Pension regulator PFRDA relaxes norms, allows partial withdrawal under NPS

Relaxing norms, PFRDA has permitted partial withdrawal under the National Pension System (NPS) for purchase of residential premises, treatment of critical illness, higher education and marriage of children.

NPS subscribers who have contributed for three years can now withdraw up to 25 per cent of the corpus for meeting specified expenses, Pension Fund Regulatory Development Authority (PFRDA) said in a circular.

"A subscriber on the date of submission of the withdrawal form, shall be permitted to withdraw not exceeding 25 per cent of the contributions made by such subscriber to his individual pension account" for specified purposes, it said.

The withdrawal will be permitted only three times during the tenure of the subscription, it added.

The specified purposes for which funds could be withdrawn from the NPS account, include higher education of children or their marriage. The withdrawal will be also permitted for purchase/ construction of residential house or flat.

The circular further said that "in case the subscriber already owns either individually or in the joint name a residential house or a flat, other than ancestral property", no withdrawal will be permitted.

Funds can also be withdrawan for treatment of illnesses like cancer, kidney failure, coronary artery bypass graft, heart valve surgery and paralysis.

NPS is government's flagship social security programme.