The Pension Fund Regulatory and Development Authority (PFRDA) issued a circular on 27th October, 2023 that as per the existing exit guidelines, the subscribers post 60 years/superannuation can defer availing of annuity & withdrawing the lump sum on any combination till 75 years of age.
The lump sum amount can be withdrawn in a single tranche or it can be withdrawn on an annual basis. If withdrawn annually, the subscriber has to initiate the withdrawal request each time and authorized.
It has been proposed to provide the option of phased withdrawal of the lump sum through the Systematic Lump Sum Withdrawal (SLW) facility. The subscribers are allowed to withdraw up to 60% of their pension corpus, through the SLW on a periodical basis viz. monthly, quarterly, half-yearly or annually for a period till 75 years of age as per the choice at the time of their normal exit.
All Nodal offices, Points of Presence, NPST and Corporate can disseminate the information about SLW for the associated Subscribers who superannuate or reach the age of 60 years and plan to exit from NPS. Central Record Keeping Agencies (CRAs) can publish FAQs and release educational podcasts on SLW, highlighting its benefits and explaining the process of initiating SLW on their websites.
