Will you get higher annuity for National Pension Scheme?

Everyone wants that little extra, goes an internet saying. And why not, that little extra surely goes a long way. In fact according to a report published in _Business Line_today, the Pension Fund Regulatory and Development Authority want the seven insurance companies which are managing National Pension Scheme to pay better annuity rates.

The PFRDA chairman favours better annuity rates, because of near captive access of funds, said the report. In fact, the Chairman has already written to insurance companies regarding the same. After all, insurance companies which manage NPS, get a ready market, the pension corpus, and other advantages, so it’s only right that, investors are given a hike in annuity.

According to the report, Insurance Regulatory and Development Authority (IRDA) had declined to comment on the issue. Seven insurance companies, like SBI life, LIC, ICICI Prudential Life, to name a few are annuity service providers. They offer fixed monthly payments to investors.

We think what the PFRDA chairman say makes total sense, after all, if insurance companies have no cost in collecting the funds, the savings should be passed on to the investors. What do you think?

Read whole story in today’s Business Line. (We couldn’t find the link online)