Subscribers to the National Pension System (NPS) can now use the updated exit form that was released by the Pension Fund Regulatory and Development Authority (PFRDA) to apply for both an annuity and a lump sum payout. PFRDA provides digitally enabled exit alternatives to NPS subscribers via Aadhaar / Two Factor Authentication (2FA). The online/offline withdrawal form that NPS subscribers must complete and submit when they decide to leave the programme will henceforth be regarded as an annuity proposal form for the benefit of the subscribers.
Read More: FM Nirmala Sitharaman To Begin Pre-Budget Consultations From Today
The regulatory body has said in a statement that “PFRDA engaged with IRDAI on simplifying the process of issuing an Annuity by considering the NPS withdrawal form as the Annuity Proposal and the same was agreed by IRDAI after due consultation with the Insurance industry.”
Benefits:
According to PFRDA, there are a variety of advantages to both financial authorities working together for the benefit of subscribers and stakeholders, as will be explained below:
- Speedy issuance and ease of annuity issuing
- Lump sum payment and annuity issuing in parallel
- Payment of retirement income through annuities immediately following retirement, ensuring a steady stream of income for retirees.
- Ease of Income Support for Seniors.
- The linked stake holders’ ability to conduct business with ease.
Read More: Prices Of Edible Oil Fall In India Due To Slump In International Market
NPS exit form:
PFRDA has said that “All Subscribers are hereby informed that at the time of initiation of the exit request, the completely filled proposal form along with the specified supporting documents including KYC is to be uploaded in the respective CRA system through their login credentials. The nodal officers, POPs & NPST are advised to ensure the same for the benefit of Subscribers.”
“Based on the response and feedback on the common proposal from the stakeholders & subscribers, PFRDA proposes to make the upload of the Withdrawal form/document mandatory at a future date,” said the regulatory body.
