NPS: There is good news for those who have invested in National Pension Scheme (NPS). Now withdrawing money from NPS will be even easier.
There is good news for those who have invested in National Pension Scheme (NPS). Now withdrawing money from NPS will be even easier. The Pension Fund Regulatory and Development Authority (PFRDA) is now offering a formal withdrawal facility (withdrawal) to subscribers. It will do away with the requirement of taking 60 per cent of the total deposit in one go. Once the new rules come into effect, subscribers will be able to withdraw their money periodically on a monthly, quarterly, half-yearly or annual basis up to the age of 75.
As per the current rules, when an NPS subscriber attains the age of 60, he can withdraw up to 60 percent of the total pension amount. The remaining 40 percent goes to purchase an annuity (annuity) on corpus basis. Pension is drawn from this annuity. Subscriber can keep his entire amount in NPS account till 75 years of age. He also gets the facility of gradual withdrawal of 60 percent of his capital on an annual basis. It has to be applied every year.
You get even more options to withdraw money
PFRDA Chairman Deepak Mohanty said, ‘The Pension Fund Regulatory Authority will not allow NPS subscribers to withdraw 60 per cent of the total corpus. Instead subscribers will be allowed up to 75 years of age. The facility of withdrawing money on a monthly, quarterly, half-yearly or yearly basis is to be provided.’ According to media reports.
The Systematic Lumpsum Withdrawal (SLW) option will greatly benefit the subscriber. In this way, from time to time, after withdrawing the partial amount, the subscriber gets a return of the deposited amount.
This facility is available for Tier-I and Tier-II accounts
Mohanty says NPS subscribers can opt for the systematic lumpsum withdrawal option for the next 15 years after retirement. On choosing the formal option, the NPS subscriber will receive monthly, quarterly or half-yearly payments till the age of 75 years. This facility is available for Tier-I and Tier-II accounts. Tier II account holders can also start lump sum withdrawal option before completion of 60 years.
Additional information
In recent times, central government employees and many state government employees have been demanding that the government should re-implement the old pension scheme. Many protests and fasts were also carried out to emphasize this. In this regard, many negotiations have been held between the officials and the employee unions.
In the last one year, many state governments have re-implemented the old pension scheme . Apart from this, in many states, employees have started agitation demanding implementation of old pension. The Ashok Gehlot government of Rajasthan was the first to revive the Old Pension Scheme (OPS). In this situation, the Rajasthan State Road Transport Corporation (RSRTC) has issued an order to implement Old Pension (OPS) for the employees.
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