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Thursday, December 7, 2023

PFRDA Releases New Regulations for Participants in the National Pension Scheme; Details Below

<p>On July 27, the Pension Fund Regulatory and Development Authority (PFRDA) released a statement in which it loosened the guidelines for its subscribers. After choosing to leave the National Pension Scheme (NPS), participants are now able to choose an annuity plan, according to the announcement. It indicates that the subscriber has the option to exit the program at any time and switch to any annual plan of their choosing. They may choose an insurance at any time after leaving the NPS and won’t be charged anything for doing so. The subscriber’s requirements determine the plan that is chosen. The PFRDA has requested the nodal personnel under the government sectors, Point of Presence or POPs, and National Pension System Trust to offer the essential assistance to the subscribers in order to aid them in making informed judgments. According to sources, there won’t be any costs associated with the procedure. In most cases, insurance firms charge NPS customers a premium for an annuity plan, and the subscribers are also responsible for paying taxes and other fees to the government or the regulator. “Additionally, there should not be any additional intermediation expense or charge in respect of the annuity product issued to the subscribers,” the PFRDA said. “Therefore, ASP (Annuity Service Provider) cannot deploy any agency or intermediary for sourcing Annuity from NPS Subscribers.”<img decoding=”async” class=”alignnone wp-image-104338″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/07/theindiaprint.com-itr-filing-deadline-july-31-how-do-you-e-verify-your-tax-return-know-many-techniques-download-2023-07-31t165445.452.jpg” alt=”” width=”1321″ height=”879″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/07/theindiaprint.com-itr-filing-deadline-july-31-how-do-you-e-verify-your-tax-return-know-many-techniques-download-2023-07-31t165445.452.jpg 275w, https://www.theindiaprint.com/wp-content/uploads/2023/07/theindiaprint.com-itr-filing-deadline-july-31-how-do-you-e-verify-your-tax-return-know-many-techniques-download-2023-07-31t165445.452-150×100.jpg 150w” sizes=”(max-width: 1321px) 100vw, 1321px” /></p>
<p>The PFRDA further said that the officials are responsible for ensuring that the departure rules’ responsibilities and obligations are being followed. In addition to other applicable laws governing annuities, they added, “The compliance officer of ASP shall be responsible for monitoring compliance with the duties and obligations as laid down under the Exit Regulations and circulars issued by the Authority.” They also said they would provide a compliance certificate to the Authority.</p>
<p>Currently, an NPS member must use 40% of the accrued corpus in order to get an annuity plan when it matures. One may take out the remaining 60% all at once. In the event that the corpus is less than or equal to Rs 5 lakh, the subscriber would be given the option to withdraw the whole lump payment.</p>
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