Functions
Exit from NPS-Annuity Service Provider (ASP)-Functions
The main functions of empaneled annuity service provider is as under:
a) To provide annuity payments to the subscribers at the time of exit from the National Pension System (NPS).
b) To provide minimum immediate annuity variants options as required by the Authority and to be able to provide any new variant as required by the Authority from time to time in the interest of subscribers in conformity with the Insurance Act, 1938 and the Insurance Regulatory and Development Authority Act, 1999, and the rules, regulations and guidelines made thereunder.
c) To provide monthly or any other periodical annuity payment to the subscriber for the annuity contract purchased by the subscriber under the NPS.
d) To handle the grievances and issues related to or arising out of the entering into the annuity contract with the subscribers under the NPS.
For detailed functions / duties and responsibilities of empaneled ASP, please refer to PFRDA (Exits and Withdrawal under National Pension System) Regulations 2015.
Types of Annuity
Annuity schemes under the National Pension System (NPS) are offered by Annuity Service Providers (ASPs) that are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and are empaneled with the Pension Fund Regulatory and Development Authority (PFRDA).
It is crucial for NPS subscribers to understand the different types of annuity options before making a purchase decision. Annuities provide a regular monthly pension after retirement, ensuring financial security throughout life.
Below are the commonly available immediate annuity options:
- Annuity for Life:
This option pays a fixed annuity to the subscriber for life. After the death of the annuitant, the policy terminates, and no further benefits are payable.
- Annuity for Life with Return of Purchase Price (RoP) on Death:
This annuity option pays a regular pension for life. Upon the death of the annuitant, the purchase price is returned to the nominee, after which the policy terminates.
- Annuity for Life with 100% Annuity Payable to Spouse on Death of Annuitant:
In this option, annuity payments continue as long as either the annuitant or the spouse is alive. Upon the death of the primary annuitant, the spouse receives 100% of the annuity for life. Once both passes away, the annuity payments cease.
- Annuity for Life with 100% Annuity Payable to Spouse on Death of Annuitant with RoP
This annuity is payable as long as at least one of the annuitants (subscriber or spouse) is alive. After both have passed away, 100% of the purchase price is returned to the nominee.
- NPS – Family Income Option
This is a unique annuity plan where annuity payments are made to the subscriber and their spouse during their lifetimes. After their demise, the annuity continues to the subscriber’s mother, and subsequently to the father. Upon the death of the last surviving family member, the purchase price is refunded to the nominee or legal heir.
Important Notes:
- Age criteria, annuity premium rates, and monthly/periodic pension amounts may vary across Annuity Service Providers (ASPs).
- Subscribers are advised to compare annuity rates and terms offered by different ASPs before making a decision.
Check Current Annuity Rates:
Empanelment of ASPs
Life Insurance Companies registered and regulated by the Insurance Regulatory and Development Authority(‘IRDA’) may apply to act as an empaneled Annuity Service Providers (ASP) with the PFRDA to offer various types of immediate annuities to the subscribers at the time of exit from National Pension System (NPS).
For details on the eligibility criteria, duties, and responsibilities for any applicant to act as an empaneled ASP, you may please refer to to Chapter IV of PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, and amendments thereof.
How to Apply for ASP Empanelment?
Interested and eligible Life Insurers may submit their applications as per the Application Form along with the documentary proof(s) with respect to the details furnished in the Application Form. Application Form for empanelment shall be submitted to PFRDA, clearly super scribing the envelope as:
“Empanelment of Annuity Service Provider for providing annuity services to subscribers under the National Pension System (‘NPS’)”
The Bottom Left corner of the outer cover should carry the full name, address, telephone nos., e-mail ID, etc. of the Company submitting the Application Form.
Submission Address:
The sealed envelope containing the application should be addressed to:
The Head of the Department
Regulation (Process Management) Department - Exit/ASP
Pension Fund Regulatory and Development Authority (PFRDA)
E-500, Tower E, 5th Floor, World Trade Centre,
Nauroji Nagar, New Delhi –110029
For the Application Form for empanelment of Annuity Service Provider for providing the annuity services to subscribers under the National Pension System (‘NPS’) click here.
Important Notes for Applicants:
Before applying as Annuity Service Provider (ASP), applicants are advised to carefully read the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, and amendments thereof, and ensure full compliance with all relevant IRDAI regulations and statutory guidelines.
Empanelment renewal
Annuity Service Providers (ASPs) empaneled with the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System (NPS) must periodically renew their empanelment to continue offering annuity services to NPS subscribers.
Renewal Process as per Regulation 20(2)
According to Regulation 20(2) of the PFRDA (Exits and Withdrawals under NPS) Regulations, 2015, and subsequent amendments:
- An empaneled ASP must submit an application for renewal to keep their empanelment in force.
- The application must be submitted within 90 days before the completion of five years from the date of:
- First empanelment, or
- Last successful payment of the renewal fee accepted by PFRDA.
Renewal Fee and Payment details
To maintain empanelment, the ASP must:
- Pay a renewal fee of INR 25,000, plus applicable taxes and levies.
- Submit the payment and renewal application in the specified format as prescribed by PFRDA.
Apply for Renewal of Empanelment
To apply for continuation of your empanelment as an Annuity Service Provider under NPS:
Click here to apply