Pension Fund Regulatory and Development Authority (PFRDA) vide their circular letter dated 10.01.2018 has modified and norms for partial withdrawals have been liberalized effective from the date of the notification of first amendment i.e. 10-08-2017.
The following provisions have been notified in respect of the partial withdrawals under National Pension System (NPS).-
A partial withdrawal of accumulated pension wealth of the subscriber, not exceeding twenty-five per cent. of the contributions made by the subscriber and excluding contributions made by employer, if any, at any time before exit from National Pension System subject to the terms and conditions, purpose, frequency and limits specified below:-
A subscriber on the date of submission of the withdrawal form, shall be permitted to withdraw not exceeding twenty-five percent. of the contributions made by such subscriber to his individual pension account, for any of the following purposes only:-
The permitted withdrawal shall be allowed only if the following eligibility criteria and limit for availing the benefit are complied with by the subscriber:- (a) the subscriber shall have been in the National Pension System at least for a period of three years from the date of his or her joining;
The subscriber shall be allowed to withdraw only a maximum of three times during the entire tenure of subscription under the National Pension System. The request for withdrawal shall be submitted by the subscriber, along with relevant documents to the central recordkeeping agency or the National Pension System Trust, as may be specified, for processing of such withdrawal claim through their nodal office. Provided that where a subscriber is suffering from any illness, specified in sub-clause (d), the request for withdrawal may be submitted, through any family member of such' subscriber.