The Pension Fund Regulatory and Development Authority (PFRDA) on July 27, 2023, issued a notification regarding Clarification that the selection of Annuity Service Provider (ASP) is the individual choice to be exercised by Subscribers upon exit from NPS and no Additional Charges or Intermediation Expenses are payable by subscribers under NPS while opting for or purchasing an annuity from any empanelled ASP.
At the time of exit from NPS, an individual subscriber in terms of Section 20(2)(h) and Regulation of the PFRDA (Exits and Withdrawals from National Pension System) Regulations, 2015 (Exit Regulations) is mandatorily required to purchase an annuity that provides a monthly or periodical annuity (pension), as specified in the said regulations from an ASP empanelled with the Authority, In certain situation, limited exemption has been allowed by the Authority, from requirement of purchase of an annuity.
ASPs are to take notice of the stipulations aforementioned and ensure compliance as required. These shall form part of and be included in the half-yearly supervisory compliance of ASPs effective from September 01, 2023.
[Notification No. PFRDA/2023/14/SUP-ASP /03]
