New Delhi: Employees participating in New Pension System (NPS) will be having option to choose company for taking pension benefits. The government has linked six companies to NPS for the employees. Employees would be able to select companies after retirement as well.

Under NPS, Pension Fund Regulatory and Development Authority (PFRDA) has selected Life Insurance Corporation of India (LIC), SBI Life Insurance, ICICI Prudential Life Insurance, Bajaj Allianz Life Insurance and Star Union Dai-ichi Life Insurance for giving pension benefits to employees. These companies are selected only after the approval from Insurance Regulatory Development Authority (IRDA).

According to a statement from Finance Ministry, all those employees participating in NPS would be able to select company of choice while taking exit from the scheme. Under NPS, maximum 60 percent amount can be taken from the retirement corpus at the time of retirement. But for the rest 40 percent amount, employees would have to select a listed life insurance company scheme for future disbursements. Employees would also be having facility to make a choice among the different pension schemes available with the company of their choice.

With the liberty given to choose company, PFRDA has taken the initiative to make NPS a big success. Hindrances have always been there for NPS. NPS has always endured hue and cry from political parties and labour organisations. With extending power to make a choice, the government has tried to make pension system more transparent.


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