The Pension Fund Regulatory and Development Authority through the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, has laid down the eligibility for claiming the whole pension wealth upon exit or withdrawal. The Regulation 5 lays down the options for Exit from National Pension System by NPS-Lite and Swavalamban subscribers. The proviso to sub regulation (b) of the same lays down the eligibility to claim whole pension wealth without annuitisation. These requirements include: accumulated pension wealth should not exceed one lakh rupees & the subscriber should have continued in the scheme for a minimum period of twenty-five years.
These requirements are relaxed by the authority through the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Sixth Amendment) Regulations, 2019. The amendment excludes the requirement of completion of twenty-five years for claiming whole of the pension wealth. The subscribers who have availed any Swavalamban co-contribution and are also eligible for auto migration to Atal Pension Yojana are expressly exempt under the amendment from claiming the whole of pension wealth.
To read the full notification Click here
