Subscribers of the National Pension System (NPS) can get an option to withdraw the entire fund. The decision may be taken to provide relief to pensioners amidst difficulties being faced by the second wave of Corona.
According to an IANS report, the Pension Fund Regulatory and Development Authority (PFRDA) is considering a new option for pensioners. In this, NPS subscribers can be allowed to withdraw the entire amount at one time if the pension fund is up to Rs 5 lakh.
With this, subscribers will be able to invest their money in some way with better returns. However, PFRDA will additionally give an option to invest a part of the pension amount on behalf of annuity or pension fund managers.
Currently the average return on annuities is around 5.5 percent. The actual return for subscribers is often reduced with income tax on the amount of inflation and pension.
This change in the rule will allow NPS subscribers to get better returns on their funds.
Ease of opening NPS account for new subscribers
PFRDA recently allowed Points of Presence (POP) and Central Record Keeping Agencies (CRA) to open accounts of new subscribers through paperless digital processes. However, the application copy of NPS subscribers will be printed by CRA. NPS subscribers will not be required to submit the application form on paper with the CRA.
