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PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
First Floor, ICADR Building, Phase II, Plot No 6,
Vasant Kunj Institutional Area, New Delhi-110070Tel:011-26897948/ 49 Fax- 26897938 Website: www.pfrda.org.in
EMPANELMENT OF ANNUITY SERVICE PROVIDERS (ASPs) For
NATIONAL PENSION SYSTEM (NPS)
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PFRDA invites applications from the IRDA registered Life Insurers for empanelment as Annuity Service
Providers (ASP) for providing / facilitating purchase of annuities to the subscribers of National Pension
System (NPS) at the time of their exit from National Pension System.
As per the NPS, a subscriber can exit from the system under the following scenarios:1. On attaining the Normal Retirement Age (NRA)/ 60 years: Subscriber is required to compulsorily
annuitize at least 40% of the pension wealth and the remaining 60% can be withdrawn as a lump sum
or in a phased manner.
2. Upon death due to any cause: Nominee to receive 100% of pension wealth in lump sum. However, if
the nominee wishes to continue with the NPS, he/she shall have to subscribe to NPS individually after
following due KYC procedure.
3. Withdrawal any time before 60 years of age: Subscriber is required to invest at least 80% of the
pension wealth to purchase a life annuity from any IRDA regulated life insurance company. Rest of
the pension wealth may be withdrawn as lump sum.
ELIGIBILITY CRITERIA
The following entities are eligible to apply.
1. IRDA licensed Life Insurance Companies dealing and selling annuity products in the Indian market for
at least last 3 years.
2. Having a minimum Net worth of 250 Crores.
3. There should not have been any change in shareholding of more than 20%, in the last 3 years.
4. The Life insurer should have competency in design, development and offering of Annuity products.
This will be demonstrated by the details of the annuity products filed with IRDA.
5. Not being barred from dealing with or selling annuity products in the market by IRDA.
However, Chairman, PFRDA reserves the right to waive or modify the above mentioned eligibility criteria
without assigning any reason or giving any due notice.
Scope of Work for ASP:
The ASPs will be required to provide various kinds of Annuity options to the subscribers which can be
purchased directly by them at the time of superannuation/annuitisation through National Pension System.
The types of annuities that are proposed to be provided are as per Annexure II.
It may be noted that the annuities will be bought by the NPS subscribers from the list of Annuity ServiceProviders (ASPs) approved by PFRDA and from amongst the annuity options made available. The Annuity
Service Provider (ASP) enlisted should ensure that the final product or options accepted are in conformity
with IRDA guidelines on file and use, all the relevant rules, regulations and acts of IRDA applicable for such a
product.
NPS system consisting of Central Record Keeping agency (NSDL at present) and Trustee Bank (Bank of India)
would be facilitating data transfer and corpus from the NPS to the annuity service provider (electronically)
directly as per the option exercised by the NPS subscriber.
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Interested and eligible Life Insurers may submit their applications as per the enclosed format (Annexure I)
along with the documentary proof(s) with respect to the details furnished in the application form.
PFRDA reserves the right to accept or reject any application without assigning any reason. Application form
for empanelment shall be submitted to PFRDA, super scribing the envelope as Application for
empanelment of Annuity Service Provider for National Pension System. The Bottom Left corner of the
outer cover should carry the full name, address, telephone nos., e-mail ID etc. of the Company submitting
the application.
The sealed envelope containing the application should be addressed to:
Pension Fund Regulatory and Development Authority,
1st
Floor, ICADR Building, Plot No 6,
Vasant Kunj Institutional Area, Phase-II, New Delhi 110 070
Based on their application and eligibility, the Annuity Service Providers will be empanelled by PFRDA.
However, Chairman, PFRDA reserves the right to accept/cancel the empanelment of Annuity Service
Provider without assigning any reason or giving any due notice.
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ANNEXURE I
INFORMATION TO BE FURNISHED BY THE APPLICANT
S.
No.
Particulars Details
1. Name of the Life Insurer
2. Principal place of business with full address
(attach separate sheets, if necessary)
3 Name of the Primary Contact Person
4 Telephone & Mobile No.
5 Fax No.
6 E-mail ID
7 Brief profile of executives &
Managerial team with experience
in the Annuity product field (attach
separate sheet, if necessary)
8 Details of experience in dealing with GovtDepartments /organisations / Statutory
/Autonomous bodies Banks / financial
institutions / PSUs etc for the purpose of
providing Immediate Annuity products
(attach separate sheet, if necessary)
9 Details of Immediate Annuity Business
underwritten for the last 5 years on financial
year basis
10 As the business emanating from NPS would
be direct, please confirm that no agency
commission would be charged for the sameto the subscribers.
