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NPS subscribers can select annuity service provider

Six life insurers have been approved by IRDA for providing annuity services to the NPS subscribers

May 07, 2012 3:54 IST | India Infoline News Service

National Pension System (NPS) subscribers now have a choice of six annuity service providers from whom they can select their annuity schemes on exit from the NPS on attaining the age of 60.

According to a PFRDA (Pension Fund Regulatory and Development Authority) press release, sixlife insurers have been approved by IRDA (Insurance and Regulatory Development Authority) for providing annuity services to the NPS subscribers. The six insurers are: Life Insurance Corporation of India, SBI Life Insurance, ICICI Prudential Life Insurance, Bajaj Allianz Life Insurance, Star Union Dai-ichi Life Insurance and Reliance Life Insurance.

Under the provisions of the NPS, 60% of corpus accumulated at the time of exit—normally on attaining the age of 60—can be withdrawn. However, 40% corpus has to be utilised for purchasing an annuity from one of the six empanelled annuity service providers.

NPS subscribers can choose any of the six insurers and can also select one of the annuity schemes from amongst those being offered by them.

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