Investment needs are unique to each and every Individual. No single financial plan would be suitable to everyone. It is necessary, that awareness is created. Such awareness ,created and understood , is the Individual’s responsibility, who undertake decisions and apply the same to their situations. This website or any Individual or entity related with this website , would not take or assume any liability towards the decisions undertaken by such individuals. Individuals are encouraged to make inquiries, validate such information, from available resources on both online and offline content , before undertaking any financial decisions. This website does not charge any fees for such services rendered. Information sought and sharing of such information is permissions based . The website focuses only on the NPS All Citizen model and the Corporate model only as more awareness needs to be created on this models. Government model and the erstwhile NPS swavalamban model (Now Atal Pension Yojana ) are already being undertaken by the Government agencies through their own network and marketing channels.
At the time of exit from NPS for reasons other than death of the subscriber, the subscriber is required to purchase an annuity providing for a monthly pension to the subscriber from an Annuity Service Provider empanelled with PFRDA. In Indian context, annuities in simple terms, are financial instruments which offer a monthly/quarterly/annual pension at a guaranteed rate for the period you choose for a given purchase price. Under National Pension System (NPS), the subscriber has the option to choose the type of Annuity and the Annuity Service provider .Annuity Service Providers are IRDA licensed and regulated Life Insurance companies, transacting annuity business in India and who are empanelled by PFRDA for servicing the annuity requirements of the NPS subscribers are as follows :
At the time of withdrawal from NPS, the subscriber will have an option to purchase annuity online. The following online facilities will be given to the subscribers:
Selection of Annuity Service Provider (ASP) – the subscriber can choose from the list of selected ASPs
Selection of annuity scheme – the subscriber will have an option to choose from the annuity schemes available Option to change ASP & scheme (if already registered) before attaining retirement age
The entire transfer of amount between NPS System and ASP will take place without any manual intervention
Types of Annuities: There are different kinds of immediate annuities paying for monthly pension are available in the market. The following are put across for the information of the subscriber.
|Serial No||Type of the annuity selected by Subscriber||In the event of Death , the following will apply to the subscriber||Comments|
|1||Annuity for life||Payment of annuity ceases|
|2||Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter||1. On death during the guarantee period – annuity is paid to the nominee till the end of the guaranteed period after which the same ceases
2. On death after theguarantee period – payment of annuity ceases
|3||Annuity for life with return of purchase price on death||Payment of annuity ceases and the purchase price is returned to the nominee|
|4||Annuity for life increasing at simple rate of 3% p.a.||Payment of annuity ceases|
|5||Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant||Payment of annuity ceases and 50% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, payment of annuity will cease after the death of the annuitant|
|6||Annuity for life with a provision for 100% of the annuity to the spouse of the annuitant for life on death of the annuitant||Payment of annuity ceases and 100% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, payment of annuity will cease after the death of the annuitant|
|7||Annuity for life with a provision for 100% of the annuity payable to the spouse of the annuitant for life on death of the annuitant, with return of purchase price on the death of last survivor||Payment of annuity ceases and 100% of the annuity is paid to the surviving named spouse during his/her life time and purchase price is returned to the nominee after the death of the spouse. If the spouse predeceases the annuitant, payment of annuity will cease after the death of the annuitant and purchase price is paid to the nominee.|
Note : This website information would focus only on the All Citizen model and the corporate model.