11 Annuity Options that would be provided by
Annuity Service ProviderPlease refer to Annexure II
List of Documents to be attached along with this application
1. A certificate duly signed by a Chartered
Accountant who is not an employee of the
Company and clearly stating the Net Worth
(Paid up capital + Reserves + surplus) of the
Company for the last 5 financial years
2 A certificate from the CEO of the Company
clearly stating the date from which the
APPLICATION FOR EMPANELMENT OF ANNUITY SERVICE PROVIDERS (ASPs)
For NATIONAL PENSION SYSTEM (NPS)
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Company has started selling Annuity
products along with a statement providing
for the Name, unique identification number
of the annuity products the company has and
the date of approval of the respectiveproducts.
3 A certificate duly signed by a Chartered
Accountant who is not an employee of the
Company stating that there is no change in
shareholding of the Company of more than
20%, in the last 3 financial years
4 A certificate from the CEO of the Company
that the company is/was not barred from
dealing with or selling annuity products in the
market by IRDA.
5 A certificate duly signed by CEO/CFO/CIO ofthe Company clearly showing the annuity
providers fund size (AUM) in Crores for the
company, for the last 5 Financial Years
6 Companys registration certificate issued by
IRDA
7 A certificate duly signed by CEO/CFO/CIO of
the Company clearly showing the annuity
providers fund size (AUM) in Crores for the
company, for the last 5 Financial Years
8 A certificate duly signed by CEO/CFO/CIO of
the Company clearly showing the annuityproviders fund size (AUM) in Crores accruing
from Annuity Business only, for the last 5
Financial Years
9 A certificate duly signed by the Appointed
Actuary of the Company on the Solvency
margin ratios clearly showing the Solvency
margin reported to IRDA for the past 5
financial years
10 A certificate duly signed by an Independent
Chartered Accountant clearly showing the
annuity providers Profit before Tax (PBT) forthe last 5 financial Years
11 A certificate duly signed by CEO/CFO of the
Company clearly showing the Management
Expense Ratio for the past 5 financial years
12 A certificate duly signed by CEO/CFO of the
Company clearly showing the full details on
any regulatory strictures or penalties
imposed by IRDA/SEBI/RBI or any other
government body during the last 5 financial
years and till 31st Oct, 2011. If no
penalties/regulatory strictures were imposed
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by any of the above authorities a certificate
clearly specifying the same needs to be
submitted.
13
A certificate duly signed by CEO of the
Company on the Grievance settlement Ratio(No. of grievances settled / Total grievances
reported Plus outstanding at the beginning of
the financial year) and clearly providing the
information for the last 5 financial years
14 A certificate duly signed by CEO/CFO/CIO of
the Company clearly stating the date from
which the Company is selling Group Annuity
products in India.
15 A certificate duly signed by CEO/CFO/CIO of
the Company clearly stating the individual
annuity products filed with IRDA along withtheir UIN, date of approval and date of
withdrawn(if withdrawn from the market)
Signature of the Authorized Person with official seal
NameDesignation
Contact details
Date:
Place:
Important Notes:
Please also send soft copy of the application only (without attachments) at
Please attach list of documents as per requirement above.
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ANNEXURE II
OptionAnnuity Type to be provided by Annuity Service
Provider
Will be provided/ will not be
provided. If the option cannot
be provided, please state the
reasons thereof. You may use
an additional sheet, if required
for the purpose.
OPTION I Pension (Annuity) payable for life at a uniform rate.
OPTION II Pension (Annuity) for life with return of purchase price on
death of the annuitant to the nominees/legal heirs.
OPTION III The monthly pension (annuity) should be paid to the
subscriber for life and upon death of subscriber the
monthly annuity shall be paid to the family members inorder and for period as detailed in Annexure III.
OPTION IV Pension (Annuity) for life with a provision of 100% of the
annuity payable to spouse during his/her lifetime on death
of the annuitant.
OPTION V Pension (Annuity) for life with a provision of 100% of the
annuity payable to spouse during his/her lifetime on death
of the annuitant with return of purchase price on upon
death of annuitant to the nominees/legal heirs.
OPTION VI Pension (Annuity) for life with a provision of 50% of the
annuity payable to spouse during his/her lifetime on death
of the annuitant.
OPTION VII Pension (Annuity) for life with a provision of 50% of the
annuity payable to spouse during his/her lifetime on death
of the annuitant with return of purchase price on upon
death of annuitant to the nominees/legal heirs.
