application for empanelment of asps8684132605.pdf

7/27/2019 Application for empanelment of ASPs8684132605.pdf

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PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

First Floor, ICADR Building, Phase II, Plot No 6,

Vasant Kunj Institutional Area, New Delhi-110070Tel:011-26897948/ 49 Fax- 26897938 Website: www.pfrda.org.in

EMPANELMENT OF ANNUITY SERVICE PROVIDERS (ASPs) For

NATIONAL PENSION SYSTEM (NPS)


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PFRDA invites applications from the IRDA registered Life Insurers for empanelment as Annuity Service

Providers (ASP) for providing / facilitating purchase of annuities to the subscribers of National Pension

System (NPS) at the time of their exit from National Pension System.

As per the NPS, a subscriber can exit from the system under the following scenarios:1. On attaining the Normal Retirement Age (NRA)/ 60 years: Subscriber is required to compulsorily

annuitize at least 40% of the pension wealth and the remaining 60% can be withdrawn as a lump sum

or in a phased manner.

2. Upon death due to any cause: Nominee to receive 100% of pension wealth in lump sum. However, if

the nominee wishes to continue with the NPS, he/she shall have to subscribe to NPS individually after

following due KYC procedure.

3. Withdrawal any time before 60 years of age: Subscriber is required to invest at least 80% of the

pension wealth to purchase a life annuity from any IRDA regulated life insurance company. Rest of

the pension wealth may be withdrawn as lump sum.

ELIGIBILITY CRITERIA

The following entities are eligible to apply.

1. IRDA licensed Life Insurance Companies dealing and selling annuity products in the Indian market for

at least last 3 years.

2. Having a minimum Net worth of 250 Crores.

3. There should not have been any change in shareholding of more than 20%, in the last 3 years.

4. The Life insurer should have competency in design, development and offering of Annuity products.

This will be demonstrated by the details of the annuity products filed with IRDA.

5. Not being barred from dealing with or selling annuity products in the market by IRDA.

However, Chairman, PFRDA reserves the right to waive or modify the above mentioned eligibility criteria

without assigning any reason or giving any due notice.

Scope of Work for ASP:

The ASPs will be required to provide various kinds of Annuity options to the subscribers which can be

purchased directly by them at the time of superannuation/annuitisation through National Pension System.

The types of annuities that are proposed to be provided are as per Annexure II.

It may be noted that the annuities will be bought by the NPS subscribers from the list of Annuity ServiceProviders (ASPs) approved by PFRDA and from amongst the annuity options made available. The Annuity

Service Provider (ASP) enlisted should ensure that the final product or options accepted are in conformity

with IRDA guidelines on file and use, all the relevant rules, regulations and acts of IRDA applicable for such a

product.

NPS system consisting of Central Record Keeping agency (NSDL at present) and Trustee Bank (Bank of India)

would be facilitating data transfer and corpus from the NPS to the annuity service provider (electronically)

directly as per the option exercised by the NPS subscriber.


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Interested and eligible Life Insurers may submit their applications as per the enclosed format (Annexure I)

along with the documentary proof(s) with respect to the details furnished in the application form.

PFRDA reserves the right to accept or reject any application without assigning any reason. Application form

for empanelment shall be submitted to PFRDA, super scribing the envelope as Application for

empanelment of Annuity Service Provider for National Pension System. The Bottom Left corner of the

outer cover should carry the full name, address, telephone nos., e-mail ID etc. of the Company submitting

the application.

The sealed envelope containing the application should be addressed to:

Pension Fund Regulatory and Development Authority,

1st

Floor, ICADR Building, Plot No 6,

Vasant Kunj Institutional Area, Phase-II, New Delhi 110 070

Based on their application and eligibility, the Annuity Service Providers will be empanelled by PFRDA.

However, Chairman, PFRDA reserves the right to accept/cancel the empanelment of Annuity Service

Provider without assigning any reason or giving any due notice.


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ANNEXURE I

INFORMATION TO BE FURNISHED BY THE APPLICANT

S.

No.

Particulars Details

1. Name of the Life Insurer

2. Principal place of business with full address

(attach separate sheets, if necessary)

3 Name of the Primary Contact Person

4 Telephone & Mobile No.

5 Fax No.

6 E-mail ID

7 Brief profile of executives &

Managerial team with experience

in the Annuity product field (attach

separate sheet, if necessary)

8 Details of experience in dealing with GovtDepartments /organisations / Statutory

/Autonomous bodies Banks / financial

institutions / PSUs etc for the purpose of

providing Immediate Annuity products

(attach separate sheet, if necessary)

9 Details of Immediate Annuity Business

underwritten for the last 5 years on financial

year basis

10 As the business emanating from NPS would

be direct, please confirm that no agency

commission would be charged for the sameto the subscribers.

