NPS: Insurance regulator eases rules for pensioners : The Tribune India

PTI

New Delhi, September 13

Insurance regulator Irdai on Tuesday stated it has achieved away with the requirement of submitting a separate kind to purchase annuity from NPS proceeds on the time of retirement.

Insurance Regulatory and Development Authority of India (Irdai) stated it’s geared toward offering ease of doing business in insurance trade and for safety of pursuits of policyholders.

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At current, NPS retirees need to submit an exit kind to PFRDA and a proposal kind to insurers on the time of superannuation

Now, the exit type of NPS shall be handled as proposal kind for buying annuity, thereby lowering the time and efforts of senior residents in addition to insurers

“In this direction, to bring ease of living for senior citizens, Irdai has relaxed the requirement of submitting separate proposal form for taking the immediate annuity products from proceeds of National Pension System (NPS),” Irdai stated in a round.

At current, NPS retirees need to submit an exit kind to PFRDA and a proposal kind to insurers on the time of superannuation. Now, the exit type of NPS shall be handled as proposal kind for buying annuity, thereby lowering the time and efforts of senior residents in addition to insurers, Irdai stated.

The Annuity Service Providers (ASPs) are insurance corporations regulated by Irdai and empanelled by the PFRDA to offer the annuity to the NPS subscribers from the bouquet of annuities provided by them.

They are tasked to offer a month-to-month annuity pension to the subscribers. The Pension Fund Regulatory and Development Authority (PFRDA) has pension fund managers below the NPS who’re tasked to take a position the pension corpus of the subscribers in a even handed and prudent method.