The Pension Fund Regulatory and Development Authority (PFRDA) on February 22, 2023, issued a notification regarding the mandatory upload of Withdrawal, and KYC documents to enable Parallel Processing of Exit and Annuity for the benefit of NPS Subscribers.
PFRDA in regulatory collaboration with IRDAI had simplified the process of buying Annuities where Annuity Service Providers (ASPs) shall use the NPS withdrawal form submitted at the time of exit by the Subscribers at nodal officers / POPs for issuing Annuity. ASPs are Life Insurance Companies regulated by IRDAI and impaneled with PFRDA to serve NPS Subscribers and secure their old age with a regular stream of periodical income.
The joint proposal for Exit from NPS and for buying the annuity from ASP facilitates parallel processing of Lump sum component and Annuity due to which the time taken by ASPs while issuing Annuity Policies is significantly reduced which results in faster Subscriber servicing and timely Annuity issuance.
In the interest of Subscribers and to benefit them with the timely payment of annuity income, uploading the documents shall be mandatory with effect from April 01, 2023.
The Subscribers and the associated nodal officers/POPs/ Corporate need to ensure that the documents uploaded in the respective CRA user interface and the documents thus uploaded are to be legible.
The process flow is provided in the annexure attached to the document for reference.
[Notification No. PFRDA/2023/09/SUP-ASP/01]
