NPS rules change: IRDAI and PFRDA have agreed to simplify the process of issuing annuity to NPS subscribers.
NPS rules change : Now it has become easy for you to get National Pension System i.e. NPS money. Insurance Regulatory and Development Authority ( IRDAI ) and Pension Regulatory and Development Authority ( PFRDA ) have agreed to simplify the process of issuing annuity to NPS subscribers . Now this will be done using only one withdrawal form . This means that NPS subscribers will not have to fill a separate proposal form in order to opt for annuity. IRDAI has made this announcement for annuity products through a circular.
This is the current system
Currently NPS pensioners have to submit a ‘detailed’ exit form to PFRDA at the time of withdrawal. Once they have decided on their preferred annuity plan, they should completely fill the proposal form provided by the insurance companies.
According to a PFRDA circular dated November 14, 2022, the benefits accruing to its subscribers and stakeholders have multiplied manifold with the combined action of the two financial regulators.
Now there will be these benefits
- Getting annuity has become easier and it will take less time to issue
- Parallel processing of lump sum payment and release of annuity
- Payment of retirement income by way of annuity immediately after the subscriber retires and ensuring regular income for the retiree
- Easy old age income support
- Ease of working for relevant stakeholders
Where will the form be uploaded
According to the PFRDA circular dated November 14, 2022, a completely filled exit form along with all necessary documents including KYC will have to be uploaded to the respective CRA system while requesting the exit.
