The Pension Fund Regulatory and Development Authority (PFRDA) has announced that subscribers of the National Pension System (NPS) will now be able to choose multiple annuity schemes from the same Annuity Service Provider (ASP) to optimize their retirement income.
This option will be available to subscribers who earmark an annuity corpus of more than Rs 10 lakhs, with Rs 5 lakhs utilized to buy each annuity scheme. The change is expected to benefit subscribers by providing them with a wider range of annuity options. The Central Recordkeeping Agency (CRA) has been advised to build the necessary system-level functionality to facilitate the implementation of this change.
Retirement Income Optimization through Multiple Annuities
पेंशन निधि विनियामक एवं विकास प्राधिकरण
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
CIRCULAR
Circular no: PFRDA/2023/14/SUP-ASP/02
10th May, 2023
To
All NPS Stake Holders
Subject: Retirement Income Optimization through Multiple Annuities
Under NPS, the immediate annuities are made available to the subscribers by Annuity Service Providers (ASPs) under the enabling provisions of Exit Regulations of PFRDA. At present, the subscribers are allowed to buy one annuity scheme from the ASP at the time of exit.
- In the interest of subscribers’ retirement income optimization and to provide them with a wider range of annuity options, PFRDA is pleased to inform that the choice of multiple annuities from the same ASP will be made available.
- The option of multiple Annuities shall be provided for those Subscribers who earmark the annuity corpus more than Rs 10 lakhs wherein Rs 5 lakhs utilized to buy each annuity scheme.
- In this regard, CRAs are advised to build the necessary system-level functionality to facilitate the implementation of this change. Until this feature is developed, ASPs can handle the requests for multiple annuities received from subscribers and provide the necessary information to CRA through Reverse Information Flow (RIF).
PFRDA believes that this change will greatly benefit subscribers by providing them with a wider range of annuity options and optimizing their retirement income.
Digitally signed by K MOHAN
GANDHI
Chief General Manager