, normally on the attainment of 60 years of age, can be withdrawn but a minimum of 40% corpus has to be utilized for purchasing an annuity from one ofthe empanelled annuity service providers. Subscriber can choose from any of thesix above mentioned annuity service providers and can also make their choice ofthe annuity scheme from amongst the schemes being offered by these providers.

With the above empanelment, PFRDA has taken an important step towards providing an exit route to the subscribers.

Source:pib : 

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