i *{*itu\"' ,:GoupRNMENr oFlrypF t,(: hffiW s -,' {-8.ryT4r.:grTlgsl . 6 (RAILMANTRALAYA).v:'iu * .wtttttstnyoF RAILWAYS ,Dt -*J$v 5l 1'^-' (RArLwAyrioeno) 1#:*{n -

ri,*-f.-,,-""

"-q 6

4r. ..r t A-rc #ty. NewDelhi,Dated:d7'05.2016 ,i,W

No.2016lF{E)lll11t1y3

': l lb T

The GMSIFA&GAOs, All India Railways/FroductionUnits, (As per mailing list)

{

Exits and Withdrawlsunderthe NationalPension$ystem'reg.

Subject:

******!t*

rity (PFRDA)'s

A copy of PensionFund Regulatoryand dated1 GazetteNotificationNo. PFRDA/12|RGU139/8 porti The enclosedfor informationand compliance. 'Government shallapplymutatisri SectorSubscribers' o

- :

subjectis

.2015on the Noti onR

-

: :

..**N

Gopal)

.*...so

%*--**

D.A.:One

RailwayBoard.

T*" . * *

'i

{

;

,,,,ij'it'-

*-**,

(1}i3 No. 2016/F(E)llll1

,' ,

New Delhi,Dated:d?.05'2016'

'{ ;

'+-

*d

to

itllrir

K: \*''ll,],j]r

t:

.,"t

,

+{i::,

I ,

'i,

;

%

rute;

t

T

ForFinancialCommission-er/Railways'

National Federation of Indian Railwaymen (N'F'I'R) 3, Chelmsford Road, New Delhi' No.I V/NPS/P F RDA B iluPt. I @

Copy to the General Secretariesof Afiiliated ' withinfortnight. Media Centre.

Dt:08/06/2016

(Jnions of NFIRfor commentL the same should reach 'f, ^ 11

&T'"y'

(Dr.M.Rusffiatkh) General Secretary

l!

I I qm III-l*q-c 4l

qKd SI {ltftfd : 3TqIqREt

PENSIONF'UNDREGULATORY AND DEVELOPMENT AUTHORITY NOTIFICATION Pension Fund Regulatory and Development Authority (Exits and Withdrawals Under the National PensionSystem)Regulations2015 New Delhi,the I lth May, 2015 No.PFRDAII2/RGIJI39/8- In exerciseof the powersconfemedby sub-section(l) of section52 read with clauses(g), (h), and (i) of sub-section(2) thereofof the PensionFund Regulatoryand DevelopmentAuthority Act, 2013 (23 of 2013), the PensionFund Regulatoryand DevelopmentAuthority hereby makesthe following regulations'namelY:,HAPTER I PRELIMINARY

L

} . Short title dnd commencement.-(l) Theseregulationsmay be called the PensionFund Regulatory

andDevelopmentAuthority (Exits andWilhdrawalsunderthe NationalPensionSystern)Regulations,2015. "The regulationsaim at providing an effective mechanismin the interest of subscribers,upon exit or withdrawalfiom the National PensionSystem,including the conditions,purpose,frequencyand limits for withdrawalsfrom individual pensionaccount,as also the conditions,subjectto which a subscribershall exit fromtheNatiorra|PensionSystemandpurchaseanannuitythereupon.,' (2) They shallcJrneinto force on the dateof their publicationin the Official Gazette. 2.

unles.s thecontextothcrwiserequircs.Definitions.-(l) In thcscrcgulatious.

(a)

"Act" meansthe Peniion FundRegulatoryand DevelopmentAuthority Act, 2013 (23 of 2013);

(b)

"accumulatedpensionwealth" meansthe monetary value of the pension investmentsaccumulatedin

the PermanentRetirementAccountof a subscriberunderthe NationalPensionSystem; (c)

"aggregator" meansan intermediaryregisteredwith the Authority under sub-section(3) of section27

of the Act, to perform subscriberinterfacefunctions under the National Pension System-Swavalambanand have the f'unctionalrelationshipwith a known customer base for delivery of some socio-economicgoodsor services: (d)

"annuity serviceprovider" meansa life insurancecompanyregisteredand regulatedby the Insurance

Regulatoryand DevelopmentAuthority and empanelledby the Authority for providingannuityservicesto the subscribelsof the NationalPensionSystem; (e)

"citizenof India" meansd personqualifiedto be a citizenof India underthe CitizenshipAct, 1955(5?

of 195-5); (f)

"complianceofficer" meansa personof responsibilityfrom the NationalPensionSystemTrust or any

other intermediary or entity entrusted with the responsibility of receiving, processing and settlement of withdrawal claims fiom the subscribersunder the National PensionSystem and responsiblefor monitoring compliance.of the provisions of the Actor the rules or the regulations made or notifications, guidelines or instructionsi.ssued by the Authority from time to tinre;

:

20

ffi

(g)

"governmentsectorsubscriber"meansa subscriber enrolledin the Nationalpensionsystem through the nodal offices of the central Government or the state Governmentsand registeredas such with the central recordkeepingagency; (h)

"National Pension system-Lite" means

a feature of optimized group model of National pension system for personsbelonging to unorganized sectorof which the National pension System-Swavalamban is a componentwhereGoyernmentof India co-contribution is admissibie; (i)

"PermanentRetirementAccount Number (PRAN)" meansa unique identification number allotted to eachsubscriberby the centralrecordkeeping agency; "Swavalantbansubscriber"means a subscriberwho is registeredas such with the central recordkeeping agencyunder the National Pensionsystem and where Govemmentof India co-contributionis admissible: CI)

(2) words ande3pressiinsuse'cl andnot clefinedin thesereguiationsbut defineclin the Act shail havethe meanings assigncd to thentin theAct.

ffi il^{s

CHAPTERII EXIT FROM NATIONAL PENSION SYSTEM For the purposeof exit from the NationalPension System,the subscribersare categorizedand definedas, (l) Governmentsector, (2) All citizens including corporate sector and (3) Nps- Lite and swavalamban subscribers'the exit regulationsspecifiedhereunder shall appry accordinglyto the categoryto which the subscribers. 3'

Exit from Nationhl Pension system for government sector subscribers.-Agovernment sector subscribershall exit from the NationalPension Systemin the mannersspecifiedhereunder,namely:(a) where the subscriberwho, upon attainingthe age of superannuationas prescribedby the servicerules applicableto him or her, retires,'thenat least forty percent, out of the accumulatedpenslonwealth of such subscriber shall be mandatorily utilized for purchase of annuity providing for a monthly or any other periodicalpensionand the balanceof the accumulatedpensionwearth,after such utilization, shall be paid to the subscriberin lump sum: Providedthat,-

ru$ 3fi,{

(i) the fbltowing shall be the default annuityconrractthat will be appticableand wherein the annuitycontract shall provide for annuity for life of the subscriber and his or her spouse(if any) with provision for return of purchasepriceof the annuityand upon the clemiseof suchsubscriber,the annuity be re-issued to the family membersin the order specified hereunderat a premium rate prevalentat the time of purchaseof such annuity by utilizing the purchaseprice requiredto be returnedunderthe annuitycontract(until all the family members in the orderspecifiedbelow are covered) : (a) living dependentmotherofthe deceased subscriber; (b) living dependentfatherofthe deceased subscriber.

