The Buyt Desk
From January 1,2023 the PFRDA (Pension Fund Regulatory and Development Authority) has declared that all central government employees will have to submit their withdrawal requests in the form of applications for partial withdrawal through their related nodal offices. Employees in central/state autonomous bodies and the central/state government would need to follow this rule. Hence, from now subscribers have to necessarily provide the mandatory documents to nodal officers to verify the reasons for partial withdrawal.
Prior to this rule, the Pension Fund Regulatory and Development Authority(PFRDA) facilitated subscribers to make their partial withdrawals under NPS with self-declaration.This withdrawal rule was announced on January 14, 2021, during the COVID-19 pandemic.
The PFRDA stated that with the reduction of the COVID-19 they want to move back to the older system of partial withdrawal request via respective nodal offices.
PFRDA in a circular of January 14, 2021, declared that NPS partial withdrawals via self-declaration has been stopped. Now the subscriber have to submit their request to POPs or the nodal office. .
Who is Eligible for Premature Withdrawal from NPS?
The NPS (national pension system) is a government-controlled secure investment scheme. It facilitates subscribers to withdraw their amount before maturity or prematurely just after completing their three years. However, they can’t withdraw more than 25% of their total contributions.
The withdrawal is permitted just for certain reasons. For example, children higher education, children’s marriage, critical illness treatment, and purchase or construction of a residential house only in some specified circumstances.
The subscribers are allowed to withdraw partially thrice during the whole subscription tenure under NPS. Based on the investment amount, the subscribers after 60+ age get a specific amount (40-60% of the whole amount) in a single go. The subscriber can withdraw the remaining amount as a pension. INR 500 is the initial minimum deposit. After that, they can invest up to INR 500 or above INR 49,000 in succeeding months.
