About Annuity Service Providers (ASPs)
At the time of exit from NPS for reasons other than death of the subscriber, the subscriber is required to purchase an annuity providing for a monthly pension to the subscriber from an Annuity Service Provider empanelled with PFRDA. In Indian context, annuities in simple terms, are financial instruments which offer a monthly/quarterly/annual pension at a guaranteed rate for the period you choose for a given purchase price.
Annuity Service Providers are IRDA licensed and regulated Life Insurance companies, transacting annuity business in India and who are empanelled by PFRDA for servicing the annuity requirements of the NPS subscribers.
Functions of ASPs
The ASP’s are prudentially regulated and monitored by Insurance Regulatory and Development Authority (IRDA). Under National Pension System (NPS), the subscriber has the option to choose the type of Annuity and the Annuity Service provider. The subscriber may choose the annuity type/scheme basing on his requirements from amongst the available schemes offered by the respective ASP’s.
Purchase annuity online: At the time of withdrawal from NPS, the subscriber will have an option to purchase annuity online. The following online facilities will be given to the subscribers: