News of relief for NPS subscribers, considering the portability of pension policy

There is news of relief for NPS subscribers. Preparations are being made to give an opportunity to make changes in the hastily taken pension product. pension fund regulator PFRDA IRDAI has held preliminary discussions with insurance sector regulator IRDA on the issue of ‘portability’ of pension policies for NPS subscribers, which will pave the way for swapping pension plans. At present, no pension product under NPS can be changed once it is selected. PFIDA said that this discussion is still in the initial stages but steps have been taken in this direction.

Discussion on pension policy portability

Supratim Bandyopadhyay, Chairman, Pension Fund Regulatory and Development Authority (PFRDA), said in this context, “We have discussed the issue of portability with the Insurance Regulatory and Development Authority of India (IRDA) as well as service providers. However, this discussion is still in its initial stages. “The problem is that once the pension product is selected, it cannot be changed after the initial period of 15-20 days. But, it has been observed that many stakeholders opt for this in a hurry and later they have an idea of ​​whether another product is better. However, the facility of porting the NPS policy already exists during the fundraising phase. The NPS subscriber has to mandatorily keep a part of his retirement corpus in the pension policy at the time of retirement. The minimum pension purchase amount for central government employees is 40 percent of its total fund.

14 companies offering annuity services

14 companies have tied up with PFRDA for annuity service. There are many other private sector companies including LIC, SBI, HDFC in this. At present, there are 5.8 crore NPS accounts, out of which 4 crore are of Atal Pension Yojana. As on September 5, PFRDA has a total investment of Rs 8 crore.