PFRDA assigns Shriram Life Insurance as annuity service provider under NPS; plan details here

Shriram Life Insurance Company (SLIC) has received approval from the Pension Fund Regulatory and Development Authority (PFRDA) to operate as a provider of annuity services for the National Pension System (NPS). After the certification was approved, SLIC released a statement stating that the insurance company will benefit from the empanelment in managing the annuity portion of maturity proceeds under NPS. For NPS subscribers, SLIC’s annuity plan, known as Immediate Annuity Plus, will offer flexible options that enable retirees to lead their lives in the same financial circumstances as before.

With the PFRDA’s accreditation, SLIC will be able to increase the number of NPS subscribers to its annuity plan. SLIC will be able to mobilize 40 percent of the NPS maturity sum, which will be available for investment in annuity schemes, thanks to its appointment as an annuity service provider. Currently, SLIC has almost 1.5 crore NPS subscribers and an AUM of more than Rs 7 lakh crore throughout the country.

After the PFRDA certification, Casparus Kromhout, MD and CEO of Shriram Life Insurance Company, responded by saying, “Shriram Life has a well-priced immediate annuity product and a robust fund management framework. With these, we are gearing up to make the best use of this new opportunity. This also provides us with another avenue to provide holistic insurance solutions for our customers.”

The Annuity Service Provider is an insurance business with IRDA registration that has been appointed by the PFRDA to provide annuity services to NPS subscribers after they leave the scheme. After a subscriber turns 60 years old, ASPs will be in charge of paying the pension and managing the money assigned for purchasing annuities.

In India, annuity premiums are generated at a rate of more than Rs 25,000 crore annually. This opportunity will increase as NPS subscriptions develop and subscribers retire. Customers will also be able to select from a variety of insurance companies that offer lucrative annuity plans based on their requirements and way of life.

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