OPTION VIII Pension (Annuity) payable for 5, 10, 15 or 20 years certain
and thereafter as long as the annuitant lives.
OPTION IX Any other annuity types that PFRDA or Government of
India may ask the Annuity Service Provider to design forNPS subscribers at a later date.
OPTION X Any other annuity types designed or proposed by the Life
insurer for this purpose.
Signature of the Authorized Person with official seal
Name
Designation
Contact details
Date: Place:
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ANNEXURE - III
Pensionary benefits to Government employees under the National Pension System
(1) Pension for the life time of the Government employee exiting from NPS
(1) The period for which family pension is payable shall be as follows -
(i) subject to clause (1) above, in the case of a widow or widower up to the date of death or re-marriage, whichever is earlier.(ii) subject to (1) and 2 (i) above, in the case of an unmarried son, until he attains the age of twenty-five years or until he gets married, whichever is earlier(iii) subject to (1) and 2 (i & ii) above in the case of an unmarried or widowed or divorced daughter,upto the date of death or until she gets married or remarried, whichever is earlier;(iv) subject to (1) and 2 (I, ii and III) above, in the case of parents who were wholly dependent on the
Government servant immediately before the death of the Government servant, for life(v) dependent disabled siblings
Provided that the family pension shall continue to be payable to a childless widow on remarriage, if her
income from all other sources is less than the amount of Rs 3500 plus Dearness Relief thereon.
Provided further that if the son or daughter of a Government servant is suffering from any disorder or
disability of mind including mentally retarded or is physically crippled or disabled so as to render him of her
unable to earn a living even after attaining the age of twenty-five years, the family pension shall be payable
to such son or daughter for life subject to the following conditions, namely -
(i ) if such son or daughter is one among two or more children of the Government servant the
monthly payment from annuity shall be initially payable to the minor children (mentioned in clause (ii)
or clause (iii) of this sub rule) in the order set out in Clause (iii) of sub-rule ( 7) of this rule until the last
minor child attains the age of twenty-five and thereafter the monthly payment through annuity shallbe resumed in favour of the son or daughter suffering from disorder or disability at mind including
mentally retarded or who is physically crippled or disabled and shall be payable to him/her for life;
( i i) if there are more than one such children suffering from disorder or disability of mind including
mentally retarded or who are physically crippled or disabled, the family pension shall be paid in the
order of their birth and the younger of them will get the family pension only after the elder next above
him/her ceases to be eligible;
Provided that where the family pension is payable to such twin children it shall be paid in the manner set
out in Clause (d) of sub-rule (6) of this rule;
(iii) the family pension shall be paid to such son or daughter through the guardian as if he or she
were a minor except in the case of the physically crippled son/daughter who has attained the age of
majority;
(iv) before allowing the family pension for life to any such son or daughter, the appointing authority
shall satisfy that the handicap is of such a nature so as to prevent him or her from earning his or her
livelihood and the same shall be evidenced by a certificate obtained from a Medical Board comprising
of a Medical Superintendent or a Principal or a Director or Head of the institution or his nominee as
Chairman and two other members, out ofwhich at least one shall be a Specialist in the particular areaof mental or physical disability including mental retardation settingout, as far as possible, the exactmental or physical condition of the child;
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(v) the person receiving the family pension as guardian of such son or daughter or such son or daughter
not receiving the monthly payment through annuity through a guardian shall produce a certificate,
from a Medical Board comprising of a Medical Superintendant or a Principal or a Director or Head of
the Institution or his nominee as Chairman and two other members, out of which at least one shall be
Specialist in the particular area of mental or physical disability including mental retardation, once, ifthe disability is permanent and if the disability is temporary, once in every five years to the effect that
he or she continues to suffer from disorder or disability of mind or continues to be physically crippled
or disabled.
(vi) In the case of mentally retarded son or daughter, the family pension shall be payable to a person
nominated by the Government servant and in case no such nomination has been furnished to the Head
of office by such Government servant during his lifetime, to the person nominated by the spouse of
Government servant, later on. In case no such nomination has been made by the Government servant
or by the spouse of Government servant the guardianship certificate obtained under Section 14 of the
National Trust Act, 1999 (No. 44 of 1999), from a local level committee, shall be accepted for
nomination/appointment of guardian for grant of monthly payment through annuity in respect ofbeneficiary suffering from Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities.
