NPS rules change: Now it has become easy for you to get the money of National Pension System i.e. NPS. The Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Regulatory and Development Authority (PFRDA) have agreed to simplify the process of issuing annuities 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 for opting for annuity. IRDAI has announced this for annuity products through a circular.
This is the current system
Presently 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 joint action of the two financial regulators has multiplied the benefits to its customers and stakeholders.
Now these will be the benefits
- Getting annuity has become easier and it will take less time to issue
- Parallel process of lump sum payment and release of annuity
- Payment of retirement income in the form 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
As per PFRDA’s circular dated November 14, 2022, while requesting exit, completely filled exit form along with all necessary documents including KYC will have to be uploaded in the respective CRA system.
