National Pension System (NPS): Pensioners can do this to get money hassle free from SBI Life, LIC, HDFC, others
At the time of exit from NPS for reasons other than the death of the subscriber, the subscriber is required to purchase an annuity providing for a monthly pension to the subscriber from an Annuity Service Provider empanelled with PFRDA
A subscriber can exit from National Pension System (NPS) only in accordance with PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 which are notified on 11 May 2015. At the time of exit from NPS for reasons other than the death of the subscriber, the subscriber is required to purchase an annuity providing for a monthly pension to the subscriber from an Annuity Service Provider empanelled with PFRDA.
In the context of India, annuities in simple terms, are financial instruments that offer a monthly/quarterly/annual pension at a guaranteed rate for the period you choose for a given purchase price. Pension Fund Regulatory and Development Authority (PFRDA) is a statutory body which is entrusted with the job of pension regulation in India.
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Annuity Service Providers are IRDA licensed and regulated Life Insurance companies, transacting annuity business in India and who are empanelled by PFRDA for servicing the annuity requirements of the NPS subscribers. At present, the following (12) ASPs are providing the Annuity services to NPS subscribers and the list of ASPs is as follows:
Name of Insurance companies
-- SBI Life Insurance Co. Ltd
-- Life Insurance Corporation of India (LIC)
-- Star Union Dai-ichi Life Insurance Co. Ltd
-- ICICI Prudential Life Insurance Co. Ltd
-- HDFC Life Insurance Co Ltd.
-- IndiaFirst Life Insurance Co Ltd
-- Edelweiss Tokio Life Insurance Co. Ltd
-- Bajaj Allianz Life Insurance Co Ltd.
-- Canara HSBC Oriental bank of Commerce Life Insurance co Ltd.
-- Kotak Mahindra Life Insurance Co Ltd.
-- Tata AIA Life Insurance Company Limited
-- Max Life Insurance Company Limited
These ASP’s are prudentially regulated and monitored by the Insurance Regulatory and Development Authority of India (IRDAI). Under the National Pension System (NPS), the subscriber has the option to choose the type of Annuity and the Annuity Service provider. The subscriber may choose the annuity type/scheme basing on his requirements from among the available schemes offered by the respective ASP’s.
NPS Withdrawal Corona
NPS account alert: Some great news for all National Pension System (NPS) accounts holders came last week for those who may have been worried about not having enough money in case they need it in an emergency in times of coronavirus pandemic. The Pension Regulatory Authority of India (PFRDA) has allowed partial withdrawals for account holder to fulfill financial needs in the wake of Covid-19 crisis.
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"In view of the decision of Government of India, which has declared COVID-19 as a pandemic, It has been decided to declare “COVID-19” as a critical illness which is life threatening in nature," a PFRDA release says.
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