NPS Rule Change : The Pension Fund Regulatory and Development Authority (PFRDA) may introduce a special new rule later this financial year. Under this National Pension Scheme (NPS) subscribers can systematically withdraw 60 percent of the amount.
NPS Rule Change : The Pension Fund Regulatory and Development Authority (PFRDA) may introduce a special new rule later this financial year. Under this National Pension Scheme (NPS) subscribers can systematically withdraw 60 percent of the amount. Earlier only one withdrawal was allowed. This change in PFRDA can benefit lakhs of people. After this decision, NPS will help to become public oriented.
The prospect of new rules for these people
Proposes that NPS members will be allowed to systematically withdraw 60 per cent of their corpus after retirement till the age of 75, while 40 per cent will have to be invested in annuity instead of the current system of lump sum withdrawal. PFRDA President Deepak Mohanty said, ‘We are planning to start a systematic withdrawal plan from the second half of this year. This amount can be withdrawn in lump sum or on monthly, quarterly, half yearly or yearly basis. This applies to people aged 60 to 75.
Targeting young consumers
In the current financial year, NPS expects to add 1.3 million new members from the non-government sector. The number was 1 million a year ago. Last year NPS added 12 million customers and this financial year, plans to add 13 million. He said APY has a customer base of 5.4 crores.
Mohanty said that even if the states opt for the old pension scheme in the coming years, the number of customers in the NPS from the corporate sector will increase. APY’s strategy is to focus on enrolling all family members who have completed 18 years of age. So that all the members can get the benefit of pension.