--t

Icrq IIT*€'r€ 4j

qKfr ST {lsFF[ : sTqTt]l{ul

2L

After the coverageof all the family membersspecifiedabove,the purchaseprice shall be returnedto the survivingchildrenof the subscriberand in the absenceof children,the legalheirsof the subscriber;as?naybe the subscriberwho wishesto opt out of the defaultoption mentionedaboveand wishesto choosethe annuity contractof his choicefrom the availableannuitytypesor contractswith the annuityserviceproviders,shall be requiredto specificallyopt for suchan option. (ii) where the subscriberdoes not desire to withdraw the balanceamount, after purchaseof mandatory annuity,suchsubscribershall havethe option to deferthe withdrawalof the lump sum amountuntil he or she attainsthe ageof seventyyears,providedthe subscriberintimateshis or her intentionto do so in writing in the specified fr.rrmat least fifteen days before the attainmentof age of superannuationto the National Pension SystemTrust or an intermediaryor eniity authorizecl by the Authority for this purpose; (iii) where the subscriberdesiresto defer the purchaseof annuity, he or she shall have the option to do so for a maximum period of three years from the date of attainmentof age of superannuation,provided the subscriberintimateshis or her intentionto do so in writing in the specifiedform at leastfifteen daysbeforethe attainment of age of superannuationto the National Pension System Trust or an intermediary or entity authorizedby the Authoriry for this purpose.It shall be a condition precedentto opt for such defermentof annuity purchasethat in case if the death of the subscriberoccurs before such due date of purchaseof an annuityafter the deferment,the annuity shall mandatorilybe purchasedby the spouse(if any)'providingfor annuitytor lii'e of the spousewith provisionfor returnof purchaseprice of the annuity and upon the demise of such spousebe re-issuedto the family membersin the order of preferenceprovided hereunderat a premium rate prevalentat the time of purchaseof the annuity,utilizing the purchaseprice requiredto be returnedunderthe contract( until all the membersgiven below arecovered):(a) living dependentmotherof the deceased subscriber: (b)

living dependentfatherofthe deceased subscriber.

After the coverageof zrll such members,the purchaseprice shall be returned to the surviving children of the subscriberattd in absenceof childrenlegal heirsof the subscribers as applicable; (iv) where the subscriberde.siresto def-erthe withdrawal of lump sum amount or, the purchaseof annuity, the subscribershall be allowed to do so, providedthe subscriberagreesto bear the maintenancechargesof the PermanentRetirementAccount, including the chargespayableto the centralrecordkeepingagency,pension fund,TrusteeBank or any otherintermediary,as may be applicablefrom time to time, (v) wherethe accumulatedpensionwealth in the PermanentRetirementAccountof the subscriberis equalto or lessthana stttl of two lakh rupees,the subscribershall havethe option to withdraw the entireaccumulated pensiottwealthwithout purchasingannuity and upon suchexerciseof this option, the right of suchsubscriber to receive any pension or other amount under the National Pension System or from the governmentshall extinguish; (b)

where the subscriberwho, before attaining the age of,$uperannuationprescribedby the service rules applicableto him or her, voluntarily retires or exits, then at least eighty per cent. out of the accumulated

'J'1 THE GAZETTE OF INDIA: EXTRAORDINARY I I

IPARr III-SEC.

pensiottwealth of the subscribershall mandatorily be utilized for purchaseof annuity and the balanceof the accumulatedpensionwealth, after such utilization, shall be paid to the subscriberin lump su}: Providedthat the annuitycontractshall provide for annuity for life of the subscriberand his or her spouse(if any) with provision for return of purchaseprice of the annuity and upon the demiseof such subscriberthe annuity be re-issuedto the family membersin the order specified hereunderat a premium rate prevalentat the time of purchaseof the anltuity, utilizing the purchaseprice requiredto be returnedunder the annuity contract(until all the membersgiven below are covered) ;_ (i) (ii)

living dependentmotherof the deceased subscriber; living dependentfatherofthe deceased subscriber.

After the coverageof all such members,the purchaseprice shall be returnedto the surviving

childrenof the

subscriberand in absenceof children,the legalheirsof the subscriberas

may be applicable. Provided'thatif the accumulatedpensionwealthof the subscriberis more than one lakh rupeesbut the age of the subscriberis less than the minimum age required for purchasingany annuity from any of the empanelledannuity service providers as chosen by such subscriber,such subscribershall continue to subscribeto the National Pensionsystem, until he or she attainsthe age of eligibility for purchaseof any annuity: Provided-further that if the accumulatedpension wealth of the subscriberis equal to or less than one lakh rupees'such subscribershall have the option to withdraw the entire accumulatedpensicinwealth without purchasingany annuityand,upon suchexerciseof this option the right of the subscriberto receiveany pension or otheramountsundbr the National PensionSystem shall extinguishand any suchexerciseof this option by the subscriber,beforethe regulationsare notified,shall be deemedto havebeenmadein accordance with this regulation; (c)

where the subscriberwho, before attaining the age of superannuation, dies, then ar least eigh5y percentout of the accumulatedpensionwealth of the subscribershall be mandatorilyutilized for purchaseof annuityand balaricepensionwealth shall be paid as lump sum to the nomineeor nomineesor legal heirs,as the casemay be, of suchsubscriber: Providedthat,(i) The annuity contract shall provide for annuity for life of the spouseof the subscriber(if any) with provisionfor return of purchaseprice of the annuity and upon the demiseof suchspousebe re-issuedto the family membersin the order specifiedhereunderat the pr€mium rate prevalentat the time of purchaseof the annuity'utilizing the purchaseprice requiredto be returned under the contract(until all the membersgiven belowarecovered;:(a). living dependentmotherofthe deceasedsubscriber ; (b) living dependentfarherof the deceased subscriber After the coverageof all such members,the purchaseprice shall be returned to the surviving children of the subscriberand in absenceof children,the legalheirs of the subscriberasapplicable.

Iqfi III-€rs

4]

rrrfd :fi'l {lqwl

in the permanentretirementaccountof the (ii) Provided further that if the accumulatedpensionwealth the than two lakh rupees'the nomineeor legal'heirsas subscriberat rhe time of his deathis equalto or less to entire accumulatedpension wealth without requiring case may be, shall have the option to withdraw the the right of the family membersto receiveany' purchaseany annuity and upon such exerciseof this option shall extinguish; pensionor otheramountsunderthe NationalPensionsystem corporate sector subscribers.-Any subscriber' 4. Exit from National pension System by citizens, including the National Pension system' shall exit from the including a corporate sector subscriber,registeredunder namely:National PensionSystemin the mannerspecifiedhereunder' in accofdancewith the servicerules (a) wherea subscriberattainsthe ageof sixty yearsor superannuates of the accumulatedpensionwealth of suchsubscriber applicableto suchsubscriber,at leasttorty percentout providingfor a monthly or any other periodicalpension shall be mandatorilyutilized for purchaseof annuity such utilization, shall be paid to the subscriberin and the balancec.rfthe accumulatedpensionwealth,atler is equal to or less than a sum of two lakh lump sum. In case.the accumulatedpensionwealth of the subscriber the entire accumulatedpension wealth without rupees,the subscribershall have the option to withdraw anYannuitY: pugchasing Providedthht,systembeyondthe ageof sixty years the subscribercan continueto subscribeto the NationalPension exceedingsevenfyyears'until so specified,by intimatingin writing' the age'not or the ageof superannuation, (i)

which he would like to contributeto his individualpensionaccount. Trust or any illterrnediaryor entity authonzed such intirrraiionshall be given ro rhe NationalPensionSystem the subscribermay exit at any point of by the Authority for this purpose. Notwithstandingsuchintimation, in writing to the National PensionSystenr time, tiom the National PensionSystemby subniittinga request for this purpose; Trust or any intermediaryor entity authorizedby the Authority lump sum amount until he or she the subscribershall have the option to defer the withdrawal'of his or her intentionto do so in writing in the artainsthe ageof sevenryyears,providedthe subscriberintimates as sixty yearsor' the ageof superannuation' specifiedform at leastfifteen daysbefbrethe attainmentof ageof any intermediary or entity authorized by the the case may be, to the National Pension System Trust or

