Earlier NPS subscribers were permitted to withdraw up to twenty-five per cent of their contributions, only after ten years from the date of their joining the system
Subscribers will now be able to partially withdraw money from the National Pension Scheme (NPS), post three years of joining the scheme. The Pension Fund Regulatory Development Authority (PFRDA) has relaxed the norms for partial withdrawal under the NPS.
Earlier, it was possible for subscribers under NPS to withdraw accumulations—not exceeding twenty-five per cent of the contributions made them—after 10 years from the date of joining the system, and a maximum of three times during the entire tenure of subscription under NPS.
However, there has been no change in the number of times a depositor can withdraw. The limit of thrice for the entire duration of subscription has been retained.
The official statement says, “In accordance with the PFRDA (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations 2017, the subscriber ought to be subscribed to the
National Pension System, at least for a period of three years from the date of his or her joining to such system, to be eligible to make partial withdrawals, under specific circumstances as specified in such regulations.”
The partial withdrawal is linked with contributions made by the subscribers. The subscribers shall be permitted to withdraw accumulations up to twenty-five per cent of the contributions only made by them and standing to their credit in their individual pension account, as on the date of application for withdrawal.