The Pension Fund Regulatory and Development Authority (PFRDA) has updated its rules regarding the surrender of annuity policies under the National Pension System (NPS). The new rules offer relief to subscribers facing critical illnesses and certain policyholders with old annuity contracts and an explicit surrender clause.
According to the circular issued on May 14, 2026, PFRDA says annuity service providers (ASPs) will now be allowed to process surrender requests in specific cases, including critical illness of an annuitant or their family members, and in cases where annuities with an explicit surrender clause were issued before a PFRDA circular on October 24, 2024.