(ii)

Authorityfor this Purpose;

for a maximum period of three the subscribershall have rhe oprion to defer the purchaseof annuity of superannuation'as the casemay be' years,from the date of attainmentof sixty years of age or the age writing in the specifiedform at leastfifteen providedrhe subscriberintimateshis or her intentiouto do so in of superannuation,as the case rnay be' to the days before the attainment of age of sixty yeafs or the age entity authorizedby the Authority for this National pensisn systenr Trust or any intermediaryor other (iii)

pulposel

24

CAZETTE OF INDIA: EXTRAORDINARY uril-JINARY

[P4nr III_SEC. 4]

(iv) the subscribershall be allowed to continue to subscribe,defer the withdrawalof lump sum amountor the purchaseof annuity,as the casemay be, providedthe subscriberagreesto bearthe maintenafrce chargesof.the PermanentRetirementAccount, including the chargespayable to the centralrecordkeepin g agency,pension fund, TrusteeBank or any otherintermediary,as may be applicabrefrom time to time; (b) where the subscriberwho, before attaining the age of sixty years or the age of superannuationas prescribedby seivice rules, voluntarily opts to exit from the national pension system,the option so exercised shall be allowed only upon such subscriberhaving subscribed to the nationalpensionsystemfor at leasta minimum period of ten years. In case of such subscriber, at least eighty percent out of the accumulated pension wealth shall be mandatorily utilized for purchaseof annuity and the balance of the accumulated pensionwealrh,after suchutilization,shall be paid to the subscriberin lump sum: Providedthat if the accumulatedpensionwealthof the subscriberis more than one lakh rupeesbut the age of the subscriberis less than the minimum age requiredfor purchasingany annuity from any of the empanelledannuity service providers as chosen by such subscriber,such subscribershall continue to subscribeto the National PensionSystem,until he or she attainsthe age of eligibility for purchaseof any annuity: Provided further that if the accumulatedpension wealth in the .permanentRetirement Account of the subscriberis equalto or lessthan one lakh rupees,such subscribershall havethe option to withdraw the entire accumulated pensionwealthwithout purchasingany annuity; (c) where the subscriber who, before attaining the age of sixty years or the age of superannuationas prescribedby the respectiveservicerules applicable to hirn or her, dies, then the entire accumulatedpension wealthof the subscribershail be paid to the nominee or nomineesor regarheirs,as the casemay be. of such subscriber: Providedthat,(i)

the nomineeor farnily membersof-the deceasedsubscriber shall have the

option to purchaseany of the annuitiesbeing offered upon exit, if they so desire, white applyingfbr withdrawalof benefitson account permanent of deceased subscribers' RetirementAccount; (ii) in case' the nomination is not registered by the deceasedsubscriberbefore his death, the accumulated pensionwealth shall be paid to the family memberson the basis of the legal heir certificateissuedby the Revenueauthoritiesof the State concernedor the successioncertificate issued by a court of competent jurisdiction. 5' Exit from NationalPensionSystemby NPS-Lite and swavalambansubscribers.-Anysubscriberregistered underNationalPensionsystem as NPS-Lite or Swavalamban subscriber,can exit from the Natiorralpension System,in the mannerspecifiedhereunder,namely:_ (a)

upon a subscriber,attaining the age of sixty years,at Ieastforty percentof the accumulatedpension wealthof suchsubscribershall be mandatorilyutilized for purchaseof annuityprovidingfor a monthly or any otherperiodicalpensiortand the balanceof the accumulated pensionwealth,after such utilization,shall be paid to the subscriberin lump sum; ,

qr{rIII-€!g

4l

qftfrfilNItlT:

sTglgRul

Providedthat.i (i) for a Swavalambansubscriberthe annuity purchasedby utilizing the mandatoryminimum of folty percent,. of the accumulatedpensionwealth of the subscribershall yield at leasta monthly annuityor pension of one thousandrupees,iailing which the entire accumulatedpension wealth shall be annuitisedin such a manner so as to yield at least a monthly annuity or pensionof one thousandrupeesand balanceif any therealtershall be paid in lump sum to the subscriber. However there ihall be no implicit or explicit guaranteethat thc annuity purchasedeven with entire accumulatedpensionwealth would yield a monthly annuityor pensionof one thousandrupees; (ii) if the accumulatedpensionwealth of the subscriberis equalto or lessthan a sum of one lakh rupees, such subscribershall have the op,ion to withdraw the entireaccumulatedpensionwealth without purchasing any annuity and upon such e'x,ercise of this option, the right of the subscriberto receive any pensionunder the NatiorralPensionSystemshall extiuguishand arry such exerciseof this option by the subscriber,beforethe regulationsare notified, shall be deemedto have beenrnadein accordancewith this regulation; (b) at any time, beforeattaining the ageof sixty years,subjecthoweverthat at leasteightypercentout ofthe accumulatedpensionwealth shall be mandatorilyutilized for purchaseof annuity and the balanceof the accumulated fension wealth,aftersuchutilizationshall be paid to the subscriberin lump sum: Providedthat for a Swavalambansubscriberthe annuity purchasedby utilizing the mandatoryminimum of forty percent.Out of the accumulatedpensionwealth shatlyield at leasta monthly annuity or pensionof one thousandrupeesper month, failing which the entire accumulatedpensionwealth shall be annuitisedin such a mannel'so as to yield at least a monthly annuity or pensionof one thousandrupees and balanceif any thereaftershall be paid as lump sum to the subscriber.However there shail be no implicit or explicit guarantee that the annuity purchasedeven with entire accumulatedpensionwealth would yield a monthly annuity or pensionof onethousandrupees: hovided that subjectto the provisionsof this clause,where the accumulatedpensionwealth doesnot exceed one lakh rupees,the whole of the pensionwealth shall be paid to the subscriber,without any annuitisationif the snbscriberhascontinued. in the schemefor a minirnumperiodof twenty-fiveyears; Provided further that the migration of Swavalambansubscriberor subscribersto any other pensionschemeof Goventmentof India and as approvedby the Authority.shall not be deemedas an exit and withdrawal for the purposesof theseregulations. (c) where a subscriberwho, before attaining the age of sixty years, dies, the entire accumulatedpension wealthof the subscribershall be paid to the nominee,or the legal heir of suchsubscriberand thereshallnot be any conditionof mandatorypurchaseof annuity and provision of a monthly or periodicalpensionand there shall not be any requirement of the annuitisation of thb accumulated pension wealth of such deceased

