NPS e-nomination process flow to change from October 1
The pension regulator has recently modified the process flow of e-nomination for both government and corporate sector subscribers. As per the new process flow, the nodal office will have an option to either accept or reject the e-nomination request once it is initiated. In case, the nodal office does not initiate any action against the request within 30 days of its allotment, the request will be accepted in the Central Recordkeeping Agencies (CRA) system.
“The revised process flow shall also be applicable to the existing e-nomination, which are still unauthorised,” PFRDA said in a circular last month.
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.
No separate form to buy an annuity plan at maturity
In a bid to ease the onboarding process for NPS investors, IRDAI has relaxed the requirement of submitting a separate proposal form for buying annuity products at maturity. Earlier, NPS investors had to submit an exit form to PFRDA and a detailed proposal form to the life insurance company for buying an annuity plan to receive pension. From now on, the exit form of NPS will be treated as the proposal form for purchasing annuities from life insurance companies.
Digital life certificate submission
The insurance regulator has also advised insurance companies to adopt Aadhaar-based authentication for verification of life certificates such as Jeevan Praman to ease the process for pensioners. Conjeevaram Baradhwaj, Executive Vice President (Legal & Compliance) & Company Secretary at Future Generali India Life Insurance, said, “Since, under annuity policies, the annuity amount is payable only as long as the annuitant survives, life insurance companies take an annual survival certificate from the annuitant. IRDAI has now clarified that the signature to the survival certificate can be taken through biometric based digital means.”
NPS tier-2 account holders cannot contribute through credit card
NPS tier-2 account holders are no longer allowed to make contributions through credit cards from August 3, 2022. “The Authority has decided to stop the facility of payment of subscriptions/contributions using credit card as a mode of payment in the Tier-II account of NPS. Accordingly, all PoPs are advised to stop the acceptance of credit cards as a mode of payment for the Tier-II account of NPS with immediate effect,” the PFRDA said in a circular last month.
Do note that the payment from the credit card option is still available for NPS tier-1 account holders.