8 | P a g e
5. Pension (Annuity) for life with a provision of 50% of the annuity payable to spouse
during his/her lifetime on death of the annuitant.
6. Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse
during his/her lifetime on death of the annuitant.
7. Pension (Annuity) for life with a provision of 100% of the annuity payable to spouse
during his/her lifetime on death of the annuitant and with return of purchase price on
death of the spouse. If the spouse predeceases the annuitant, payment of annuity will
cease after the death of the annuitant and purchase price is paid to the nominee
What are the factors that determine the annuity income when you buy an annuity?
The Size of your pension wealth/corpus determines your monthly annuity/pension that you
receive. Bigger the accumulated pension wealth or corpus used for purchase of annuity, the
bigger would be the monthly pension that is received. Besides that, amount of annuity may vary
according to the type of annuity variant selected by the subscriber.
What is the default annuity scheme and default ASP under NPS?
The following default annuity service provider along with the annuity scheme is available to all
the subscribers under National Pensions System.
1. Default Annuity Service Provider – Life Insurance Corporation of India (LIC)
2. Default Annuity Scheme - Annuity for life with a provision of 100% of the annuity payable to
spouse during his/her life on death of annuitant’ and under this option, payment of monthly
annuity would cease once the annuitant and the spouse die or after death of the annuitant if the
spouse pre-deceases the annuitant, without any return of purchase price.
However, it may be noted that default option is being purely provided in the subscribers’
interest and to avoid any delay in claim processing and is not with a view to endorse/promote
any particular ASP or annuity variant being offered by the ASP. If the amount available in NPS
account of subscriber is not adequate to buy the default annuity variant and from the default
ASP, the subscriber has to compulsorily choose an ASP who offers an annuity at the available
corpus in the account of the subscriber.
Can I use more than 40% of my accumulated pension wealth to purchase the annuity at the
time of exit from NPS upon attaining the age of 60 years?
Yes, a subscriber at the time of attaining the age of 60 years can purchase annuity up to 100% of
his accumulated pension wealth.
Can a NPS subscriber defer his annuity purchase under NPS at the time of exit on 60 years?
Yes, one can defer the mandatory purchase of annuity for a maximum period of 3 years, at the
time of exit from NPS.
To whom the claim for withdrawal of benefits needs to be submitted?
The All citizen model sector including corporate and NPS Lite-Swavalamban subscribers
have the option of submitting their request to the nearest PFRDA registered POP/POP-
SP/AGGREGATOR.
The subscriber needs to submit specified application form along with the full set of
documentation as prescribed.