11 Annuity Options that would be provided by

Annuity Service ProviderPlease refer to Annexure II

List of Documents to be attached along with this application

1. A certificate duly signed by a Chartered

Accountant who is not an employee of the

Company and clearly stating the Net Worth

(Paid up capital + Reserves + surplus) of the

Company for the last 5 financial years

2 A certificate from the CEO of the Company

clearly stating the date from which the

APPLICATION FOR EMPANELMENT OF ANNUITY SERVICE PROVIDERS (ASPs)

For NATIONAL PENSION SYSTEM (NPS)


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Company has started selling Annuity

products along with a statement providing

for the Name, unique identification number

of the annuity products the company has and

the date of approval of the respectiveproducts.

3 A certificate duly signed by a Chartered

Accountant who is not an employee of the

Company stating that there is no change in

shareholding of the Company of more than

20%, in the last 3 financial years

4 A certificate from the CEO of the Company

that the company is/was not barred from

dealing with or selling annuity products in the

market by IRDA.

5 A certificate duly signed by CEO/CFO/CIO ofthe Company clearly showing the annuity

providers fund size (AUM) in Crores for the

company, for the last 5 Financial Years

6 Companys registration certificate issued by

IRDA

7 A certificate duly signed by CEO/CFO/CIO of

the Company clearly showing the annuity

providers fund size (AUM) in Crores for the

company, for the last 5 Financial Years


the Company clearly showing the annuityproviders fund size (AUM) in Crores accruing

from Annuity Business only, for the last 5

Financial Years

9 A certificate duly signed by the Appointed

Actuary of the Company on the Solvency

margin ratios clearly showing the Solvency

margin reported to IRDA for the past 5

financial years

10 A certificate duly signed by an Independent

Chartered Accountant clearly showing the

annuity providers Profit before Tax (PBT) forthe last 5 financial Years

11 A certificate duly signed by CEO/CFO of the

Company clearly showing the Management

Expense Ratio for the past 5 financial years

12 A certificate duly signed by CEO/CFO of the

Company clearly showing the full details on

any regulatory strictures or penalties

imposed by IRDA/SEBI/RBI or any other

government body during the last 5 financial

years and till 31st Oct, 2011. If no

penalties/regulatory strictures were imposed


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by any of the above authorities a certificate

clearly specifying the same needs to be

submitted.

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A certificate duly signed by CEO of the

Company on the Grievance settlement Ratio(No. of grievances settled / Total grievances

reported Plus outstanding at the beginning of

the financial year) and clearly providing the

information for the last 5 financial years


the Company clearly stating the date from

which the Company is selling Group Annuity

products in India.


the Company clearly stating the individual

annuity products filed with IRDA along withtheir UIN, date of approval and date of

withdrawn(if withdrawn from the market)

Signature of the Authorized Person with official seal

NameDesignation

Contact details

Date:

Place:

Important Notes:

Please also send soft copy of the application only (without attachments) at

[email protected]

Please attach list of documents as per requirement above.
mailto:[email protected]:[email protected]


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ANNEXURE II

OptionAnnuity Type to be provided by Annuity Service

Provider

Will be provided/ will not be

provided. If the option cannot

be provided, please state the

reasons thereof. You may use

an additional sheet, if required

for the purpose.

OPTION I Pension (Annuity) payable for life at a uniform rate.

OPTION II Pension (Annuity) for life with return of purchase price on

death of the annuitant to the nominees/legal heirs.

OPTION III The monthly pension (annuity) should be paid to the

subscriber for life and upon death of subscriber the

monthly annuity shall be paid to the family members inorder and for period as detailed in Annexure III.

OPTION IV Pension (Annuity) for life with a provision of 100% of the

annuity payable to spouse during his/her lifetime on death

of the annuitant.

OPTION V Pension (Annuity) for life with a provision of 100% of the


of the annuitant with return of purchase price on upon

death of annuitant to the nominees/legal heirs.

OPTION VI Pension (Annuity) for life with a provision of 50% of the


of the annuitant.

OPTION VII Pension (Annuity) for life with a provision of 50% of the


of the annuitant with return of purchase price on upon

death of annuitant to the nominees/legal heirs.

