Functions

As per Regulation 22 of the PFRDA (Exits and Withdrawals under NPS) Regulations, 2015, Annuity Service Providers (ASPs) empaneled with PFRDA are entrusted with critical functions to support National Pension System (NPS) subscribers at the time of exit and annuity purchase.

Below is the comprehensive overview of the roles and responsibilities of ASPs under NPS:

1. Core Functions of Annuity Service Providers:

• Ensure timely annuity payments to subscribers upon their exit from the NPS.
• Offer a minimum number of immediate annuity variants as mandated by PFRDA, and introduce new variants as per regulatory directions, in compliance with the Insurance Act, 1938, and the IRDAI Act, 1999.
• Disburse monthly or periodic annuity as per the contract purchased by the subscriber.
• Handle all grievances related to annuity contracts under NPS.

2. Subscriber Interaction and Awareness:

• Address subscriber queries regarding annuity options under NPS.
• Display IRDAI-approved information on annuity schemes, including application forms, offer documents, publicity materials, and annuity calculators.

3. Annuity Purchase and Subscriber Onboarding:

• Provide infrastructure to accept annuity applications with applicable premiums.
• Facilitate online annuity purchase through the Central Recordkeeping Agency (CRA) platform with all necessary software and support.
• Issue annuity contracts as per subscriber choice, following IRDAI regulations.
• Ensure regular annuity payments—monthly, quarterly, or annually—as selected by the subscriber (government sector subscribers are restricted to monthly annuity).
• Collect, verify, and process annuity purchase requests submitted via CRA or its authorized representatives.
• Share annuity purchase data with the NPS Trust and CRA in the prescribed format and frequency.

4. Post-Purchase Support:

• Manage and process subscriber requests related to change of address, nomination, or any updates to the annuity contract.

5. Grievance Redressal:

• Receive, address, and resolve subscriber complaints regarding annuity services in accordance with IRDAI grievance redressal guidelines.
• Communicate resolution status to the NPS Trust and maintain transparency throughout the grievance lifecycle.

6. Regulatory Compliance and Subscriber Protection:

• All subscriber complaints must be resolved in accordance with the IRDAI Act, 1999.
• The Authority reserves the right to suspend or cancel empanelment of ASPs in case of non-compliance or subscriber harm.

 

Calculate Your Pension (Annuity):
Subscribers can use the following tools to compare pension plans and estimate their monthly annuity:

• View Pension Plans by ASPs (NSDL)
• Compare ASP Annuity Quotes (CRA NSDL)
• Annuity Rates (KFintech)

Please note: Actual annuity amounts may vary based on the prevailing annuity rates at the time of purchase.

Click here: 

 i.    https://cra-nsdl.com/CRAOnline/aspQuote.html   

ii.    https://enps.kfintech.com/annuity/

Types of Annuity

Annuity schemes under the National Pension System (NPS) are offered by Annuity Service Providers (ASPs) that are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and are empaneled with the Pension Fund Regulatory and Development Authority (PFRDA).

It is crucial for NPS subscribers to understand the different types of annuity options before making a purchase decision. Annuities provide a regular monthly pension after retirement, ensuring financial security throughout life.

Below are the commonly available immediate annuity options:

• Annuity for Life:

This option pays a fixed annuity to the subscriber for life. After the death of the annuitant, the policy terminates, and no further benefits are payable.

• Annuity for Life with Return of Purchase Price (RoP) on Death:

This annuity option pays a regular pension for life. Upon the death of the annuitant, the purchase price is returned to the nominee, after which the policy terminates.

• Annuity for Life with 100% Annuity Payable to Spouse on Death of Annuitant:

In this option, annuity payments continue as long as either the annuitant or the spouse is alive. Upon the death of the primary annuitant, the spouse receives 100% of the annuity for life. Once both passes away, the annuity payments cease.

• Annuity for Life with 100% Annuity Payable to Spouse on Death of Annuitant with RoP

This annuity is payable as long as at least one of the annuitants (subscriber or spouse) is alive. After both have passed away, 100% of the purchase price is returned to the nominee.

• NPS – Family Income Option

This is a unique annuity plan where annuity payments are made to the subscriber and their spouse during their lifetimes. After their demise, the annuity continues to the subscriber’s mother, and subsequently to the father. Upon the death of the last surviving family member, the purchase price is refunded to the nominee or legal heir.
 

