PFRDA Relaxed Withdrawal Norms For National Pension Scheme
Pension Fund Regulatory Development Authority (PFRDA) has relaxed the norms for partial withdrawal under the National Pension Scheme (NPS). NPS subscribers who have contributed for three years can now withdraw up to 25% of the corpus subject to conditions. Earlier, NPS subscribers were allowed to make a withdrawal from the corpus only after 10 years.
National Pension Plan Withdrawal Conditions
- A subscriber, on the date of submission of the withdrawal form, shall be permitted to withdraw not exceeding 25% of the contributions made by such subscriber to his/her individual pension account, PFRDA said in its latest circular.
- Such withdrawals, however, will be allowed only for higher education of his/her child including legally adopted child, marriage of his/her child including a legally adopted child.
- Withdrawals can also be made for the purchase or construction of a residential house or flat in his or her own name or in a joint name with his or her legally wedded spouse.
- In case, the subscriber already owns either individually or in the joint name a residential house or flat, other than ancestral property, no withdrawal under these regulations shall be permitted, PFRDA stated.
- National Pension Scheme subscribers can withdraw money for treatment of specified illnesses for himself, legally wedded spouse, including a legally adopted child and dependent parents.
- Subscribers can withdraw money for hospitalisation and treatment for cancer, end stage renal failure, primary pulmonary arterial hypertension, multiple sclerosis, major organ transplant, coronary artery bypass graft, aorta graft surgery, heart valve surgery, stroke, myocardial infraction, coma, total blindness, paralysis, accident of serious/life threatening nature and any other illness of a life threatening nature stipulated in the circulars, guidelines or notifications issued by PFRDA from time to time.
- Subscribers are allowed to withdraw only a maximum of three times during the entire tenure of subscription under National Pension Scheme.
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