1 THE GAZETTE OF INDIA: EXTRAORDINARY

ART III_.SEC. 4I

subscriber.The nomineeor family membersof the deceased subscribershall have the option to purchaseany of the annuitiesbeing offered upon exit, ifthey so desire:

r

Provided that, where a nomination is not registeredby the subscriber before his death, the accumulated pensionwealthof suchsubscribershall be paid to the family members on the basisof the legal heir certificate issuedby the Revenueauthoritiesof the Stateconcernedor the successioncertificate issuedby a court of jurisdiction. competent 6' Conditionsto apply for exit and withdrawal.- A subscriberregisteredunder the NationalpensionSystem shall not exit therefrom, and no withdrawal from the accumulatedpension wealth in the Tier-l of the PermanentRetirementAccount of suchsubscribershall be permitted"exceptas specified hereunder,namely:(a) no pensionor accJrmulated pensionwealthin Tier-I accountof the PermanentRetirementAccountof the subscriberunder the National PensionSystemon accountofpast or presentservices, shail be liable to seizure, attachmentor sequestration by processof any court at the instanceof a creditor,for any demandagainstthe subscriber,or in the satisfactionof a decreeor order of any such Court except where the Nationalpension SystemTrust or its authorisedrepresentativehas accordedprior sanctionfor assignmentof the pension wealth accumulatedin the pension account of the subscriber,which shatl be restricted to such limit as prescribedin Regulation8; (b)

any assignment,pledge,contract,order,saleor securityof any kind madeby any subscriberof the National PensionSystem,with respectto any benefit receivableby him or her under the National pension S.ystem, or in respectof any money payableat or on accountof any suchbenefitto suchsubscriber underthe NationalPensionSystem,or for giving or assigningany future interesttherein shall be null and void except where the National PensionSystem Trust or its authorizedrepresentative has accordedprior permissionfor suchassignmentof the pensionwealth accumulatedin the pensionaccountof the subscriberand which shall be restrictedto such limit as prescribedin Regularion8 to which the assignment was agreedor approvedby the NationalPensionsystemTrust or its authorisedrepresentative; (c) the President of India or the Governorof a State,as the case may be, if so providedin the service rules, governingthe employmentof the subscriber,reservesthe right of withholding the part of pension wealth' accumulatedthroughco-contributionsmadeby the CentralGovenrment or the StateGovernment,as employer to the Tier-I account of the National PensionSysternaccountof the subscriberand the investment incomeaccruingthereon,for the purposeof recoveryof the whole or part of any pecuniarylosscausedto the Central Governmentor the State Government,provided such loss is established, in any depafimentalor judicial proceedings, initiatedagainstsuchsubscriberby the employerconcerned.. Such right of withholding shall have to be exercisedprior to the date of superannuarion of the subscriber, pursuantto a notice to be given to the National PensionSystem Trust or an entity to whom such authorization has been given, and seeking to withhold the said pensionwealth of such subscriber.upon such right of withholding beingi'alidlyexercised:.:

1

q[{d iFT llEltt-l : sRnqRUI

Iqm III*u!-s 4]

(i)

27

the pensionwealth which are payableunder the NationalPensionSystemshall not be paid ro such

subscriberuntilthe conclusionof the departmentalor judicial proceedings,as the casemay be and subJectto the final orders,passedin suchproceedings (ii) the amountwithheld as specifiedin sub-clause(i) shall remainsubscribedro rhe schemein the mode and mannerin which it was held prior to resortingto suchactionby the concernedGovernmentand the final settlementof the withheldamountshall be madeby the NationalPensionSystemTrust, or any intermediaryor other entity, authorized for this purposeby the Authority, normally within ninety days of the receipt of an appropriateorderfiorn the concernedGovemment; (iii) the amount withheld becomespayableto the subscriberon the finat settlemenr,as certified by the concernedGovernmentdepartmentwhich has soughtwirhholdingof such benefits,and shall be paid to the subscriberas soorla.spossibleand in no casebeyondninety days of receiptof the final order by the National PensionSystemTrust or any otherentity or person,authorizedfor the purposeby the Authority; (e) If the subscriberor the family membersof the deceasedsubscriber,upon his dearh,availsthe option of additionalrelief on deathor disability providedby the Government,the Governmentshall haveright to adjust or seektransferol'the entireaccumulatedpensionwealthof the subscriberto itself. The subscriberor family membersof the subscriberavailing suchbenefitshall specificallyand unconditionallyagreeand undertaketo .l

transferthe entire accumulatedpensionwealth to the Government,in lieu of enjoying or obtaining such additional reliefs like family pension or disability pension or any other pensionary benefit from such Governnrentauthority; (g) all benefitsreceivable,includingthe purchaseof annuityas specifiedundertheseregulations, shallbe arrangedto be paid by the National PensionSystemTrust or the centralrecordkeepingagencyor any other entity authorizedfor the purposeby the Authority after processingthe withdrawalapplicationsin accordance with the provisionsof theseregulations,or any guidelines,order or notification, as may be issuedby the Authority,from time to time; (h) for a subscriber,exitiirg from Tier-I accountunderthe NationalPensionSystem,the amountslying in the Tier-II accouni shall also be monetizedandclosedsimultaneously upon paymentof the eligible benefit; CHAPTERIII WITHDRAWALS. PURPOSE,FREQUENCY AND LMITS I.INDER NATIONAL PENSION SYSTEM 7' Conditionsof withdrawalsunder National PensionSystem.-The National PensionSystemTrust or the central recordkeepingagency acting on behalf of ttre National PensionSystemTrust or any other entity authorizedby the Authority fbr the purpose , may on receipt of an application for withdrawal from a subscdberin the specifiedfbrm and subjectto fulfillment of conditionsso specifiedmay allow withdrawal from the National PensionSystem in the mode and mannerpermittedunder theseregulations,guidelines, circulars,ordersor notitications issuedby the Authoritytiom time to time: Providedthat the subscribershall be requiredto submitthe appiicationform for withdrawal.specifiedfor the purpose,along with documents,so specified,andcomply with.the requirementscontainedin the operational

ZB

THE GAZETTE OF INDIA:EXTRAORDINARY

IPARTIII*SEC.4]

guidelinesissuedby the Authority with respectto the permissiblewithdrawalsunder the National Pension System.

r

8. The following withdrawalsshall be perinittedunderNationalPensionSystem.-( I ) A partialwithdrawalof accumulatedpensionwealth of the subscriber,not exceedingtwenty-fiveper cent. of the contributionsmade by the subscriberand excluding contribution made by employer,if any, at any time before exit from National PensionSystemsubjectto the termsandconditions,purpose,frequencyand limits specifiedbelow:(A) Purpose:A subscriberon the dareof submissionof the withdrawal form, shall be permittedto withdraw not exceedingtwenty-five percentof the contributionsmade by such subscriberto his individual pensionaccount, tor any of the following purposesonly;(a) for Higher educationof his or her childrenincludinga legally adoptedchild (b) for the marriageof his or her children, including a legally adoptedchild; (c) for the purchaseor constructionof a resiclentialhouseor flat in his or her own nameor in a ioint name 'with his or her legally weddeddpouse. In case,the subscriberalreadyowns either individually or in the joint name a residentialhouseor flat,other than ancestralproperty, no withdrawal under theseregulationsshall be permitted; (d) tbr treatrhentof specifiedillnesses: if the subscriber,his legally weddedspouse,children,includinga legally adoptedchild or dependentparents suffer from any specified illness, which shall comprise of hospitalization and treatmentin respectol thefollowingdiseases: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv)

Cancer; Kidney Failure (End StageRenal Failure); Primary Pulmonary Arterial Hyperrension; MultipleSclerosis; Major Organ Transplant; CoronaryArtery BypassGraft; Aorta Graft Surgery; Heart Valve Surgery; Stroke; Myocardiallnfarction Coma: Total blindness; Paralysis; Accident of serious/lif'e threateningnarure. any other critical illness of a life threateningnature as stipulated in the circulars, guidelinesor notifications issuedby the Authority from time to time.

