NPS rules Pension Fund Regulatory and Development Authority (PFRDA) has recently issued a circular informing that the facility of Systematic Lump Sum (SLW) has been started for the members of the National Pension System (NPS). In such a situation, if you are an NPS customer then this news is very important for you. Read what facilities will be available now and what is the complete news.
New Delhi. If you invest in National Pension Scheme (NPS) then this is important news for you. Pension Fund Regulatory and Development Authority (PFRDA) recently issued a circular informing that the facility of Systematic Lump Sum Withdrawal (SLW) has been released for National Pension System (NPS) subscribers.
What facility will be available now?
NPS subscribers can now withdraw up to 60 per cent of their pension corpus through SLW periodically (monthly, quarterly, half-yearly or annually) as per their choice up to the age of 75 years at the time of their normal withdrawal. .
PFRDA said that
Allowing subscribers to withdraw up to 60 per cent of their pension corpus through SLW from time to time as per their choice at the time of their normal withdrawal, monthly, quarterly, half-yearly or annually for a period up to 75 years or age Is.
What was the old rule?
According to the old rule, one was allowed to avail annuity till the age of 75 years and withdraw a lump sum amount on any contribution. Lump sum withdrawal was allowed in a single installment or on an annual basis. When withdrawals are made annually, customers have to initiate a withdrawal request each time.
PFRDA said in its circular that
As per the existing withdrawal guidelines, customers after 60 years/retirement can defer availing the annuity till the age of 75 years and withdraw the lump sum amount on any combination. The lump sum amount can be withdrawn in a single installment or it can be withdrawn on an annual basis. If withdrawn annually, the Subscriber will have to initiate and authorize a withdrawal request every time
However, now with the SLW facility, NPS subscribers will be allowed to defer annuity purchases till the age of 75 and still make withdrawals from their pension fund from time to time.
