NPS subscribers given wider choice in annuity schemes

Subscribers to the National Pension Scheme will now have a choice of six annuity service providers to take care of their annuity schemes on the mandatory exit from the NPS at the age of 60.

The Pension Fund Regulatory Development Authority (PFRDA) has empanelled six life insurers approved by the Insurance and Regulatory Development Authority (IRDA) for providing annuity services to the NPS subscribers, according to an official release from New Delhi on Friday.

These are state-owned Life Insurance Corp and SBI Life Insurance, along with ICICI Prudential Life Insurance Co, Bajaj Allianz Life Insurance Co, Star Union Dai-ichi Life Insurance Co and Reliance Life Insurance Co.

The NPS was made available to all Indian citizens from 2009. After the age of 60 years, a person can exit NPS with a maximum of 60 per cent of his corpus; the remaining funds would have to be invested in an annuity plan. Now, NBS subscribers have a wider choice of the plan provider.

With this, ''the PFRDA has taken an important step towards providing an exit route to the subscribers'', the release said.