Functions of ASP

The PFRDA empanels IRDA-registered Indian Life Insurance companies to manage annuity funds and payment of pension after you attain the age of 60 years or superannuation and take an exit.

In simple terms, annuity refers to the periodical payments that you receive from the Annuity Service Providers (ASPs) upon your exit from the NPS scheme.

It's important to note that as an NPS subscriber, you have the flexibility to choose the ASP and annuity plan that suits your retirement needs and preferences. You can also opt for a lump sum withdrawal of your accumulated NPS corpus and invest the remaining amount in an annuity plan to receive regular income during your retirement years.

Functions of ASP

• Providing annuity calculators, immediately available annuities, and other information as approved by the Insurance Regulatory and Development Authority (IRDA).
• Providing the infrastructure and software support for online purchase of annuity products and the related literature around available annuities
• Facilitating the issuance of annuity contracts as per your preference.
• Delivering pension at the frequency elected by you in the annuity contract, i.e., monthly, quarterly or annually. (Note: government employees can get their pension only on a monthly frequency).
• Responsible for sharing information about your annuity purchases with the NPS Trust and the CRAs from time to time.
• Managing updates to the basic details entered by you in the annuity contract, such as name change, address change, change in nominees or any other change that is requested by you.
• Providing annuity payments to you at the time of exit from the NPS at the frequency of time intervals selected by you.
• Providing minimum immediate annuity variants choices as required by the PFRDA and providing any new variant as required by the PFRDA frequently in your interest.
• Receiving and resolving all the grievances that have been raised by you and following up till your ultimate redressal is done as per the guidelines issued by the IRDA.
• Managing funds allocated for buying an annuity

As a subscriber, you must purchase an annuity product from the list of empanelled ASPs at the time of superannuation or premature exit. You must select your ASP the moment you make a exit request.

Types of Annuity Investment Plans

It is important to note that the annuity amount is dependent upon the amount of annuity purchased and the duration of the annuity that you have opted for. It will be paid monthly/quarterly/half yearly/ annually

There are 5 types of annuity investment plans to choose from

• Annuity for life: annuity or pension payable to you at a consistent rate. On death of the Annuitant, policy shall terminate and no further benefits would be payable.
• Annuity payable for Life with 100% annuity payable to spouse on death of annuitant: annuity or pension payable to the subscriber and then to their spouse after their demise. On death of the last survivor, the annuity payments will cease and no further amount will be payable.
• Annuity for life with return of purchase price on death: This option pays annuity for life. On death of the Annuitant, the Purchase Price is paid out to the nominee and thereafter the policy shall terminate and no further benefits would be payable.
• Annuity payable for Life with 100% annuity payable to spouse on death of annuitant with RoP of annuity : The annuity payable as long as at least one of the two annuitants is alive. On the death of the primary annuitant, secondary annuitant will receive 100% of original annuity throughout life. On death of the last survivor, 100% of the purchase price is returned to the nominee.
• NPS Family Income: Annuity payments would be made to the annuitant and his/ her spouse throughout their lifetime. On death of annuitant and spouse, the annuity would be paid to the subscriber's mother and after her, to the father. On death of the last survivor, the purchase price would be refunded to the annuitant's child/ nominee.

Once the entire procedure of the withdrawal request is executed and processed, the ASP will start issuing the periodical annuity.

View Exit and Withdrawals under the NPS Regulations

Important FAQs

For detailed FAQs, please visit