Important Notes:

• Age criteria, annuity premium rates, and monthly/periodic pension amounts may vary across Annuity Service Providers (ASPs).
• Subscribers are advised to compare annuity rates and terms offered by different ASPs before making a decision.

Check Current Annuity Rates:

• NSDL CRA ASP Quote Comparison
• KFintech Annuity Rates
   

Empanelment of ASPs

Life Insurance Companies registered and regulated by the Insurance Regulatory and Development Authority(‘IRDA’) [that are registered with and regulated by the Insurance Regulatory and Development Authority of India (IRDAI)] may apply to act as an empaneled Annuity Service Providers (ASP) with the PFRDA to offer various types of immediate annuities to the subscribers at the time of exit from [the] National Pension System (NPS).

Eligibility Criteria for ASP Empanelment:
The following entities are eligible to apply:

1. Be a life insurance company registered with IRDAI and actively offering annuity products in India for the past three years.
2. Having a minimum Net worth of ₹ 250 Crores.
3. Demonstrate capability in designing and delivering annuity products, supported by product filings with IRDAI.
4. Not be barred or restricted by IRDAI from selling annuity products.
5. Any other criteria as may be specified by the Authority from time to time.

For comprehensive details on the eligibility criteria, duties, and responsibilities for any applicant to act as an empaneled ASP, you may please refer to Regulations 10 to 30 of the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, and amendments thereof.

Further, to understand the various provisions related to exit and withdrawal, you may refer to the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, and amendments thereof.

Annuity Service Workflow under NPS:
It may be noted that the annuities will be bought by the subscribers from the list of Annuity Service Providers (ASPs) empaneled by the PFRDA and selected from annuity options tailored to their retirement needs. The Central Recordkeeping Agency (CRA) and Trustee Bank under the NPS architecture would be facilitating data transfer and corpus from the NPS to the annuity service provider (electronically) directly as per the option exercised by the subscriber.

To view more about the types of annuities that are proposed to be provided by ASPs click here. The Annuity Service Provider (ASP) enlisted should ensure that the final product or options accepted are in conformity with IRDA file-and-use guidelines and all the relevant rules, regulations, and acts of IRDAI applicable for such a product.

How to Apply for ASP Empanelment?
Interested and eligible Life Insurers may submit their applications as per the Application Form along with the documentary proof(s) with respect to the details furnished in the Application Form. Application Form for empanelment shall be submitted to PFRDA, clearly super scribing the envelope as:
“Empanelment of Annuity Service Provider for providing annuity services to subscribers under the National Pension System (‘NPS’)”

The Bottom Left corner of the outer cover should carry the full name, address, telephone nos., e-mail ID, etc. of the Company submitting the Application Form.

Submission Address:
The sealed envelope containing the application should be addressed to:

The Chief General Manager
Regulation Department - Exits
Pension Fund Regulatory and Development Authority (PFRDA)
B-14/A, Chhatrapati Shivaji Bhawan,
Qutub Institutional Area, Katwaria Sarai,
New Delhi – 110 016

For the Application Form for empanelment of Annuity Service Provider for providing the annuity services to subscribers under the National Pension System (‘NPS’) click here.

Important Notes for Applicants:

Before applying as Annuity Service Provider (ASP), applicants are advised to carefully read the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, and amendments thereof, and ensure full compliance with all relevant IRDAI regulations and statutory guidelines.
 

Empanelment renewal

Annuity Service Providers (ASPs) empaneled with the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System (NPS) must periodically renew their empanelment to continue offering annuity services to NPS subscribers.

Renewal Process as per Regulation 20(2)
According to Regulation 20(2) of the PFRDA (Exits and Withdrawals under NPS) Regulations, 2015, and subsequent amendments:

• An empaneled ASP must submit an application for renewal to keep their empanelment in force.
• The application must be submitted within 90 days before the completion of five years from the date of:
• First empanelment, or
• Last successful payment of the renewal fee accepted by PFRDA.

Renewal Fee and Payment details

To maintain empanelment, the ASP must:

• Pay a renewal fee of INR 25,000, plus applicable taxes and levies.
• Submit the payment and renewal application in the specified format as prescribed by PFRDA.

Apply for Renewal of Empanelment
To apply for continuation of your empanelment as an Annuity Service Provider under NPS:
Click here to apply