OPTION VIII Pension (Annuity) payable for 5, 10, 15 or 20 years certain

and thereafter as long as the annuitant lives.

OPTION IX Any other annuity types that PFRDA or Government of

India may ask the Annuity Service Provider to design forNPS subscribers at a later date.

OPTION X Any other annuity types designed or proposed by the Life

insurer for this purpose.

Signature of the Authorized Person with official seal

Name

Designation

Contact details

Date: Place:


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ANNEXURE - III

Pensionary benefits to Government employees under the National Pension System

(1) Pension for the life time of the Government employee exiting from NPS

(1) The period for which family pension is payable shall be as follows -

(i) subject to clause (1) above, in the case of a widow or widower up to the date of death or re-marriage, whichever is earlier.(ii) subject to (1) and 2 (i) above, in the case of an unmarried son, until he attains the age of twenty-five years or until he gets married, whichever is earlier(iii) subject to (1) and 2 (i & ii) above in the case of an unmarried or widowed or divorced daughter,upto the date of death or until she gets married or remarried, whichever is earlier;(iv) subject to (1) and 2 (I, ii and III) above, in the case of parents who were wholly dependent on the

Government servant immediately before the death of the Government servant, for life(v) dependent disabled siblings

Provided that the family pension shall continue to be payable to a childless widow on remarriage, if her

income from all other sources is less than the amount of Rs 3500 plus Dearness Relief thereon.

Provided further that if the son or daughter of a Government servant is suffering from any disorder or

disability of mind including mentally retarded or is physically crippled or disabled so as to render him of her

unable to earn a living even after attaining the age of twenty-five years, the family pension shall be payable

to such son or daughter for life subject to the following conditions, namely -

(i ) if such son or daughter is one among two or more children of the Government servant the

monthly payment from annuity shall be initially payable to the minor children (mentioned in clause (ii)

or clause (iii) of this sub rule) in the order set out in Clause (iii) of sub-rule ( 7) of this rule until the last

minor child attains the age of twenty-five and thereafter the monthly payment through annuity shallbe resumed in favour of the son or daughter suffering from disorder or disability at mind including

mentally retarded or who is physically crippled or disabled and shall be payable to him/her for life;

( i i) if there are more than one such children suffering from disorder or disability of mind including

mentally retarded or who are physically crippled or disabled, the family pension shall be paid in the

order of their birth and the younger of them will get the family pension only after the elder next above

him/her ceases to be eligible;

Provided that where the family pension is payable to such twin children it shall be paid in the manner set

out in Clause (d) of sub-rule (6) of this rule;

(iii) the family pension shall be paid to such son or daughter through the guardian as if he or she

were a minor except in the case of the physically crippled son/daughter who has attained the age of

majority;

(iv) before allowing the family pension for life to any such son or daughter, the appointing authority

shall satisfy that the handicap is of such a nature so as to prevent him or her from earning his or her

livelihood and the same shall be evidenced by a certificate obtained from a Medical Board comprising

of a Medical Superintendent or a Principal or a Director or Head of the institution or his nominee as

Chairman and two other members, out ofwhich at least one shall be a Specialist in the particular areaof mental or physical disability including mental retardation settingout, as far as possible, the exactmental or physical condition of the child;


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(v) the person receiving the family pension as guardian of such son or daughter or such son or daughter

not receiving the monthly payment through annuity through a guardian shall produce a certificate,

from a Medical Board comprising of a Medical Superintendant or a Principal or a Director or Head of

the Institution or his nominee as Chairman and two other members, out of which at least one shall be

Specialist in the particular area of mental or physical disability including mental retardation, once, ifthe disability is permanent and if the disability is temporary, once in every five years to the effect that

he or she continues to suffer from disorder or disability of mind or continues to be physically crippled

or disabled.

(vi) In the case of mentally retarded son or daughter, the family pension shall be payable to a person

nominated by the Government servant and in case no such nomination has been furnished to the Head

of office by such Government servant during his lifetime, to the person nominated by the spouse of

Government servant, later on. In case no such nomination has been made by the Government servant

or by the spouse of Government servant the guardianship certificate obtained under Section 14 of the

National Trust Act, 1999 (No. 44 of 1999), from a local level committee, shall be accepted for

nomination/appointment of guardian for grant of monthly payment through annuity in respect ofbeneficiary suffering from Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities.

Provided further that the family pension to an unmarried or widowed or divorced daughter shall be subject

to following conditions, namely:-

(i) the family pension shall be initially payable to the minor children (mentioned in clause (ii) or

clause (iii) of this sub-rule) in the order set out in Clause (iii) of sub-rule (7) of this rule until the

last minor child attains the age of twenty-five; and

(ii) There is no disabled child eligible to receive family pension in accordance with the secondproviso of this sub-rule.

