Key amendments in PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015

I. Non-Government Sector (All Citizen Model and Corporate Sector)

Changes applicable uniformly to Common Schemes (CS) & Multiple Scheme Framework (MSF)

Lock-in period

1

All Citizen Model:

Minimum lock-in period to be eligible for premature exit → 5 years

All Citizen Model (CS & MSF):

Minimum lock-in period removed

Normal Exit

2

All Citizen Model:

Vesting period → Till 60 years of age to be eligible for normal exit

All Citizen Model (CS & MSF):

Vesting period → 15 years or till 60 years of age (whichever is earlier).

3

Corporate Sector:

Vesting period → Till age of retirement / superannuation

Corporate Sector (CS and MSF):

Vesting period → Till age of retirement / superannuation

(Remains same)

4

All Citizen Model & Corporate Sector:

Up to 60% lumpsum;

At least 40% annuity

All Citizen Model & Corporate Sector (CS & MSF):

Up to 80% lumpsum;

At least 20% annuity

5

All Citizen Model & Corporate Sector:

For corpus ≤ ₹5 lakh → 100% lumpsum

All Citizen Model & Corporate Sector (CS & MSF):

a) Corpus ≤ ₹8 lakh:

100% lumpsum or SLW or SUR

(or)

Up to 80% lumpsum & At least 20% annuity

b) Corpus > ₹8 lakh ≤ ₹12 lakh:

Up to ₹6 lakh as lumpsum and balance as SUR for min. 6 years or annuity.

(or)

Up to 80% lumpsum & At least 20% annuity

c) Corpus > ₹12 lakh:

Up to 80% lumpsum & At least 20% annuity

Premature Exit

6

All Citizen Model & Corporate Sector:

Up to 20% lumpsum;

At least 80% annuity

All Citizen Model & Corporate Sector (CS & MSF):

Up to 20% lumpsum;

At least 80% annuity (Remains same)

7

All Citizen Model & Corporate Sector:

For corpus ≤ ₹2.5 lakh → 100% lumpsum

All Citizen Model & Corporate Sector (CS & MSF):

a) Corpus ≤ ₹5 lakh:

100% lumpsum or SLW or SUR

(or)

Up to 20% lumpsum & At least 80% annuity

b) Corpus > ₹5 lakh:

Up to 20% lumpsum & At least 80% annuity

Exit due to Death

8

All Citizen Model & Corporate Sector:

100% lumpsum; Option for annuity, if desired.

All Citizen Model & Corporate Sector (CS & MSF):

100% lumpsum; Option for annuity, if desired.

(Remains same)

Additionally, option for availing SLW or SUR.

II. Individuals joining NPS after age of 60 years (All Citizen Model)

Normal Exit

9

Vesting period → 3 years to be eligible for normal exit

Vesting period removed

10

Up to 60% lumpsum;

At least 40% annuity

Up to 80% lumpsum;

At least 20% annuity

11

For corpus ≤ ₹5 lakh → 100% lumpsum

a) Corpus ≤ ₹12 lakh:

100% lumpsum or SLW or SUR.

(or)

Up to 80% lumpsum & At least 20% annuity

b) Corpus > ₹12 lakh:

Up to 80% lumpsum & At least 20% annuity

Premature Exit

12

Up to 20% lumpsum;

At least 80% annuity

Not applicable as the vesting period has been removed

Exit due to Death

13

100% lumpsum permitted; Option for annuity, if desired.

100% lumpsum permitted; Option for annuity, if desired. (Remains same)

Additionally, option for availing SLW or SUR.

III. Government Sector

Normal Exit

14

Up to 60% lumpsum;

At least 40% annuity

Up to 60% lumpsum;

At least 40% annuity; (Remains same)

15

For corpus ≤ ₹5 lakh → 100% lumpsum

a) Corpus ≤ ₹8 lakh:

100% lumpsum or SLW or SUR

(or)

Up to 60% lumpsum & At least 40% annuity

b) Corpus > ₹8 lakh ≤ ₹12 lakh:

Up to ₹6 lakh as lumpsum and balance as SUR for min. 6 years or annuity.

