PFRDA Orders : Exit rules under National Pension System for All Citizen model under UoS including Corporates and Swavalamban scheme

Exit rules under National Pension System for All Citizen model under UoS including Corporates and Swavalamban scheme.

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

Cir no: PFRDA/ 2013/2/ PDEX / 2
SL-3

Subject: Exit rules under National Pension System for All Citizen model under UoS including Corporates and Swavalamban scheme.

PFRDA has issued necessary instructions to CRA for implementation of the withdrawal process under National Pension System (NPS) for all sectors viz., Government Employees, All Citizen model and Swavalamban scheme. The said information is being re-iterated hereunder for the information of all stakeholders for a better appreciation of the matter.

The following are the details for the withdrawals allowed in case of All Citizen model and Swavalamban scheme subscribers:

a) Upon reaching the age of 60 Years: At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and balance is paid as lump sum payment to the subscriber.

b) Upon Death: The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension.

c) Exit from NPS before the age of 60 Years (irrespective of cause): At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension  to the subscriber and the balance is paid as a lump sum payment to the subscriber.

The subscribers would be able to purchase the annuities directly from the empanelled Annuity Service Providers as per their choice of annuity that is available in the market/with the Annuity Service Provider’s (ASP’s) empanelled by PFRDA. For Swavalamban withdrawals under (a) & (c) above, there is an overriding condition on the lump sum payment payable due to which the entire accumulated pension wealth would be annuitized in case if the monthly pension obtained by using the 40%/80% of the pension wealth is below Rs. 1000/- per month.

Source: www.pfrda.org.in