EXPLANATIONS -

(a) An unmarried son or an unmarried or widowed or divorced daughter shall become ineligible for

the family pension under this sub-rule from the date he or she married or re-married.

(b) The family pension to a son or a daughter shall be stopped if he or she starts earning his/her

livelihood In such cases it shall be the duty of the guardian or son or daughter to furnish a

certificate to the disbursing authority of monthly payment, once in a year that (i) he or she has not

started earning his/her livelihood and that (ii) he or she has not yet married.

(c) For the purpose of this sub-rule. a son or a daughter shall be deemed to be earning his/her

livelihood if his/her income from other sources is equal to or more than Rs. 3500 plus Dearness

Relief thereon Parent shall be deemed to be dependent on the Government servant if their

combined income is less than the Rs 3500 plus Dearness Relief thereon.

(d) the family pension payable to a childless widow shall be stopped if, after re-marriage, her income

from all other sources becomes equal to or exceeds the amount Rs.3500 plus Dearness Relief

thereon.


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(e) a disabled sibling shall become ineligible for the family pension under this sub-rule from the date

he or she gets married or he or she starts earning his/her livelihood and income from all other

sources becomes equal to or exceeds the amount Rs.3500 plus Dearness Relief thereon.

(6) (a) (i) Where the family pension is payable to more widows than one the family pension shall be paidto the widows in equal shares.

(i i) On the death of a widow, her share of the family pension shall become payable to her eligible

child

Provided that if the widow is not survived by any child, her share of the family pension shall not lapse but

shall be payable to the other widows in equal shares, or if there is only one such other widow, in full, to her.

(b) Where the deceased Government servant is survived by a widow but has left behind eligible child or

children from another wife who is not alive, the eligible child or children shall be entitled to the

share of family pension which the mother would have received if she had been alive at the time of

the death of the Government servant.

Provided that on the share or shares of family pension payable to such a child or children or to a widow or

widows ceasing to be payable, such share or shares shall not lapse, but shall be payable to the other widow

or widows and/or to other child or children otherwise eligible, in equal shares, or if there is only one widow

or child, in full, to such widow or child.

(c) Where the deceased Government servant is survived by a widow but has left behind eligible child or

children from a divorced wife or wives the eligible child or children shall be entitled to the share of

family pension which the mother would have received at the time of the death of the Government

servant had she not been so divorced.

Provided that on the share or shares of family pension payable to such a child or children or to a widow or

widows ceasing to be payable, such share or shares, shall not lapse, but shall be payable to the other widow

or widows and/or to the other child or children otherwise eligible, in equal shares, or if there is only one

widow or child, in full, to such widow or child.

(d) where the family pension is payable to twin children it shall be paid to such children in equalshares.

Provided that when one such child ceases to be eligible his/her share shall revert to the other child and

when both of them cease to be eligible the family pension shall be payable to the next eligible single

child/twin children.

(7) (i) Except as provided in sub-rule ( 6), the family pension shall not be payable to more than onemember of the family at the same time.

(i i) If a deceased Government servant leaves behind a widow or widower, the family pension shall

become payable to the widow or widower, failing which to the eligible child.

(i i i) Family pension to the children shall be payable in the order of their birth and the younger of them

will not be eligible for monthly payment through annuity unless the elder next above him/her has

become ineligible for the grant of family pension.

Provided that where the family pension is payable to twin children it shall be paid in the manner set out in

clause (d) of sub-rule (6) of this rule

(8) Where a deceased Government servant leaves behind more children than one, the eldest eligible child

shall be entitled to the family pension for the period mentioned in clause (ii) or clause (iii) of sub-rule


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(5), as the case may be, and after the expiry of that period the next child shall become eligible for the

grant of family pension.

(9) Where family pension is granted under this rule to a minor, it shall be payable to the guardian on behalf

of the minor

(10)(a) Family pension to the parents shall be payable if the parents were wholly dependent on the

Government servant immediately before his/her death and the deceased Government servant is not

survived by a widow or an eligible child.

(b) The family pension, wherever admissible to parents, will be payable to the mother of the

deceased Government servant failing which to the father of the deceased Government servant.

(11)In case both wife and husband are Government servants and are governed by the provisions of this rule

and one of them dies while in service or after retirement, the family pension in respect of the deceased

shall become payable to the surviving husband or wife and in the event of the death of the husband orwife, the surviving child or children shall be granted the two family pensions in respect of the deceased

parents.