Provided further that the family pension to an unmarried or widowed or divorced daughter shall be subject
to following conditions, namely:-
(i) the family pension shall be initially payable to the minor children (mentioned in clause (ii) or
clause (iii) of this sub-rule) in the order set out in Clause (iii) of sub-rule (7) of this rule until the
last minor child attains the age of twenty-five; and
(ii) There is no disabled child eligible to receive family pension in accordance with the secondproviso of this sub-rule.
EXPLANATIONS -
(a) An unmarried son or an unmarried or widowed or divorced daughter shall become ineligible for
the family pension under this sub-rule from the date he or she married or re-married.
(b) The family pension to a son or a daughter shall be stopped if he or she starts earning his/her
livelihood In such cases it shall be the duty of the guardian or son or daughter to furnish a
certificate to the disbursing authority of monthly payment, once in a year that (i) he or she has not
started earning his/her livelihood and that (ii) he or she has not yet married.
(c) For the purpose of this sub-rule. a son or a daughter shall be deemed to be earning his/her
livelihood if his/her income from other sources is equal to or more than Rs. 3500 plus Dearness
Relief thereon Parent shall be deemed to be dependent on the Government servant if their
combined income is less than the Rs 3500 plus Dearness Relief thereon.
(d) the family pension payable to a childless widow shall be stopped if, after re-marriage, her income
from all other sources becomes equal to or exceeds the amount Rs.3500 plus Dearness Relief
thereon.
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(e) a disabled sibling shall become ineligible for the family pension under this sub-rule from the date
he or she gets married or he or she starts earning his/her livelihood and income from all other
sources becomes equal to or exceeds the amount Rs.3500 plus Dearness Relief thereon.
(6) (a) (i) Where the family pension is payable to more widows than one the family pension shall be paidto the widows in equal shares.
(i i) On the death of a widow, her share of the family pension shall become payable to her eligible
child
Provided that if the widow is not survived by any child, her share of the family pension shall not lapse but
shall be payable to the other widows in equal shares, or if there is only one such other widow, in full, to her.
(b) Where the deceased Government servant is survived by a widow but has left behind eligible child or
children from another wife who is not alive, the eligible child or children shall be entitled to the
share of family pension which the mother would have received if she had been alive at the time of
the death of the Government servant.
Provided that on the share or shares of family pension payable to such a child or children or to a widow or
widows ceasing to be payable, such share or shares shall not lapse, but shall be payable to the other widow
or widows and/or to other child or children otherwise eligible, in equal shares, or if there is only one widow
or child, in full, to such widow or child.
(c) Where the deceased Government servant is survived by a widow but has left behind eligible child or
children from a divorced wife or wives the eligible child or children shall be entitled to the share of
family pension which the mother would have received at the time of the death of the Government
servant had she not been so divorced.
Provided that on the share or shares of family pension payable to such a child or children or to a widow or
widows ceasing to be payable, such share or shares, shall not lapse, but shall be payable to the other widow
or widows and/or to the other child or children otherwise eligible, in equal shares, or if there is only one
widow or child, in full, to such widow or child.
(d) where the family pension is payable to twin children it shall be paid to such children in equalshares.
Provided that when one such child ceases to be eligible his/her share shall revert to the other child and
when both of them cease to be eligible the family pension shall be payable to the next eligible single
child/twin children.
(7) (i) Except as provided in sub-rule ( 6), the family pension shall not be payable to more than onemember of the family at the same time.
(i i) If a deceased Government servant leaves behind a widow or widower, the family pension shall
become payable to the widow or widower, failing which to the eligible child.
(i i i) Family pension to the children shall be payable in the order of their birth and the younger of them
will not be eligible for monthly payment through annuity unless the elder next above him/her has
become ineligible for the grant of family pension.
Provided that where the family pension is payable to twin children it shall be paid in the manner set out in
clause (d) of sub-rule (6) of this rule
(8) Where a deceased Government servant leaves behind more children than one, the eldest eligible child
shall be entitled to the family pension for the period mentioned in clause (ii) or clause (iii) of sub-rule
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(5), as the case may be, and after the expiry of that period the next child shall become eligible for the
grant of family pension.
(9) Where family pension is granted under this rule to a minor, it shall be payable to the guardian on behalf
of the minor
(10)(a) Family pension to the parents shall be payable if the parents were wholly dependent on the
Government servant immediately before his/her death and the deceased Government servant is not
survived by a widow or an eligible child.
(b) The family pension, wherever admissible to parents, will be payable to the mother of the
deceased Government servant failing which to the father of the deceased Government servant.
