Retirement Income Optimization through Multiple Annuities
PFRDA circular PFRDA/2023/14/SUP-ASP/02 · 10 May 2023
PFRDA circular PFRDA/2023/14/SUP-ASP/02 · 10 May 2023
Summary
Check the official recordThe Pension Fund Regulatory and Development Authority (PFRDA) has introduced the option for National Pension System (NPS) subscribers to purchase multiple annuity schemes from a single Annuity Service Provider (ASP) at the time of exit. This initiative aims to provide subscribers with a wider range of annuity options to optimize their retirement income. The facility is available to subscribers with an annuity corpus exceeding Rs 10 lakhs, with a minimum requirement of Rs 5 lakhs for each annuity scheme purchased. Central Recordkeeping Agencies (CRAs) are required to develop the necessary system-level functionality. In the interim, ASPs are permitted to process requests for multiple annuities and report the details to the CRA via the Reverse Information Flow (RIF) mechanism.
What you must do
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Who is affected
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[Image omitted. See the official document.]
CIRCULAR
Circular no: PFRDA/2023/14/SUP-ASP/02 10th May, 2023
To All NPS Stake Holders
Subject: Retirement Income Optimization through Multiple Annuities
Under NPS, the immediate annuities are made available to the subscribers by Annuity Service Providers (ASPs) under the enabling provisions of Exit Regulations of PFRDA. At present, the subscribers are allowed to buy one annuity scheme from the ASP at the time of exit.
In the interest of subscribers' retirement income optimization and to provide them with a wider range of annuity options, PFRDA is pleased to inform that the choice of multiple annuities from the same ASP will be made available.
The option of multiple Annuities shall be provided for those Subscribers who earmark the annuity corpus more than Rs 10 lakhs wherein Rs 5 lakhs utilized to buy each annuity scheme.
In this regard, CRAs are advised to build the necessary system-level functionality to facilitate the implementation of this change. Until this feature is developed, ASPs can handle the requests for multiple annuities received from subscribers and provide the necessary information to CRA through Reverse Information Flow (RIF).
PFRDA believes that this change will greatly benefit subscribers by providing them with a wider range of annuity options and optimizing their retirement income.
Digitally signed by K MOHAN GANDHI Chief General Manager
बी – १४/ए, छत्रपति शिवाजी भवन, कुतुब संस्थागत क्षेत्र, कटवारिया सराय ,नई दिल्ली – ११० ०१६ दूरभाष: 011 - 26517501, 26133730, 26133730 फैक्स: 011 – 26517507, वेबसाइट :www.pfrda.org.in B-14/A, Chhatrapati Shivaji Bhawan, Qutab Institutional Area, Katwaria Sarai, New Delhi – 110 016 Phone: 011 - 26517501, 26133730 ,26133730 Fax: 011 – 26517507 website: www.pfrda.org.in