Three major changes in the National Pension Scheme (NPS) including withdrawal norms
The Government of India has recently made three changes in the National
Pension Scheme (NPS) including withdrawal norms. The details are as
under:
Partial withdrawal during the service: The Pension Fund Regulatory and
Development Authority (PFRDA), with an objective to meet the
subscriber’s sudden financial requirement enrolled under NPS, has
liberalized norms for partial withdrawals which also include reduction
of requirement of minimum years of being enrolled under NPS from 10
years to 3 years from the date of joining. Suitable amendments were made
through “Pension Fund Regulatory and Development Authority (Exits and
Withdrawals under the National Pension System) (First Amendment)
Regulations, 2017 and the same has been notified on 10.08.2017.
Increase in the joining age under NPS: With an objective to allow
individuals (under NPS-All Citizen Model and Corporate Sector Model) who
are in the age bracket between 60 years and 65 years to join NPS
system. Suitable amendments were made through “Pension Fund Regulatory
and Development Authority (Exits and Withdrawals under the National
Pension System) (Second Amendment) Regulations, 2017 and the same has
been notified on 06.10.2017.
Exit in case of disability and incapacitation of the subscriber: With an
objective of facilitating easy exit & withdrawal in case of
disability and incapacitation of the subscriber covered under NPS, PFRDA
has made suitable amendments through “Pension Fund Regulatory and
Development Authority (Exits and Withdrawals under the National Pension
System) (Third Amendment) Regulations, 2018 and the same has been
notified on 02.02.2018.
This was stated by Shri Ship Pratap Shukla, Minister of State for Finance in a written reply to a question in Lok Sabha today.
Source: PIB