NPS Account Withdrawal Rules: Pension fund regulator PFRDA has prepared to implement a systematic withdrawal plan for withdrawal of funds from NPS account. Through this plan, pension account holders will get the option of getting the amount in a monthly or half-yearly systematic manner.
Add rightsofemployees.com as a Preferred Source
Pension Fund Regulator (PFRDA) is bringing the facility of systematic withdrawal with the aim of providing relief to the members of the National Pension Scheme. Through this, instead of lump sum, you will be able to withdraw the amount in the NPS account on a monthly or quarterly, half-yearly or yearly basis. The pension fund regulator has said that it is going to implement this system by September.
Pension fund regulator PFRDA has prepared to implement a systematic withdrawal plan for withdrawal of funds from NPS account. Through this plan, on completion of 60 years, pension account holders will be given the option of withdrawing a lump sum amount as per their choice, as well as the option of receiving the amount in a monthly or half-yearly systematic manner.
PFRDA chairman Deepak Mohanty said the systematic evacuation plan is almost in its final stages. It is expected that by the end of the next quarter i.e. September, we will be able to bring such a plan. He said that this facility will be available for both Tier-I and Tier-II account holders.
Current rule of withdrawal from NPS account
According to the current rule, when the NPS account holder turns 60, he can withdraw only 60 percent of the total amount in the retirement fund as a lump sum. The remaining 40% of the amount in the fund is compulsorily used to buy annuity.
Application has to be made for periodic withdrawal
NPS account holders also have the option of deferring lump sum withdrawal till the age of 75 years. By doing so he can make phased withdrawals annually through periodic withdrawal option instead of lump sum withdrawal. Under this, the NPS subscriber can make partial withdrawals on an annual basis, but to do so, he has to apply every year.
Add rightsofemployees.com as a Preferred Source