(12)Where a female Government servant or male Government servant dies leaving behind a judicially

separated husband or widow and no child or children, the family pension in respect of the deceased

shall be payable to the person surviving:

Provided that where in a case the judicial separation is granted on the ground of adultery and the death of

the Government servant takes place during the period of such judicial separation, the family pension shall

not be payable to the person surviving if such person surviving was held guilty of committing adultery.

(13) (a) Where a female Government servant or male Government servant dies leaving behind a judiciallyseparated husband or widow with a child or children, the family pension payable in respect of

deceased shall be payable to the surviving person provided he or she is the guardian of such child or

children.

(b) Where the surviving person has ceased to be the guardian of such child or children, such family

pension shall be payable to the person who is the actual guardian of such child or children.

(14) (a) If a person, who in the event of death of a Government servant while in service, is eligible to receive

the family pension under this rule, is charged with the offence of murdering the Government servant

or for abetting in the commission of such an offence, the claim of such a person, including other

eligible member or members of the family to receive the family pension, shall remain suspended till

the conclusion of the criminal proceedings instituted against him.

(b) If on the conclusion of the criminal proceedings referred to in

clause (a), the person concerned -

(i ) is convicted for the murder or abetting in the murder of the Government servant, such a person

shall be debarred from receiving the family pension which shall be payable to other eligible member

of the family, from the date of death of the Government servant,:

( i i) is acquitted of the charge of murder or abetting in the murder of the Government servant, the

family pension shall he payable to such a person from the date of death of the Government servant.


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(15) (a) (i) As soon as a Government servant enters Government service, he shall give details of his family

to the Head of Office;

(ii) If the Government servant has no family he shall furnish the details as soon as he acquires a

family

(b) The Government servant shall communicate to the Head of Office any subsequent change in the

size of his family, including the fact of marriage of his child.

(c) As and when the disability referred to in proviso to sub-rule (5) of manifests itself in a child or a

sibling which makes him/her unable to earn his/her living, the fact should be brought to the

notice of the Head of Office duly supported by a Medical Certificate from a Medical Officer, not

below the rank of a Civil Surgeon. As and when the claim for monthly payment through annuity

arises, the legal guardian of the child or sibling should make an application supported by a fresh

medical certificate from a Medical Officer, not below the rank of Civil Surgeon that the child still

suffers from the disability.

(d) (i)The Head of Office shall, on receipt of the said communication, get it pasted on the servicebook of the Government servant concerned and acknowledge receipt and all further

communications received from the Government servant in this behalf.

(e) (ii)The Head of Office on receipt of communication from the Government servant regarding any

change in the size of family shall have such a change incorporated in service book.

(16) No family pension under this rule shall be granted to a military pensioner, who on retirement

from military service, on retiring pension, service pension or invalid pension is governed for the

grant of ordinary family pension by Army Instruction 2/S/64 or corresponding Navy or Air Force

Instructions and is re-employed in a civil service or civil post before attaining the age of

superannuation, and dies while holding a civil post .

(17) No family pension under this rule shall be granted to a person who is already in receipt of

Family Pension/monthly payment from annuity or is eligible therefore under any other rules of

the Central Government or a State Government and/or Public Sector Undertaking/Autonomous

Body/Local Fund under the Central or a State Government:

Provided that a person who is otherwise eligible for the family pension under this rule may opt to

receive family pension under this rule it he forgoes family pension admissible from any other source.

Provided further that family pension admissible under the Employees Pension Scheme, 1995, and the

Family Pension Scheme, 1971 and other statutory contributory pension/family pension schemes shall,

however, be allowed in addition to the family pension admissible under these rules.

(18) For the purposes of this rule, -

(a) "continuous service" means service rendered in a temporary or permanent capacity on posts in

connection with the affairs of the Union as member of New Pension Scheme and does not

include -

(i) period of suspension, if any; and

(ii) period of service, if any, rendered before attaining the age of eighteen years;

(b) "family" in relation to a Government servant means -

(i) wife in the case of a male Government servant, or husband in the case of a female


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Government servant.

(ii) a judicially separated wife or husband, such separation not being granted on the ground of

adultery and the person surviving was not held guilty of committing adultery.

(iii) Unmarried son who has not attained the age of twenty-five years and

unmarried/widowed/ divorced daughter, including such son and daughter adopted

legally.

(iii)Dependent parents

(iv)Dependent disabled siblings