NPS Rule Change- Earlier, subscribers had the option to withdraw the amount in lump sum or once annually. Now members can choose the lump sum withdrawal period as per their convenience.
There is good news for those who have invested money in the government’s popular pension scheme, National Pension Scheme (NPS). NPS regulator PFRDA can provide 100 percent fund withdrawal facility to subscribers under Systematic Lump Sum Withdrawal (SLW).
As of now the fund withdrawal limit is 60 percent. Currently, under SLW, members can withdraw 60 per cent of the maturity amount on retirement or after attaining the age of 60 years on monthly/quarterly/half yearly or yearly basis. Dr. Deepak Mohanty, Chairman of the Pension Fund Regulator (PFRDA), gave information about the preparation of major changes in the rules of the National Pension Scheme (NPS) in the recently organized NPS Chintan Shivir. If this happens then subscribers will get more convenience to withdraw money and use it as per their need.
What is SLW facility?
In SLW facility, NPS subscribers are exempted from purchasing annuity/pension plan till the age of 75 years. This means that they can keep the entire money in the NPS account only. They can withdraw the money kept in the account at regular intervals. But, they can withdraw only 60 percent of the funds.
If the new proposal of PFRDA is implemented then members will be allowed to withdraw 100 percent amount from SLW. PFRDA believes that with 100% fund withdrawal facility, subscribers will keep their money in the NPS fund for a long time. This will give them good returns and more funds will also be deposited with NPS.
SLW facility, NPS customers will have to apply once through online or offline mode. The date of start and end of this facility will also have to be mentioned. Along with this, it will also have to be told at what interval they will withdraw the amount. The remaining amount after each payment will remain invested in NPS. Returns will continue to be received on this remaining amount.
