The Pension Fund Regulatory and Development Authority (PFRDA) has recently made several changes for the National Pension System subscribers and pensioners. Here we are telling 5 changes in NPS rules that NPS account holders should know.
1. Now the commission will be available on opening
the account, the Point of Presence (PoP) opening the account of NPS will get the commission. POPs include banks, NBFCs and other entities. They register people in NPS and provide many more facilities to the subscribers. From September 1, 2022, POP will get commission from Rs 15 to Rs 10 thousand on opening the account.
2. Changes in the process of e-nomination
As per the new procedure, now the Nodal Office will have the option to accept or reject the one-time e-nomination request. If the nodal officer does not decide on the e-nomination within 30 days from the date of application, the request will be accepted through the Central Recordkeeping (CRA) system. This new rule is effective from 1 October.
At the time of maturity, no separate form will be required to purchase annuity. IRDAI has taken this decision to relax the onboarding process for APS subscribers. Now exiting the NPS scheme will be treated as an offer to buy annuity from life insurance companies.
4. The process of submission of life certificate will be easier
IRDAI has asked insurance companies to simplify the process of submission of life certificate. It has asked insurance companies to follow Aadhaar based authentication or verification of life certificate.
5. Now Contribution will not be able to be made in Tier-II Account by Credit Card PFRDA has decided to stop the facility of payment of Contribution through Credit Card by making major changes in Tier-II Account of APS. PFRDA had given this information through a circulation on August 3. After this decision of PFRDA, the facility of payment by credit card for Tier-I account of NPS will continue, while for Tier-II account payment by credit card will no longer be possible. It is noteworthy that earlier the contribution could also be made through credit card in Tier-II account also.
What is NPS
Significantly, NPS is a government retirement savings scheme, which was launched by the central government in the year 2004. Since 2009, this scheme was also opened to people working in the private sector.