Functions
Exit from NPS-Annuity Service Provider (ASP)-Functions
The main functions of empaneled annuity service provider is as under:
a) To provide annuity payments to the subscribers at the time of exit from the National Pension System (NPS).
b) To provide minimum immediate annuity variants options as required by the Authority and to be able to provide any new variant as required by the Authority from time to time in the interest of subscribers in conformity with the Insurance Act, 1938 and the Insurance Regulatory and Development Authority Act, 1999, and the rules, regulations and guidelines made thereunder.
c) To provide monthly or any other periodical annuity payment to the subscriber for the annuity contract purchased by the subscriber under the NPS.
d) To handle the grievances and issues related to or arising out of the entering into the annuity contract with the subscribers under the NPS.
For detailed functions / duties and responsibilities of empaneled ASP, please refer to PFRDA (Exits and Withdrawal under National Pension System) Regulations 2015.
Types of Annuity
Annuity schemes under the National Pension System (NPS) are offered by Annuity Service Providers (ASPs) that are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and are empaneled with the Pension Fund Regulatory and Development Authority (PFRDA).
It is crucial for NPS subscribers to understand the different types of annuity options before making a purchase decision. Annuities provide a regular monthly pension after retirement, ensuring financial security throughout life.
Below are the commonly available immediate annuity options:
- Annuity for Life:
This option pays a fixed annuity to the subscriber for life. After the death of the annuitant, the policy terminates, and no further benefits are payable.
- Annuity for Life with Return of Purchase Price (RoP) on Death:
This annuity option pays a regular pension for life. Upon the death of the annuitant, the purchase price is returned to the nominee, after which the policy terminates.
- Annuity for Life with 100% Annuity Payable to Spouse on Death of Annuitant:
In this option, annuity payments continue as long as either the annuitant or the spouse is alive. Upon the death of the primary annuitant, the spouse receives 100% of the annuity for life. Once both passes away, the annuity payments cease.
- Annuity for Life with 100% Annuity Payable to Spouse on Death of Annuitant with RoP
This annuity is payable as long as at least one of the annuitants (subscriber or spouse) is alive. After both have passed away, 100% of the purchase price is returned to the nominee.
- NPS – Family Income Option
This is a unique annuity plan where annuity payments are made to the subscriber and their spouse during their lifetimes. After their demise, the annuity continues to the subscriber’s mother, and subsequently to the father. Upon the death of the last surviving family member, the purchase price is refunded to the nominee or legal heir.
Important Notes:
- Age criteria, annuity premium rates, and monthly/periodic pension amounts may vary across Annuity Service Providers (ASPs).
- Subscribers are advised to compare annuity rates and terms offered by different ASPs before making a decision.
Check Current Annuity Rates:
Renewal of Empanelment
Application to Keep Empanelment in Force as an Annuity Service Provider (‘ASP’)
As per Regulation 20(2) of Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, and amendment thereof, ‘An Annuity Service Provider who has been granted a certificate of empanelment, to keep such empanelment in force, shall pay a fee of rupees twenty-five thousand within ninety days before the expiry of five years from the date of first empanelment or date of the payment of fee last accepted by the Authority, by way of making an application in the specified form to the Authority.’
In compliance with the provisions of Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, and amendment thereof, ASP willing to keep the empanelment in force shall make its application along with the payment of rupees twenty-five thousand plus applicable taxes and levies thereon, to the Authority.
For the Application to keep Empanelment in force as an Annuity Service Provider (‘ASP’):
Click here to apply