Change in NPS rule: Pension scheme investors can get in trouble if these guidelines are not followed
Each year for the duration of their pension, each pensioner needs to submit a Life Certificate to the Pension Authority
Representational Image. News18
The Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory Development Authority (PFRDA) periodically take action for safeguarding the interests of those individuals who invest in the National Pension System (NPS).
NPS is a voluntary retirement savings scheme which allows the subscribers to make defined contributions towards planned savings for securing the future in the form of pension. If you make an investment in NPS for retirement, you should be aware of the recently modified PFRDA and IRDAI laws. The pension regulator has revised the e-nomination procedure for workers in public and private firms. The nodal officer will now have the authority of accepting or rejecting your application in line with the new rule. At the same time, your application is going to be automatically submitted to the Central Recordkeeping Agency (CRA) and accepted if the Nodal Officer does not take action on it for 30 days. This regulation is in effect since 1 October.
No separate form will be required for annuity on maturity
RRDAI regularly relaxes the rules to make investment in NPS simpler. RRDAI recently did away with the separate form-filling procedure to obtain an annuity on maturity.
Digital life certificate
Each year for the duration of their pension, each pensioner is required to submit a Life Certificate to the Pension Authority. The Jeevan Praman service now enables the online submission of digital life certificates. Also, the insurance regulator has made the adoption of Aadhaar-verified life certificates by all insurers mandatory.
Using a credit card for contribution to NPS
NPS account users in Tier 2 cities will no longer be able to contribute to NPS using credit cards as of August 3, 2022, as per the PFRDA ruling. However, this feature can still be used by account holders from Tier 1 cities.
NPS is an attempt towards a sustainable solution to the problem of giving adequate retirement income to every Indian citizen. The applicant should be aged between 18 to 70 years of age as on the date of submission of his/her application and should comply with the prescribed KYC norms. This scheme is considered to be the world’s lowest cost pension scheme.
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