The Pension Fund Regulatory and Development Authority (PFRDA) and the Insurance Regulatory and Development Authority of India (IRDAI) have recently introduced a host of changes for National Pension System (NPS) subscribers and pensioners. If you invest in NPS or are about to retire, here are the latest changes you must know. NPS scheme rule changes from October 1: Check latest rules.
The revised e-nomination process flow will be effective from October 1, 2022. An NPS subscriber is required to make a nomination in the prescribed form when he or she signs up for the pension scheme.
NPS scheme rule changes here we list out top 5 changes:
NPS e-nomination flow: The PFRDA has recently changed the process for e-nomination for both government and private or corporate sector employees. The change will become effective from 1st October 2022. As per the new National Pension System NPS e-nomination process flow, the nodal office will have an option to either accept or reject the e-nomination request of the NPS account holder. In case, the nodal office does not initiate any action against the request within 30 days of its allotment, the e-nomination request will be accepted in the Central Recordkeeping Agencies (CRA) system.
Trail commission payment through PoP: To support the Points of Presence (POPs), the Pension Fund Regulatory and Development Authority (PFRDA) has allowed trail commission payment through POPs for the NPS account holders. However, the pension fund regulator made it clear that trail commission on NPS contributions made through D-Remit will be similar to eNPS (other mode of Online contribution) by those subscribers who were on-boarded by the respective PoPs. The rule has become effective from 1st September 2022.
“The trail commission to PoPs for D-Remit Contributions of the associated Subscribers shall be @ 0.20% of the contribution amount (Minimum ₹15 and Maximum ₹10,000) similar to eNPS. The applicable charges would be recovered by unit deduction on periodical basis,” PFRDA said.
No credit card payment for tier-2 account holders: The PFRDA has decided to stop the facility of payment of subscription of NPS contribution in tier-2 accounts. The PFRDA made its decision public through an official notification dated 3rd August 2022. So, after this payment from credit card for tier-2 account is no more available for the NPS account holders.
Submission of digital life certificate: The IRDAI has asked insurance companies to ease the life certificate submission process. It has asked insurance companies to follow Aadhaar-based authentication or verification of life certificate.
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No separate form for annuity buy: No at the time of maturity, no separate form will be required for annuity buying. The IRDAI has taken this decision to relax the onboarding process for NPS subscribers. Now, exit from the NPS scheme will be considered as proposal for buying annuity from life insurance companies.
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