(B) Limits: the permitted withdrawal shall be allowed only if the following eligibility criteria and limit for availingthe benefitarecompliedwith by the subscriber:(a) the subscribershall havebeenin the NationalPensionSysterirat leastfor a period of last ten yearsfrom the dateof his or herjoining;

[qrq tlt-so-e +]

qr{frq.t lttFt!{ : }T{trrrRq

29

(b)

the subscribershall be pernrittedto withdraw accumulationsnot exceedingtwenty-five per cent of the contributions madeby him or her andstandingto his or her creditin his or her individualpension agcount,as on the dateof applicationfor withdrawal; (C ) Frequency: the subscribershall be allowed to withdraw only a maximum of three times during the entire tenureof subscriptionunder the NationalPensionSystemand not lessthan a period of five yearsshall have elapsedfltm the last date of each of such withdrawal.The mandatory."quir"*ent of five years having elapsedbetweentwo withdrawalsshall not apply in caseof "treatmentfor specifiedillnesseso, in .u.. oT withdrawalarisingout of exit from National pensionSystemdue to the death of the subscriber.The request fbr withdrawalin the specifiedfbrm, shall be submittedby the subscriber, along with relevantdocumentsto the centralrecordkeeping agencyor the NationalPensionSystemTrust, as *uy u. specified,for processingof suchwithdrawalclaim' Providedthat where a subscriberis sufferingfrom any illness,specifiedin sub-cluluse (d), the requestfor withdrawalmay be submittecl,through any family memberof suchsulscriber. (2) A subscriberhaving a yalid and activeTier-II accountof the PermanentRetirementAccount canwithd.raw theaccumulated wealtheitherin full or part,at any time by applyingfor suchwithdrawal, ,;;;ppl;; fbrm and in such mode and manner,as may be specifieduy irr" Authority in this behalf.""There shall be no limit on suchwithdrawalstill the accounthassufficientamountof accumulated pensionwealthto takecareof theapplicable chargesandthe withdrawalamount: Providedthat the Tier-II accountshall standautomaticallyclosedat the time of exit of the

subscriberfrom the NationalPensionSystcm,even if an applicationso specifiedfor the purpose has not been receivedfrom the subscriber,and'theaccumulatedwealth in suchaccountshall be fransferred to the bank accountprovidedby the subscriber. *t,it" submittinghis applicationfor exit from the NationalpensionSystem. 9' Withdrawalprocess.-( I ) The NationalPensionSystemTrust or any otherintermediary or entity authorized by the Authority for the said purposeshall be responsiblefor processing and authorizingapprovingthe withdrawal and exit claims lodged by the subscriber in accordancewith the provisionsof the Act, these regulations,directions.guidelinesissuedby the Authority and the Pension Fun,JRegulatoryand Development Authority lNational PensionSysternTmst) Regulations,20l5,where applicable. The National pension SystemTrust shall ti'anrcsuitableoperationalprocesses or guidelinesfbr facilitatingwithclrawalsand Exit of subscribers fiom NationalpensionSvstem. CHAPTERIV ANNUITY PURCHASEAND ANNUTTYSERVICEPROVIDERS I0'

Conditionsof annuitypurchaseupon exit.- (l) The subscriber, at the time of exit, shall mandatorily purchasean annuityprovidingtbr a monthlyor periodicalannuityor pension as specifiedip theseregulations. Suchannuityshall be purchasedfrom an annuityserviceproviderwho is empanelled by the Authority. of option of the artnuityanclthe type thereofshall be macleby the subscriberat the time {2) The exerci'se of exit from the National Pensi
30

THE GAZET-TEOF INDIA: EXTRAORDINARY

IPARTUI*SEC.4l

by the annuity serviceprovider, for the free look period as provided in the terms of the annuity contractor as specificallyprovidedby the InsuranceRegulatoryand DevelopmentAuthority.

r

(4) The subscribershall have an option to choosefrom various types of annuities,provided by the a.nnuiry serviceprovider and the annuity so chosenshall be provided by the empanelledaffiuity serviceprovider. (5) There shall be a default annuity service provider and a default annuity scheme for the benefit of subscribersexiting fromlthe National PensionSystem. The information on the default annuity service provider and default annuity schemeapplicableshall be such as may be specifiedby the Authority and placed on its website,apartfrom communicatingto the subscriberthroughcirculars,guidelinesor notificationissued

'

by it. Suchdefault annuity schemeshall not be availableor applicablein the caseof Governmentsubscribers coveredunderregulation3. I L Empanelmentof u'nnirityserviceproviders.-(l ) On and from the commencementof theseregulations,an applicant,meeting the eligibility criteria as specified in these regulationsfor grant of an empanelment certificate to act as an empanelledannuity service provider, shall make an application in the specifiedform accompaniedby a empanelmentfee referredto in sub-regulation(2) and such documentsin supportthereon, as may be specifieclby the Authority. (2) One time empanelmentfee of rupeesone lakh, shall be submitted along with the application,to the Authority. The empanelmentfee shall be realizedby the Authority within fifteen days from the date of sendingintimation of grant of certificate of empanelmentunderregulation l7: Frovided that every empanelledannuity service provider shall, at the time of renewal of empanelment certificate pay such renewal fees, if any, as may be specified by the Authority, from time to time through a circular,orderor notificationissuedby it. (3) An application,not complete in all respectsand not conforming to the instructionsspecified in the . applicationform and theseregulatiorrsshall be rejected. Providedthat,beforerejectingany suchapplication, the applicantshall be given a reasonableopportunity to withdraw or complete the application in all respects and rectify the errors, if any. The Authority may seek such additional information for disposal of the applicationfrom the Applicant as may be deemedrelevant. (4) An annuity service provider empanelledby the Interim Pension Fund Regulatory and Development Authorityprior to the commencement of theseregulations, may continueto act as such,for a periodof ninety days from the notification of theseregulationsor, if it makesan application for grant of empanelmenttill the disposalof its applicationby the Authorityl 1?. Eligibility criteria for grant of certificate.-(l) The following shall be the eligibility criteria for any applicantto act as an empanelledannuityserviceprovider:(a)

any Life lnsuranceCompany registeredand regulatedby the InsuranceRegulatory and Development Authorityand dealingwith annuityproductsin the domesticmarketfor the last threeyears;

(b)

the applicanthaving a minimum n-etworth of rupeestwo hundredand fifty crores;

[ lTrrt III-rdT s 4]

(c)

qKf, s.I ltEtq? : 3T{11gRuI

the applicantshall have conrpetencyin design,developrnentand offering of annuity products, which'is demonstrable by the detailsof the annuity productsfiled with the InsuranceRegulatoryand DeqBlopment Authority:

(d)

not barredfiom dealing with or selling annuitlzproductsin the market by the InsuranceRegulatory and Development Authr-lrity;

(e)

any othercriteriaas may be specifiedby the Authority from time to time throughresolutions,notifications, circulars,guidelines,normsor memoranda.

(2) The Authority reservesthe right to waive or modify someor all of the above criteria for reasonsto be recordedin writing. I 3. Disclosureof information.-( I ) The Authority, havingregardro the interestof the subscribersmay, have the right to discloseto thepublic, of the informationon the applicationmadeby the applicant. (2) Any rnaterialchangein the informationfurnishedto the Authority while making the applicarionfor empanelment or subsequently shall be intimatedto the Authority by the annuityserviceproviderpromptlybut not laterthanthir"tyderysof the occurrenceof suchchange. 14.Furnishingof informationand clarification.-(l) The Authoritymay requirethe applicantto furnishany f"urtherinformation or' clariticatiou,fbr the purposeof disposalof the applicationfor empanelment,and, thereafter'in regard to any other matter as may be deemednecessaryby the Authority. The applicant or its principal.officer shall, if so required,appearbeforethe Authority for a personalrepresentation in connection with.theapplication; (2) The applicantshall furnish suchinformationand clarificationto the satisfactionof the Authoritv. within thetime speciiiedin rhisregardby the Aurhority. l5' Verificationof information.-(l) While considering the applicationand the informationfurnishedby the applicantanclits eligihility,the Authority may, if it so clesires, verify the informationin any manner,as it deems necessafy'inclucling by physical verification of documents,office space, and inspection of the availabilityof office spilce,infrastructure,and technologicalsupportwhich the applicantis requiredto have. (2) For the purposeol' verification of information, the Authority may appoint any person including any of its officersor an auditoror an externalagency. l6' Consider"ation of application.-( I ) For consideringthe eligibility of the applicantanclgrantof certificateof empanelmentto such applicant, the Authority shall take into accountall matterswhich it deemsrelevant to the activities in the pensiott sector and the National Pension System, including but not timited to the tbllowing:(a)

whetherthe :rpplicantor any of its associateshave in the past been refusedgrant of empanelment certificateby any of the flnancialsectorregulatorsin India irrcludingthe ReserveBank India, of the Securities

