New NPS rules for subscribers and pensioners | Fusion - WeRIndia

New NPS rules for subscribers and pensioners

New NPS rules for subscribers and pensioners

The National Pension System (NPS) is a government-sponsored pension scheme. Initially, it was launched for government employees but later was opened to all sections in 2009.

Subscribers can contribute to the scheme during their working years to get a regular income after their retirement.  NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Recently PFRDA and the Insurance Regulatory and Development Authority of India (IRDAI) introduced some changes to the NPS and eased a few rules for subscribers and pensioners.

Here are the new rules introduced for NPS subscribers and pensioners:

The flow process of e-nomination has been modified. The revised process will be applicable from October 1 for government subscribers as well as corporate sector subscribers. The nodal office will be able to accept or reject the request of subscribers regarding the e-nomination process as per the new rules. The office has to take the action within 30 days. Or else the Central Recording Keeping Agencies will accept the request automatically.

So far, NPS investors are submitting an exit form to PFRDA in addition to a detailed proposal form to the life insurance company to buy an annuity plan for receiving a pension. But, now, there is no need to submit a separate proposal form to buy annuity plans or products at maturity. An exit form of NPS is enough for this since it is treated as the proposal form.

The rule for life certificate submission has also been simplified for pensioners. Insurance companies are directed to adopt Aadhaar-based authentication for the verification of life certificates.

Another important rule is that NPS Tier II account holders are not allowed to make their contributions through credit cards. The rule was introduced on August 3. However, NPS Tier I account holders can make their contributions through credit cards.

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