Pension news update: National Pension System is a kind of investment plan. Under this scheme, the account holders get the benefit of lump sum amount and pension every month after retirement.
NPS Withdrawal Facility: There is big news for pensioners. If you are also taking advantage of NPS, then now it has been decided by the government to change its rules. National Pension System is a kind of investment plan. Under this scheme, the account holders get the benefit of lump sum amount and pension every month after retirement.
PFRDA gave information
Let us tell you that there is no provision for withdrawal before retirement in NPS, but you can withdraw money under certain rules. Information about this has been given by PFRDA. PFRDA has changed some new rules regarding partial withdrawal from NPS this year.
Nodal officer will have to apply
For partial withdrawal after January 1, 2023, you will have to apply to the concerned nodal officer. Apart from this, you can apply online also. Only NPS account holders, Central, State and Central Autonomous Bodies are getting the benefit of this facility.
What did the chairman of PFRDA say?
Giving information, PFRDA Chairman Deepak Mohanty has told that many people have requested why we cannot continue with the fund. Why should I take annuity when my money is giving me good returns? I would like to withdraw my money on monthly or quarterly basis. Right now we cannot provide such an option. In such a situation, we are considering such a product.
At present, National Pension Scheme (NPS) members withdraw up to 60 per cent of the retirement corpus as a lump sum after the age of 60, while the remaining 40 per cent of the corpus is compulsorily ‘annuity’ (fixed amount paid every year) goes in. Whereas a systematic withdrawal plan will allow NPS members to opt for periodic withdrawals till the age of 75 years. Subscribers can opt for monthly, quarterly, half-yearly and yearly withdrawals.
Withdrawal process will be completed in just 2 days
According to the circular issued by PFRDA, the time limit for withdrawal from NPS has been reduced from T4 to T2. That is, now instead of 4 days, the process of withdrawal will be completed in just 2 days.
What is the specialty of this scheme-
- If you go to withdraw money from NPS account, then you can withdraw only three times.
- Let us tell you that you can withdraw only 25 percent of the total contribution.
- Partial withdrawal can be made from National Pension System for higher education of children, marriage of children, purchase and construction of flat, serious illness.
