NPS Exit and purchase of Annuity – Clarification issued by PFRDA
NPS Exit and purchase of Annuity – Clarification issued by PFRDA in respect of interim arrangement for the purpose of buying annuity from the NPS maturity amount
In the case of pre-mature exit by NPS Subscriber, any annuity scheme provided by Annutiy Service provider that covers the spouse of NPS subscriber can be purchased
Subject: Clarifications on Settlement of Claims Relating To Exits, Involving Purchase of Annuities.
|Existing Provisions||Removal of difficulty|
|1.||Regulation 3 (b) applicable in case of pre-mature exit (to extract proviso from regulations)
In place of default annuity scheme
Any annuity scheme provided by the Annuity Service Provider such that scheme shall mandatorily cover the spouse of the subscriber.
|2.||Regulation 3 (c) applicable in case of death (to extract proviso from regulations)||The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.|