(11)In case both wife and husband are Government servants and are governed by the provisions of this rule
and one of them dies while in service or after retirement, the family pension in respect of the deceased
shall become payable to the surviving husband or wife and in the event of the death of the husband orwife, the surviving child or children shall be granted the two family pensions in respect of the deceased
parents.
(12)Where a female Government servant or male Government servant dies leaving behind a judicially
separated husband or widow and no child or children, the family pension in respect of the deceased
shall be payable to the person surviving:
Provided that where in a case the judicial separation is granted on the ground of adultery and the death of
the Government servant takes place during the period of such judicial separation, the family pension shall
not be payable to the person surviving if such person surviving was held guilty of committing adultery.
(13) (a) Where a female Government servant or male Government servant dies leaving behind a judiciallyseparated husband or widow with a child or children, the family pension payable in respect of
deceased shall be payable to the surviving person provided he or she is the guardian of such child or
children.
(b) Where the surviving person has ceased to be the guardian of such child or children, such family
pension shall be payable to the person who is the actual guardian of such child or children.
(14) (a) If a person, who in the event of death of a Government servant while in service, is eligible to receive
the family pension under this rule, is charged with the offence of murdering the Government servant
or for abetting in the commission of such an offence, the claim of such a person, including other
eligible member or members of the family to receive the family pension, shall remain suspended till
the conclusion of the criminal proceedings instituted against him.
(b) If on the conclusion of the criminal proceedings referred to in
clause (a), the person concerned -
(i ) is convicted for the murder or abetting in the murder of the Government servant, such a person
shall be debarred from receiving the family pension which shall be payable to other eligible member
of the family, from the date of death of the Government servant,:
( i i) is acquitted of the charge of murder or abetting in the murder of the Government servant, the
family pension shall he payable to such a person from the date of death of the Government servant.
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(15) (a) (i) As soon as a Government servant enters Government service, he shall give details of his family
to the Head of Office;
(ii) If the Government servant has no family he shall furnish the details as soon as he acquires a
family
(b) The Government servant shall communicate to the Head of Office any subsequent change in the
size of his family, including the fact of marriage of his child.
(c) As and when the disability referred to in proviso to sub-rule (5) of manifests itself in a child or a
sibling which makes him/her unable to earn his/her living, the fact should be brought to the
notice of the Head of Office duly supported by a Medical Certificate from a Medical Officer, not
below the rank of a Civil Surgeon. As and when the claim for monthly payment through annuity
arises, the legal guardian of the child or sibling should make an application supported by a fresh
medical certificate from a Medical Officer, not below the rank of Civil Surgeon that the child still
suffers from the disability.
(d) (i)The Head of Office shall, on receipt of the said communication, get it pasted on the servicebook of the Government servant concerned and acknowledge receipt and all further
communications received from the Government servant in this behalf.
(e) (ii)The Head of Office on receipt of communication from the Government servant regarding any
change in the size of family shall have such a change incorporated in service book.
(16) No family pension under this rule shall be granted to a military pensioner, who on retirement
from military service, on retiring pension, service pension or invalid pension is governed for the
grant of ordinary family pension by Army Instruction 2/S/64 or corresponding Navy or Air Force
Instructions and is re-employed in a civil service or civil post before attaining the age of
superannuation, and dies while holding a civil post .
(17) No family pension under this rule shall be granted to a person who is already in receipt of
Family Pension/monthly payment from annuity or is eligible therefore under any other rules of
the Central Government or a State Government and/or Public Sector Undertaking/Autonomous
Body/Local Fund under the Central or a State Government:
Provided that a person who is otherwise eligible for the family pension under this rule may opt to
receive family pension under this rule it he forgoes family pension admissible from any other source.
Provided further that family pension admissible under the Employees Pension Scheme, 1995, and the
Family Pension Scheme, 1971 and other statutory contributory pension/family pension schemes shall,
however, be allowed in addition to the family pension admissible under these rules.
(18) For the purposes of this rule, -
(a) "continuous service" means service rendered in a temporary or permanent capacity on posts in
connection with the affairs of the Union as member of New Pension Scheme and does not
include -
(i) period of suspension, if any; and
(ii) period of service, if any, rendered before attaining the age of eighteen years;
(b) "family" in relation to a Government servant means -
(i) wife in the case of a male Government servant, or husband in the case of a female
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Government servant.
(ii) a judicially separated wife or husband, such separation not being granted on the ground of
adultery and the person surviving was not held guilty of committing adultery.
(iii) Unmarried son who has not attained the age of twenty-five years and
unmarried/widowed/ divorced daughter, including such son and daughter adopted
legally.
(iii)Dependent parents
(iv)Dependent disabled siblings