1 GAZETTE OF INDIA: EXTRAORDINARY

ARTIII-SEC.4l

and ExchangeBoard of India, the InsuranceRegulatoryand DevelopmentAuthority and the Authority and so, the groundfor suchrefusal; t

(b)

whetherthe applicanthas in the pastfive yearsbeen imposedwith penaltiesby any of the financial regulatorssuch as the ReserveBank of lndia, the Securitiesand ExchangeBoard of India, the Insurance Regulatory and Development Authority and the Authority or by a court of law or tribunal, on matters concemingviolation of provisionsof the laws, the regulationsmade or directions,guidelinesand circulars issuedby the respectiveregulator and if so, the ground for suchrefusal; (c) whether the applicant satisfiesthe eligibility criteria and other requirementsas specifiedin

these

regulations; (d)

whetherthe grant of a certificateto the applicantis in the interestof the subscribersand or the orderlv developmentof pensionsectoror of the NationalpensionSystem. (2) While consideringthe application,the Authority may invite the applicantto make a presentationto the Authority on sucha date,time and placedetemrinedby the Authority. The purposeof suchpresentations shall be to allow the applicantsto presentits proposalto the Authority and to explain the key strengthsin its proposal. (3) Any applicationfor grantof certificateof empanelment,(a)

whidh is not complete in all respects and does not conform to the requirementsin the and the requirements specifiedin theseregulations; (b)

which doesnot c.ontainsuchadditionalinformationasrequiredby the Authority;

t"l

which is incorrect,falseor misleadingin nature;

(d)

where the applicant is not in compliance with the eligibility requiremenrsas set out under thcse regulations; (e)

which in the opinion of the Authority is not in the interesrof subscribersand or rhe ob.jectiveof . orderly developmentof the pensionsectoror the National pensionSystem; (0

wherethe applicantis not a 'fit and properperson';

shall be rejectedby the Authority for reasonsto be recordedby it in writing. (4) Beforerejectingan application,the applicantshall be given an opporruniryin writing to make good the deficiencieswithin the time specifiedby the Authority,for tbe purpose: Providedthat where an applicationis rejectedfor the reasonthat it containsfalse or misleaclinginfbrmaticin, no such opportunity may be given and the applicant shall not make any application for grant of certificate undertheseIegulationsor any otherregulationsfor a periodofone yearfrom the dateofsuch rejectioh. (5) An applicationfor grant of certificateof empanelment, under theseregulations,which is completein all respects,shall be disposedof by the Authority, within a period of sixty days tiom the date of receipr of such request. -l

I qr{ruT-uu-s 4]

qKf, ;6I {lEMl

; 3T{lTtlltol

33

17.Procedurefor grantof certificateof empanelment;( I ) The Authority on being satisfiedthat the applicant is eligible, shall grant a certificate of empanelmentin the form specified in Annexure III an&send an intimationto the applicantin this regard: Providedthat where a pendingproceedingbefbre the Authority or any court or tribunal may result in the suspension or cancellationof the certificate,the Authority may give a conditionalcertificatbof empanelment. (2)

Within thirty working days of the date of receiptof certificateof empanelment,the annuity service

provider shall enter intcl an agleementwith the National PensionSystemTmst or the centralrecordkeeping agencyfor the purposeof operationalization of the processfor purchaseof annuitiesby the subscribers of the NationalPensionSystem. 18. Conditions of certifigate of Empanelment.-Any

certificate of empanelmentgrantedby the Authority

to an annuityservic'eproviderdhallbe subjectto the following conditi.ons, namely,(a)

wherethe annuityserviceproviderproposesto changeits statusor constitution,it shallintimateto the

Authority of such information along with the approval obtained from the Insurance Regulatory and DevelopmentAuthority,fbr continuingto act as an annuityserviceprovider; (b)

it shall pay the applicablefeesin accordance with theseregulations;

(c)

it shall abide by the provisions of the Act, rhe rules and the regulationsmacleor any direction, guidelinesor circularsas may be issueclby the Authority thereunder;

(d)

it shalt abide by the provisionsof the InsuranceAct, 1938,InsuranceRegularoryand Development Authority Acr. 1999and the rulesand regulationsframedthereunder.

(e)

it shall meet the eligibility criteria and other'requirements specifiedin theseregulationsthroughout

the tenureof thecertit'icate of empanelment: Providedthat the Authority may impose such other and further conditions as it may deemfit in the ihterestof subscribers or fbr orderlydevelopmentof the NationalPensionSystemor the Pensionsector. 19. Effect of refusalto grantcertificateof empanelmentor expiry of certificate-ofempanelment.-(l) Where an existingannuity scrviceprovider has failed to apply for renewalof empanelmentof certificateand upon expiry of certiticateof empanelmentor has been refusedgrant of certificateof empanelmentunder these regulations,or hassurrendered its certificate,or hasbeendirectedto be wound up by an order ofa court,such annuityserviceprovidershall,(a)

forthwith ceaseto act as an annuityserviceproviderfor subscribersof NationalpensionSystem;

(b)

makeprovisionsas regardsliability incurredor assumedby the annuityserviceprovider,if any;

(c)

takesuch otheraction;within the time limit and in the manner,as may be requiredunderthe relevant

regulationsor as may be directedby the Ar*hority. (2)

While retusing grant of certificateof empanelmentunder these regulationsto an annuity service

provider, the Authoriti, rnuy impose such conditions upon the annuity service provider as it deemsfit for protectionof interestof the subscribers and suchconditionsshall be con-rplied with.

34

THE GAZETTE OF INDIA:EXTRAORDINARY

IPARTIII-SEC.4]

20. Period of validity of certificateof empanelment.-( I ) Subjectto compliancewith the provisionsof the Act, theseregulations,the certificate grantedto an annuity serviceprovider shall be valid unlesssunenderedby it or suspended or cancelledin accordance with theseregulations. (2)

An Annuity Service Provider who has been granted a certificate of empanelment,to keep such

empanelmentin force, shall pay a fee of rupeestwenty-five thousandwithin ninety days before the expiry of five yearsfrom the.dateof first empanelmentor dateof the paymentof fee Iast acceptedby the Authority, by way of makingan applicationin the specifiedform to the Authority. 2l . Exemptionsin certaincasesfronr eligibility criteria.-( I ) If any of the applicantsdoesnot fulfill any of the eligibility criteria as specifiedfor the annuity service provider, it may requestthe Authority through an applicationseekingexemption.from suchcriteria. (2) The Authority,if in its opinion feels, that the non-fulfillment of the eligibility conditionsof which relaxation is sought would not prejudicially affect the interest of the subscribers,and such relaxation would not hamperorderly developmentof the pensionsectorand more specificallythe NationalPensionSystem,it may grant exemption liom some of the criteria to such entity for reasonsto be recorded in writing, The Authority may in such circumstancesimpose such additional conditionsas it may deem fit for grant of bmpanelment. . 1

