Govt. eases norms for partial withdrawal under pension scheme

The Pension Fund Regulatory Development Authority (PFRDA) relaxed the norms for partial withdrawal under the National Pension Scheme (NPS).

The same was clarified by Minister of State (MoS) for Finance Shiv Pratap Shukla in a written reply to a question in Rajya Sabha earlier on Tuesday.

In accordance with the PFRDA (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations 2017, the subscriber must be subscribed to the NPS for at least a period of three years from the date of his or her joining, to be eligible to make partial withdrawals, under specific circumstances as specified in such regulations.

The subscribers can withdraw after three years from the date of joining the system and a maximum of three times during the entire tenure of subscription under the NPS, but the partial withdrawal is linked with the contributions made by the subscriber.

The subscriber shall be permitted to withdraw accumulations not exceeding 25 percent of the contributions made by him or her and standing to his or her credit in his or her individual pension account, as on the date of application for withdrawal.

Earlier, subscribers under the pension scheme were permitted to withdraw accumulations not exceeding 25 percent of the contributions made by him or her after 10 years from the date of his or her joining the system and a maximum of three times during the entire tenure of subscription under the scheme.