NPS exit form to be treated as proposal to purchase annuity products: Irdai

Regulator eases rule for senior citizens taking annuity products from proceeds of National Pension Scheme

The insurance regulator on Tuesday eased the requirement of submitting separate proposal forms by senior citizens for taking immediate annuity products from the proceeds of National Pension Scheme (NPS). Henceforth, the exit form of NPS will be treated as a proposal form for purchasing annuity products.

Under the NPS, a subscriber who superannuates is required to purchase an immediate annuity (excluding the commuted value) from any life insurance company.

Currently, insurance companies collect proposals form NPS retirees to offer immediate annuity products. The Pension Fund Regulatory and Development Authority of India (PFRDA) also collects exhaustive exit forms from the NPS