SUBSCRIBERS TO NPS TO NOW HAVE CHOICE OF
ANNUITY SERVICE PROVIDERS; PFRDA TAKES IMPORTANT STEP TOWARDS PROVIDING AN EXIT
ROUTE TO THE SUBSCRIBERS.
Subscribers to the National Pension System (NPS) will now have a choice
of Annuity Service Providers, from whom they can choose their annuity schemes
on their exit from NPS on attainment of 60 years of age. Pension Fund
Regulatory and Development Authority (PFRDA) has empanelled the following six
IRDA approved life insurance companies for providing annuity services to the
subscribers of National Pension System (NPS).
1. Life Insurance Corporation of India
2. SBI Life Insurance Co. Ltd.
3. ICICI Prudential Life Insurance Co. Ltd.
4. Bajaj Allianz Life Insurance Co. Ltd.
5. Star Union Dai-ichi Life Insurance Co. Ltd.
6. Reliance Life Insurance Co. Ltd.
Under the provisions of NPS, a maximum of 60% of corpus accumulated at
the time of exit, normally on the attainment of 60 years of age, can be
withdrawn but a minimum of 40% corpus has to be utilized for purchasing an
annuity from one of the empanelled annuity service providers. Subscriber can
choose from any of the six above mentioned annuity service providers and can
also make their choice of the annuity scheme from amongst the schemes being
offered by these providers.
With the above empanelment, PFRDA has taken an important step towards
providing an exit route to the subscribers. Source: PIB
LINKING OF GPF INTEREST RATES WITH EPFO
The rates of interest on General Provident Fund (GPF) is
8% for the period from 1.4.2011 to 30.11.2011 and 8.6% from 1.12.2011 to
31.3.2012, whereas the rate of interest on EPF for the financial year 2011-12
is 8.25%. Rate of interest on EPF is fixed on the recommendation of the Central
Board of Trustees (CBT) by the Employees Provident Fund Organisation (EPFO), Ministry
of Labour and Employment based on the income earned on the accumulated fund
during the financial year. However, rate of interest on GPF is generally fixed
after taking into consideration the average secondary market yields on
government securities of similar maturity.
This
information was given by the Minister of State for Finance, Shri Namo Narain
Meena in written reply to a question in the Lok Sabha today. Source: PIB
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