Introduction of Retirement Income Schemes (RIS) and Drawdown options under the National Pension System (NPS)

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पेंशन निधि विनियामक और विकास प्राधिकरण

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

CIRCULAR

File No.- PFRDA/2026/31/MWnR/01

Date: 15th May 2026

To,

All Stakeholders under NPS,

Subject: Introduction of Retirement Income Schemes (RIS) and Drawdown options under the National Pension System (NPS)

1. Building upon the frameworks established through Circular No. PFRDA/2016/8/PFM/03 dated 04 November 2016, Circular No. PFRDA/2023/30/SUP-CRA/10 dated 27 October 2023, and Circular No. PFRDA/2024/17/PDES/02 dated 01 October 2024, the Authority hereby introduces Retirement Income Schemes (RIS) and Drawdown Options under the National Pension System (NPS).

2. In line with the PFRDA (Exits and Withdrawals under the NPS) (Amendment) Regulations, 2025, this initiative aims to provide subscribers with more flexible periodic payout options during their decumulation phase while continuing to support corpus appreciation through the Retirement Income Schemes.

3. Under the RIS, subscribers are provided the flexibility to select a phased withdrawal of their designated pension corpus through any drawdown option. Consequently, these withdrawals shall have no impact on the mandatory annuitisation requirement of 20% or 40% of the corpus, as the case may be, thus ensuring that the minimum statutory requirement for a life-long pension remains intact.

4. These drawdown options shall be available to Government and Non-Government Subscribers (NGS) under NPS. The subscribers will be allowed to receive payouts on a periodical basis viz. monthly, quarterly or annually, for a period up to 85 years of age or as per the choice exercised by the subscriber, at the time of their exit from NPS.

5. These guidelines shall take effect from the date notified by the Authority, following the implementation of necessary system capabilities and operational framework.

This Circular and the related Guidelines are issued in exercise of the powers conferred under Section 14 of the Pension Fund Regulatory and Development Authority Act, 2013.

Yours Sincerely,

Alpe Vath

Dr. Alpana Vats, (General Manager)

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