*PFRDA (Exit & Withdrawals under NPS) Amendment Regulations, 2025*
To simplify, liberalise and rationalise , exit and withdrawal rules under NPS and To bring clarity and uniformity across Government, Non-Government, Corporate, All Citizen and NPS-Lite subscribers and to give subscribers more flexibility these amendments are made.
*Important modifications done in the following heads *
* Timing of exit
* Mode of withdrawal
* Deferral of annuity / lump sum
* To align rules with Indian Evidence Act, 2023 (missing & presumed dead cases.
Applicable To :
1. **Government Sector subscribers**
2. **Non-Government Sector subscribers**
3. **Corporate Sector subscribers**
4. **All Citizen Model subscribers**
5. **NPS-Lite / Swavalamban subscribers**
6. **Special Purpose NPS Schemes**, as notified by PFRDA
👉 Rules are now linked to **Individual Pension Accounts**, not merely “retirement accounts”.
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As per the Revised Definitions
Exit means:
* Closure of an individual pension account on:
* Retirement / superannuation
* Attaining 60 years or later
* Completion of minimum subscription period
* Premature exit
* Death or missing & presumed dead
👉 If a subscriber has **multiple NPS accounts**, each account is treated **separately**.
* Subscriber can **postpone the
* Lump sum withdrawal, or
* Purchase of annuity
* Deferment allowed **up to 85 years of age**.
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Government Servant under NPS
A. On Retirement
* Subscriber may remain in NPS till **85 years** if exit option is not exercised.
* **Minimum 40% of corpus** to be used for **annuity**.
* Balance amount payable as:
* One-time lump sum, OR
* Structured/periodic withdrawal, OR
* Combination, as approved by PFRDA.
Relaxations based on corpus:
* **Up to ₹8 lakh** → 100% lump sum allowed.
* *₹8 lakh – ₹12 lakh → * Lump sum limited to **₹ *6 lakh***
* Balance via structured withdrawal or annuity.
* **Above ₹12 lakh** →
* Max **60% lump sum**
* Minimum **40% annuity**.
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B. *Resignation / Removal / Dismissal*
* **Minimum 80% compulsory annuity**.
* Balance payable as lump sum / structured withdrawal.
* If total corpus *≤ ₹5 lakh** → *100% lump sum permitted.*
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# C. Death while in Service / Before Exit
* **Minimum 80% annuity** for family.
* Balance payable to **nominee(s) / legal heir(s)**.
* Relaxation:
* Corpus ≤ ₹8 lakh → 100% lump sum allowed.
* ₹8–12 lakh → ₹6 lakh lump sum allowed.
* Default annuity includes:
* Subscriber + spouse (if any)
* Return of purchase price on death.
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# D. *Disability / Invalid Retirement*
* Treated **at par with retirement**.
* Same annuity and lump sum rules apply.
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# 5. Non-Government / Corporate / All Citizen Subscribers
A. Exit at 60 Years or After Minimum Subscription
* **Minimum 20% annuity compulsory**.
* Balance payable as lump sum or structured withdrawal.
# Corpus-based relaxation:
* ≤ ₹8 lakh → 100% lump sum allowed.
* ₹8–12 lakh → Lump sum up to ₹6 lakh.
* > ₹12 lakh → Max 80% lump sum, min 20% annuity.
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# B. Premature Exit (Before Eligibility)
* **Minimum 80% annuity compulsory**.
* If corpus ≤ ₹5 lakh → full withdrawal allowed.
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# C. Death Before Exit
* **Entire corpus payable** to nominee(s)/legal heir(s).
* Option for:
* Lump sum, OR
* Structured withdrawal, OR
* Annuity.
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# D. *Joining NPS after 60 Years*
* Minimum 20% annuity on exit.
* If corpus ≤ ₹12 lakh → full withdrawal allowed.
* On death → 100% corpus payable to nominees.
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#6. *NPS-Lite / Swavalamban Subscribers*
## Exit at 60 Years
* ≤ ₹2 lakh → 100% lump sum allowed.
* > ₹2 lakh → Max 60% lump sum, min 40% annuity.
# *Premature Exit*
* ≤ ₹2 lakh → 100% lump sum.
* > ₹2 lakh → Max 20% lump sum, min 80% annuity.
### Death
* 100% corpus payable to nominee(s).
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## 7. Partial Withdrawals (Tier-I) – Expanded & Liberalised
# Quantum
* Up to **25% of subscriber’s own contribution**.
# Permitted Purposes(expanded):
* Purchase / construction of house (self or spouse).
* Medical treatment / hospitalisation of:
* Self
* Spouse
* Children (including adopted)
* Parents
* Repayment of loans taken against NPS (lien-marked accounts).
### Frequency
* **Before 60 years**:
* Maximum **4 withdrawals**
* Minimum **4 years gap**.
* **After 60 years**:
* Partial withdrawals allowed
* Minimum **3 years gap**.
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## 8. Tier-II Account Clarifications
* Tier-II is linked to individual pension account.
* Automatically closed when pension account is closed.
* Funds treated separately from Tier-I corpus.
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# 9. Loans Against NPS
* Subscriber can create **lien / charge** on NPS account:
* In favour of regulated financial institutions.
* Loan permitted **within limits specified by PFRDA**.
* Enables use of NPS savings as collateral.
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## 10. Missing & Presumed Dead Subscribers
* **20% of corpus** paid immediately as **interim relief**.
* Balance **80% invested** till legal declaration.
* After declaration under **Indian Evidence Act, 2023**:
* Final settlement as per applicable exit rules.
* If subscriber later found alive:
* Interim relief adjusted at final exit.
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## 11. Citizenship Renunciation
* If subscriber ceases to be Indian citizen:
* Can **close account**.
* **Full corpus withdrawal** allowed as per PFRDA guidelines.
* Strengthens **subscriber choice & dignity**.
* Reduces hardship in **low-corpus cases**.
* Ensures **family protection** in death/missing cases.
* Makes NPS more **flexible, humane and practical**, while retaining pension security.
A.Kesavan
*Divisional Secretary & AGS*
NFPE P3 Kanchipuram Division
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