22. Duties and responsibilitiesof empanelledannuity service providers.-( I ) The main functions of a empanelledannuityserviceprovideris,(a) to provide different kinds of immediate annuitiesto the subscribersat the time of exit from the National PensionSystem; (b) to provide minimum immediate annuity variants options as required by the Authority and,to be able to provide any new variant as rcquired by the Authority from time to time in the interestof subscribersiri conformity with the Insurance Act, 1938 (a of 1938) and the Insurance Regulatory and Devel<;pment Authority Act, 1999(41 of 1999),and the rules,regulationsandguidelinesmadethereunder; (c)to provide monthly or any other periodical annuity paymentto the subscriberfor the annuity contract purchasedby the subscriberunderthe NationalPensionSystem; (d) the annuity serviceprovider shall be responsiblefor handling the grievancesand issuesrelatedto or arising out of the entering into the annuity contractwith the subscribersunder the National PensionSystem. (2) The initial customerinteractionfor the NationalPensienSystem,shall be,(a)

queriesofpotential subscribers addressing regardingpurchaseofannuities;

(b)

providing and displaying of InsuranceRegulatory and Development Authority approvedinformation

on annuities and application form or qffer document or other publicity material pertaining to immediate ' annuitiesavailableincludingtheannuitycalculators.

tqFI Iil-ls"s 4f

,

,i1{"4T {ql

' }T€TtIr{gI

(3) Subscriberregistrationfor purchaseof annuity,(a)

of applicat[onswith infrastructurerequiredfor receiptand acceptance to makeavailablethe necessary

the specifiedpremiumsand issuanceof annuitycontractsin line with the approvalsgrantedby the Insurance Regulatoryand DevelopmentAuthority; (b)

facilitate or provide infrastructurerequiredfor online purchaseof annuity productsby the subscribers

through the cenrral record keeping agencyregisteredand regulatedby the Authority, including the necessary applicationforms,literatureon the softwaresupport. The annuityserviceprovidershallprovidethe necessary availableannuiriesand other facilities availableto the subscribersthroughthe centralrecordkeepingagency modespeciliedtbr the purpose; systemor any <'rther (c)

issuanceof the annuiry contractas per the choice of the subscriberprovided in the annuity application

in line with these regulationsanh guidelines specified by the InsuranceRegulatory and Development Authority; (d)

the annuity service provider shall be responsiblefor delivering the monthly, quarterly or annual

pensionor aunriiryas chosenby the subscriberunderthe NationalPensionSystemin the annuityapplication form and the annuity contract entered by such subscriber.

However, in case of government sector

the aunuitypayableshallbe on morrthlybasisonly; subscribers, (e)

actionsfor the annuityserviceprovidershall be responsiblefor collection,verificationand subsequent

by subscribersunder.theNational PensionSystemfrom the issuanceof annuity contractsagainstpurchaseS or otherentity which is authorizedby the Authority for the agencyor its representative centralrecorclkeepiug purpose; (0

the alpuity service provider shall provide the information on annuity purchasesmade by the

subscribersuncler rhe National Pension System to the National Pension System Trust and the central recordkeepingagencyin the form, format and interval to be specifiedby the National PensionSystemTrust' (4)

The handling of subscriberrequestssuch as receiving,processingand effecting requestsfrom the

subscriberstbr change in address,nomination or any other activity in connection with the annuity contract enteredinto by theannuityserviceprovider. (5) The annuity serviceprovider shall be responsiblefbr receivingfrom, and resolving the, grievancesof undcr rhe NationalPensionSysternwho had purchasedthe annuityfrom it and follow them up till subscribers their redressalin accordancewith the grievanceredressalguidelinesor regulationsfor insurersissuedby the InsuranceRegulatoryandDevelopmentAuthority. (6) Any complainttrom a subscriberrelating to the servicesprovided shall be dealt by the annuity service provider antl settleclin accordancewith the provisions of the InsuranceRegulatory and Development Aurhority, Act 1999 (41 of !ggg), and the rules and regulationsnade thereunder,by the annuity service providerunderintimarionto the NationalPensionSystemTrust.This shallbe without prejudiceto the powers of the Authority to cancel or suspendthe empanelmentof the annuity serviceprovider or take such other asdeemedhecessaryin the subscriber'sinterest. measures 23. Feesanclchargesto be chargedfrom the subscribers.jThere shall not be any additional fees or charges other than the premium as approvedby the InsrrranceRegulatory and DevelopmentAuthority for the product

JO

THE GAZETTE OF INDIA: EXTRAORDINARY

[P.+nrIII-SEc. 4]

intermediationexpense but excludingany taxesimposedby the Government,Thereshall not be any additionai or chargefor the productissuedto the subscribers' a complianceofficer 24. Appointmentof complianceofficer.- (l) Each annuityserviceprovidershall appoint provider as providedunder who shall be responsiblefor monitoringcomplianceof dutiesof annuityservice Regulatory and these regulationsand any other rules' regulations,guidelinesissued by the InsuranCe have purchasedthe DevelopmentAuthority and fbr redressalof grievancesreportedby the subscriberswho The name and annuitiesfrorn the annuity serviceprovider upon exit tiom the National PensionSystem' of suchappointment' detailsof snchcomplianceofficer shallbe intimatedto the Authority within thirty days entitiesin (2) The complianceotficer shall be responsiblefor activitiesrelatedto the coordinationwith other agency, the National pension System like the National Pensionsystem Trust, the central recordkeeping to it' TrusteeBank or any otherspeciticentity connectedwith annuitypurchasesor any activity related of conduct 25. Codeof conduct.-Theempanelledannuityserviceprovidershall at all times observethe code and fbr insurersor any other similar rules, guidelinesor regulationsspecifiedby the InsuranceRegulatory DevelopmentAuthority for fair deaiingin activitiesrelatedto the annuitypurchaseby subscribers' and 26. power of the Authority to take up any of the matters associatedwith Insurance Regulatory grievancesarisingout of DevelopmentAuthority.-Inorder to removeany difficultiesin the annuityput'chase, l'lational annuity purchaseor any other matter associatedwith annuity purchaseby subscribersunder the pension System, the Authority may take up the matter directly with the Insurance Regulatory and Authority. Development with 2i, Confidentiality.-The empanelledannuity serviceprovider shall maintain absoluteconfidentiality including respectto all records,data and information receivedby it under the National PensionSystem prior permissionof informationreceivedfrom a subscriber.The annuityserviceprovidershall not, without the purpose,exceptas the Authority. produce or sharesuch data or informationas evidence,or for any other requiredby the due processof law. Authority may cancelthe empanelmentof an annuityserviceprovider, 2g. Cancellationof empanelment.-The opportunityof hearingandfor reasonsto be recordedin writing' after giving a reasonable CHAPTER V INSPECTION AND AUDIT and inspection of 29: Inspection and audit.-(l) The powers of the Authority with respect to audit PensionSystem entrustedwith the functionsof managingthe withdrawalsfrom the National intermediaries the National Pensior: shall be in accordancewith the regulationsgoverning the specific intermediariesunder System.

CHAPTER VI

rNQrrrBY.

.

:

':

\

30.