(or)

Up to 60% lumpsum & At least 40% annuity

c) Corpus > ₹12 lakh:

Up to 60% lumpsum & At least 40% annuity

Premature Exit

16

Up to 20% lumpsum;

At least 80% annuity

Up to 20% lumpsum;

At least 80% annuity; (Remains same)

17

For corpus ≤ ₹2.5 lakh → 100% lumpsum

a) Corpus ≤ ₹5 lakh:

100% lumpsum or SLW or SUR

(or)

Up to 20% lumpsum & At least 80% annuity

b) Corpus > ₹5 lakh:

Up to 20% lumpsum & At least 80% annuity

Exit due to Death

18

Up to 20% lumpsum;

At least 80% annuity

Up to 20% lumpsum;

At least 80% annuity; (Remains same)

19

For corpus ≤ ₹5 lakh → 100% lumpsum

a) Corpus ≤ ₹8 lakh:

100% lumpsum or SLW or SUR

(or)

Up to 20% lumpsum & At least 80% annuity

b) Corpus > ₹8 lakh ≤ ₹12 lakh:

Up to ₹6 lakh as lumpsum and balance as SUR for min. 6 years or annuity.

(or)

Up to 20% lumpsum & At least 80% annuity

c) Corpus > ₹12 lakh:

Up to 20% lumpsum & At least 80% annuity

IV. Other changes

Entry and Exit Age

20

Maximum entry age up to 70 years; exit age up to 75 years.

Entry and exit age increased to 85 years.

Automatic continuation

21

Subscriber to intimate 15 days prior to 60 / superannuation for continuation (Govt) or deferment of annuity and/or lumpsum (Govt & Non-Govt).

15-day prior intimation requirement removed across sectors, hence subscribers can automatically continue under NPS.

Specific Purpose Scheme

22

–

1. New regulation enabling exit/withdrawal provisions for ‘specific purpose schemes’ under NPS.
2. To be governed by Guidelines issued by the Authority for each such scheme.

Financial assistance against pension corpus

23

Assignment or pledge of NPS benefits void except where permitted by NPS Trust.

1. Subscriber can seek financial assistance from a regulated financial institution and the lender may mark lien or charge on the individual pension account up to 25% of subscriber’s own contribution (i.e. within partial withdrawal limits).
2. To be governed by Guidelines issued by the Authority.

Frequency of Partial Withdrawal

24

During the tenure of subscription (i.e. before exit) →

1. Frequency: 3 times.
2. Interval not stipulated between two withdrawals

i) Before 60 years age / superannuation (whichever is later):

1. Frequency: 4 times
2. Interval: 4 years between two withdrawals

ii) Post 60 years age / superannuation (whichever is later):

1. Frequency: NA
2. Interval: 3 years between two withdrawals

Purpose of Partial Withdrawal

25

Purchase or construction of a residential house permitted if subscriber does not already own a house (other than ancestral property).

No change, but additionally clarified it as a one-time withdrawal.

Treatment of specified illness limited to a comprehensive list of specified critical illnesses (for subscriber / spouse / children / parents).

Broadened to medical treatment/hospitalization without a specified list (for subscriber/spouse/children/parents).

Skill development, re-skilling, self-development activities (for subscriber).

Removed

Establishing a start-up or own venture (for subscriber).

Removed

New purpose

New purpose added: Settlement of a financial obligation of the subscriber taken from a regulated financial institution against lien/charge on NPS account.

V. NPS-Lite

Normal Exit

26

Up to 60% lumpsum;

At least 40% annuity

Up to 60% lumpsum;

At least 40% annuity; (Remains same)

27

For corpus ≤ ₹1 lakh → 100% lumpsum

a) Corpus ≤ ₹2 lakh:

100% lumpsum (or)

Up to 60% lumpsum & At least 40% annuity

b) Corpus > ₹2 lakh:

Up to 60% lumpsum & At least 40% annuity

Premature Exit

28

Up to 20% lumpsum;

At least 80% annuity

Up to 20% lumpsum;

At least 80% annuity; (Remains same)

29

For corpus ≤ ₹1 lakh → 100% lumpsum

a) Corpus ≤ ₹2 lakh:

100% lumpsum (or)

Up to 20% lumpsum & At least 80% annuity

b) Corpus > ₹2 lakh:

Up to 20% lumpsum & At least 80% annuity

Exit due to Death

30

100% lumpsum permitted; Option for annuity, if desired.

100% lumpsum permitted; Option for annuity, if desired. (Remains same)

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