National Pension System (NPS) rule change: How pensioners will benefit

(NPS) pensioners don’t have to fill any separate form to buy annuity from NPS proceeds at the time of retirement. 

NPS retirees have to submit an exit form to PFRDA and a proposal form to insurers at the time of superannuation. 

Submission of life-certificate digitally

Insurers to adopt Aadhaar-based authentication for verification of life certificate such as Jeevan Pramaan. 

What does it mean for pensioners ? 

Pensioners will no longer need to fill a separate proposal form to decide on the annuity after exiting the pension corpus.

Will senior citizens benefit?

Senior citizens who subscribe to NPS will benefit from this, according to experts.  

Who provides annuities to NPS subscribers?

As per the norms of PFRDA, at least 40 per cent of the accumulated pension wealth of a subscriber has to be utilised for purchase of annuity providing for monthly pension to the subscriber and the balance is paid as lump sum.