Conductof inquiry._(l) The inquiry proceedingsand acfion in case of default shall be in accordance with the regurationsgoverning rhe specific intermediariesrike the Nationar rensron $ystem Trust, the central recordkeepingagencyor any other intermediarv. (2) where the default ihvorves, the Nadonarpensionsystem Trust, the centralrecordkeepingagency and or any other interrnediary,a conunon inquiry may be held for the purpose. CHAPTERVII MISCELLANEOUS Preventionof fraud or mismanagement'-The NationarpensionsystemTrust or the centrarrecordkeeping agencyor the annuity serviceproi'ider or any other intermediaryor entity entrustedwith the functionsof managingthe withelrawursr';* the National Pensionsystem by the Authority shal take a, possibre stepsto prevent fiaud or mismanagement of the withdrawals of the subscribers upon exit from the Nationar pension System. 3I'

32'

Nominati'n'-Notwithstanding anything^contained in theseregurationsor in any other law for the time joining

l:ili"it9ll','';r1 #:;',T::1;* ti*:or

stan dtohiso'.herl clditinthe,"; ;;i#i::ril:,

becomes payabldor havingu""ot" pffi

pension tt" Nutionui systemis required romake a

-.,ffiff:'ffffiT[i";ffiffi'H]:iillgfrH

hasnor b";;;;;.-

The nomine.oinrir]n"es,

asrhecasemay excrusion l?"11'Jr:J,ii.ili3.li.'**:ti,#;;1.;;;.",' ."Ji, ," rhe orurio*,"r persons, a,sucir Providedthat.(i)

if the 'omilree predeceases the subscriber,. the norninationshail so far as conlenedupon the said nominee, it reratesto the right becomevoid and of no effect;

(ii)

where a provision has been duly made in the nomination,in accordance with theseregurations, conf'erringupon some other person the right ,o ,"""iu"'ull moneys, which unpaid' in the event of the nominee have so remained -such predeJeasing the subscriber,suchright shall, upon beingdeceased. passto suchothe, the nominee personsstandingasnominees;

(iii)

a sub'scribermay in his nomination distributethe amount tr that urct lrriry may stanq stand to his credit in the fund amongsthis nomineesat his own discretion;

(iv)

if a subr^criber hasa famity at the time-of making a nomination,the nominationshat one or rnorepersonsbelonging be in favour of to his.familY n"v **j""ion r'rcus madeuy by sucn such sut subscriberin favour of a personnot belongingto his famity shallbe inuuiiJ;---""'*!rv"

(v)

a fresh 'oniination-shallbe made by the subscriberon his marriage and any nominationmadebefore strchrnarriageshall be deemed to be invalid;

1vi)

if at the time of making a nomination,the

hasno famiry, the nominationmay of anypersonor persons .subscriber be in favour butif ther,1b:db"l;;ffi0ffi; acquires a famiry,suchnomination fbrthwith be deemedto be invalid shatl and the '-vuv' subscribe*t rsv'

or m()repersonsbelongingto

nis famity;

"

uii'*ut" , a fresh nominationin favour of one

';,*,.

n

38

THE GAZETTE OF INDIA: EXTRAORDINARY

[Panr III__S:c.4

(vii)

wherethe nominationis wholly or partly in favour of a minor, the subscribermay, for the purposes of this Scheme,appointa major personof his family, to be the guardianof the minor nomineein the eventof the subscriberpredeceasing the nomineeand the guardianso appointed;

(viii)

wherethereis no major personin the family, the subscribermay, at his discretion,appoint any,other personto be a guardianof the minor nominee:

(ix)

a nomination made under the National PensionSystemmay ar any time be modified by a subscriber aftergiving a written noticeof his intentionof doing so in the form specified.A nominationor its modificationso madeshall take effect to the extentthat it is valid on the dateon which it is receiveJ by the intermediaryunderthe NationalpensionSystem;

(x)

if a subscriberprovesthat his spousehasceased,underthe personallaw governinghim or hcr, or the customarylaw of the communityto which the spousesbelong,to be entitledto maintelancehe or sheshall no longeqbe deemedto be a part of the subscriber'sfamily for the purposeof this Scheme, unless the subscribersubsequentlyintimates by'express notice in writing to the designated intermediaryfor the purposethat he or she shall con[inueto be so regarded;and

(xi)

if a subscriberby notice in writing to the designatedintermediaryfor the purposeexpressesher desire to exclude her husbandfrom the family, the husbandand his dependentparentsshall no longer be deemedto be a part of the subscriber'sfamily for the purposeoi ttt. Scherne,unlessthe subscribersubsequently cancelsin writing any suchnotice.

Explana.tion I -- For the purposesof this chapter-,(a)

the expression"family",

(i) in relation to a male subscriber,means his legally wedded wife, his .hildr"n, whether magied or unmarried,his dependentparentsand his deceased soniswidow and children; (ii) in relation to a femalesubscriber,meansher legally weddedhusband,her children, whethermarriedor unmarried,her dependentparents,her husband'sdependentparents and her deceased son's widow and children; ExplanationII -- In eitherof the abovetwo cases,if the child of a subscriber as the casemay be, the child [or of a deceasedson of the subscriberlhas been adoptedby anotherperson and if, under the personal law of thr adopter,adoption is legally recognized,such a child shall be consideredas excluded from the family of the subscriber. 33' Submissionof withdrawal application.-Asubscriberseekingwithdrawal from Tier-I accounr of the National Pension System shall submit his withdrawal application along with the requirementsmentioned thereonto the centralrecordkeepingagencyas per the operationalwithdrawal and exit guidelines issuedby the Authorityfrom time to time. 34' Requirementof submissionof documents.-Asubscriberseekingwithdrawal from Tier-I accountof the NationalPensionSystemshall submit all the documentsas specifiedon the withdrawal applicationform. The withdrawal applicationforms applicableto various categoriesof the subscribers shall U" u, p", the forms providedby the Authority fi.om time ro time. 35' Providing bank account details,-A subscriberseekingwithdrawal fiorn Tier-I account the of National Pension System shall provide the Bank details mandatorily up* from Aadhar card or FAN card issued by Income-TaxDe.partment, whicheveris available in the sectionprovidedin the withdrawalform in o:3er to providecreditof the NationalPensionSystemclaim aqnountdirecily in to their Bank accounrs.

tw fil-w

qpd s1 {lsftt{ : &T{tTrIRst 39 " 36' Modc of paymcntsunder National PensionSystem.-All paymentspertainingto withdrawals under NationalPensirtnSystemshall be madethroughelectronicransf-eronly and the withdrawal amoulrtshaftUe directlycreditedto the subscfiberor ctaimant'sbank accountasfurnishedin the withdrawal fbrm. al

37' Stoppageof last three months deductionsby employer.-Contributionsdeductions under the National hr*n Syrsremmade by the employers from the ialary oi such subscribershall be stoptried at least rhree ffi pir to the date of superannuation,, as may be applicable,to ensurethat the exit and withdrawal of fu ilbscriber is smooth and effective. The employei shall setrle directly the said last three months mibmions at their end with the concernedemployee. 3t' Reporrsand disclosures.-Theannuity service provider, the National pension SystemTrust or the cenFal recordkeepingagency shall submit such information and reports as required Uy t-treAuthority in the Eode, flrrnner and frequencyas .specifledby the Authority from time to time. 39' Power-of tlre Authority to issuedirectionsand clarifications.-The Authority shall have power to issue necessarydircctions,restrictingthe provisionsrelating to withdrawals and exit, as the case;"y ;", ;l;; theseregulatiotts,so as to cofiiply with any requirementsto move from any other pensionor superannuation schemesnot coveredunder the Act, to the Natlonal PensionSystem. The Authoriiy may issueclarifications ahd guidelinesin otder to removeany difficultiesin the application or interpretationof theseregulations.

/203/49/ | 5l IADVT-IIV4/Exty. HEMANT G. COIITRACTOR,Chairperson

PrintedbytlreManager'Governmen1ofTndiaP'.'., and Publishedby the Controller.of publications.netfrl_i IOOS+.