NPS provides option to subscriber to defer withdrawal of lump sum of 60% up to the age of 70 years or withdraw the entire amount at once by giving 15 days advance notice during such a period of deferment.
PFRDA has issued clarification on deferred withdrawal of lump sum in New Pension Scheme.
PENSION FUND REGULATORY
AND DEVELOPMENT AUTHORITY
1st Floor, ICADR Building, Plot No. 6
Vasant Kunj Institutional Area,
Phase – II, New Delhi – 110070
October 29, 2015
NPS Trust, All POP’s, Aggregators, CRA,Central, State Governments and All Subscribers
Sub: Clarification of Deferred withdrawal of lump sum
PFRDA (Exits and Withdrawals from Nation Pension System) Regulations 2015 provides option to subscriber to defer withdrawal of lump sum (60%) up to the age of 70 years.
Under the Deferred withdrawal facility, the subscribers at the time Of exit from National Pension System (NPS) can exercise an option to defer the withdrawal of eligible lump sum withdrawal and stay invested in the NPS. Subscriber has an option to withdraw the deferred lump sum amount in maximum ten annual installments up to the age of 70 years or withdraw the entire amount at once by giving 15 days advance notice during such a period of deferment.
If no such notice is given, the accumulated pension wealth would be automatically monetized and credited to his bank account upon attaining the age of 70 years.
This is for the information of all concerned. The circular also is being placed on PFRDA website at http://www.pfrda.org.in, NPS Trust website www.npstrust.org.in and CRA website at http://www.npscra.nsdl.co.in.
Chief General Manager