The Pension Fund Regulatory and Development Authority (PFRDA) has given its nod to Shriram Life Insurance Company (SLIC) to become an annuity service provider under National Pension System (NPS). SLIC has been empanelled as an Annuity Service Provider by the regulator. In a statement, SLIC said that the empanelment will help the insurance company to manage the annuity component of the maturity proceeds under NPS.
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As per the statement, the PFRDA’s certification will help SLIC garner more NPS subscribers under its annuity plan. With close to 1.5 crore subscribers under NPS and with an AUM of more than Rs 7 lakh crores in the country, SLIC’s empanelment as ASP will help it mobilise 40% of the NPS maturity amount which will be open to investment in annuity schemes.
Immediate Annuity Plus, SLIC’s annuity plan, has options for NPS subscribers that offers flexible options for retirees to continue their lives in the same financial conditions as they did before.
The annuity premium mobilisation in India is above Rs 25,000 crores per year. As NPS subscriptions mature and subscribers retire, this opportunity will expand further. This will also enable customers to choose from an array of insurance providers who provide rewarding annuity plans according to their needs and lifestyle.
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Commenting on the PFRDA certification, Casparus Kromhout, MD & CEO, Shriram Life Insurance Company said, “Shriram Life has a well-priced immediate annuity product and a robust fund management framework. With these, we are gearing up to make the best use of this new opportunity. This also provides us with another avenue to provide holistic insurance solutions for our customers.”
Annuity Service Provider is an IRDA-registered insurance company empanelled by PFRDA for providing Annuity Services to NPS subscribers upon their exit from the system. ASPs will be responsible for managing the funds (allocated for buying annuity) and payment of the pension after a subscriber attains the age of 60.
