NPS – Comparing Pension Amount by Govt Nodal Office

Comparing pension amount(Family Pension or NPS annuity) by Government Nodal Office before processing Family Pension cases on Death/disability of subscriber.

CIRCULAR

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

8-14/A, Chhatrapati Shivaji Bhawan

Qutab Institutional Area,

Katwaria Sarai, New Delhi-110016

PFRDA/2016/13/Exit/05

June 22, 2016

To,

NPS Trust, CRA, Pension Funds, Trustee Bank, Govt. Nodal Offices, Annuity Service Providers and other stakeholders

Sub: Comparing pension amount(Family Pension or NPS annuity) by Government Nodal Office before processing Family Pension cases on Death/disability of subscriber.

This is with reference to Regulation 6(e) of the Pension Fund Regulatory and Development Authority (Exits and Withdrawal from National Pension System) Regulation 2015, providing for the treatment of additional benefits provided by the government like Family Pension.   In this regard, the Authority has provided guidelines for adjustment/transfer of accumulated pension wealth in the subscribers’ account to the government nodal office in the event of the government providing an additional benefit in the nature of family pension to the family members/subscriber upon their request.

However, in order to ensure that such claimants take an informed decision on availing such family pension vis-a-vis the benefits available to them under National Pension System (NPS), it has been decided that the concerned nodal office shall obtain from CRA registered under NPS the information about the likely monthly annuity amount with the accumulated pension wealth in the subscribers account and inform the. claimants along with the family pension they are eligible to get.   This is to ensure that the claimants/ family members of the subscriber/subscriber takes an informed decision in the matter of availing the benefits available to him.

The Authority is undertaking steps to provide for an annuity quote calculator on the website of CRA registered under NPS for facilitating the same and, in the interim, such nodal offices can write to CRA at [email protected] to provide the approximate pension per month that can be derived from the purchase of an annuity for the accumulated pension wealth in the subscribers  account  by  giving  the  PRA  number  and  other details. Upon  receipt  of  the information   from  CRA  the nodal office  can  guide  the  claimants   appropriately  based  on  the annuity  available  under  NPS and the monthly  pension  that is available  under  the additional  relief by way of family  pension being  offered  to them.

Regulation  6 (e) is to be read in conjunction  with Regulation  3 (b) and 3 (c) of the Pension  Fund Regulatory and Development  Authority (Exits  and Withdrawal   from National   Pension System) Regulation  201 Sand is applicable only  if the concerned  Central  or State  Government   is offering such additional   relief  by way  of family  pension  to  its employee.  It may  also  be  noted  that  the grant  of additional relief  by way of family  pension  etc.,   is the sole  prerogative  of the concerned Central  or State Government   entity  and the Authority  has no role to play in this regard.

The clarificatory  guidelines  for  removal  of difficulty  are being issued  by the Authority  in exercise of its powers  under Section 14 of the  Pension  Fund Regulatory and Development Authority Act,2013  read  with  Regulation  39  of  the PFRDA  (Exits and Withdrawals from  National Pension System) Regulations, 2015.

(Venkateswarlu Peri)

General Manager

Download PFRDA Circular PFRDA/2016/13/Exit/05 22.06.2016