There is very good news for the subscribers of the government’s popular pension scheme NPS i.e. National Pension Scheme.
The government has made some changes in the withdrawal rules of this scheme (NPS Withdrawal Rules), which will make it more convenient for them to withdraw their money and use it as per their need. Now you will be able to do Systematic Lump Sum Withdrawal (SLW- Systematic Lump Sum Withdrawal). Let us know what rules have changed, and how you will benefit.
What are the current rules?
PFRDA (Pension Fund Regulatory and Development Authority) had recently issued a circular, in which it has been said that as per the existing rules of withdrawal, subscribers can take their money in the form of annuity till the age of 60 years or 75 years after superannuation. Or you can take out Lamsam.
They will have to withdraw the lump sum amount in lump sum or can withdraw it on an annual basis. If withdrawing on annual basis, they will have to submit a withdrawal request every time. As per the amendments in Regulation 3 and Regulation 4 of the PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015, it is now proposed to provide systematic withdrawal facility to the subscriber in a phased manner.
Now subscribers can choose to withdraw 60 per cent of their pension corpus monthly, quarterly, half-yearly or annually till the age of 75 years. That is, where earlier they had the option of withdrawing a lump sum amount at one time or once annually, now they will be able to choose the lump sum withdrawal period as per their convenience.