Sunday, 6 May 2012

Free to Choose Annuity Service for NPS Subscribers

Pension Fund Regulatory Authority (PFRDA) now allows its subscribers of National Pension System (NPS) to choose their Annuity service themselves from 6 IRDA approved Life Insurance Companies. This may be called Annuity Service Portability. The NPS Subscribers can choose their Annuity service among the following 6 major life insurance companies, when they attain the age of 60 years (the pensionable age)

1. Life Insurance Corporation of India

2. SBI Life Insurance Co. Ltd.

3. ICICI Prudential Life Insurance Co. Ltd.

4. Bajaj Allianz Life Insurance Co. Ltd.

5. Star Union Dai-ichi Life Insurance Co. Ltd.

6. Reliance Life Insurance Co. Ltd.

NPS allows 60% of the accumulated amount can be withdrawn when the person attain the age of 60 years and the remaining 40% of the corpus must invest in any annuity sachems to get regular income as pension. Now this annuity schemes can select by the subscribers as per their choice from any of the above 6 life insurance companies.

This is a good movement from the side of PFRDA which allows its subscribers to choose their annuity service provider as per their own decision and convenience.

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