In the case of pre-mature exit by NPS Subscriber, any annuity scheme
provided by Annutiy Service provider that covers the spouse of NPS
subscriber can be purchased
PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
B-14/A, Chhatrapati Shivaji Bhawan
Qutab Institutional Area,
Katwaria Sarai, New Delhi-110016
Circular
PFRDA/2016/5/Exits/01
03.03.2016
Subject: Clarifications on Settlement of Claims Relating To Exits, Involving Purchase of Annuities.
1. Whereas the Authority has notified the PFRDA (Exits and
Withdrawals from National Pension System) Regulations, 2015 on 11th May,
2015 and is in force.
2. Number of claims have been received post the notification
of the regulations covering pre-mature exits and also pertaining to
claims arising out of the death of the subscriber under NPS. It has been
brought to the notice of the Authority that as default annuity schemes
mentioned under Regulation 3 of the PFRDA (Exits and Withdrawals from
National Pension System) Regulations, 2015 have not been made available
by the Annuity Service Providers yet, these claims could not be settled
and thus there exists a difficulty in settling claims in accordance with
the aforesaid Regulations.
3. The Authority having considered and upon being satisfied that
the claims of the subscribers are not being able to be processed and
settled in accordance with Regulation 3 of the PFRDA (Exits and
Withdrawals from National Pension System) Regulations, 2015 and to
ensure that the interest of the
subscribers are protected in this regard, has decided that till the
time the default annuity schemes as mentioned under aforementioned
Regulation 3, are made available to the subscribers, the claims both
present and future shall be settled in the following manner:
| Existing Provisions |
Removal of difficulty |
| 1. |
Regulation 3 (b) applicable in case of pre-mature exit (to extract proviso from regulations)
In place of default annuity scheme |
Any annuity scheme provided by the Annuity Service Provider such that scheme shall mandatorily cover the spouse of the subscriber.
|
| 2. |
Regulation 3 (c) applicable in case of death (to extract proviso from regulations) |
The entire accumulated pension wealth
(100%) would be paid to the nominee/legal heir of the subscriber and
there would not be any purchase of annuity/monthly pension. |
4. The above provisions for removal of difficulty shall be in force
till the default annuity schemes are devised by the Annuity Service
Providers and made available to the subscribers, and shall cease on a date notified by the Authority, whereafter settlement of claims shall
be in accordance with the applicable provisions of the regulations. All
other provisions of settlement including settlement of lump sum pension
wealth shall be continued to be governed by the applicable provisions of the regulations.
5. This clarification for removal of difficulty is issued by the
Authority in exercise of its powers under Section 14 of the Pension Fund
Regulatory and Development Authority Act, 2013 read with Regulation 39
of the PFRDA (Exits and Withdrawals from National Pension System)
Regulations, 2015.
Yours faithfully,
sd/-
(Subroto Das)
Chief General Manager
