NATIONAL PENSION SYSTEM
When and how can a subscriber withdraw the amount from Tier I account?
As per the guidelines for withdrawal stipulated by Pension Fund Regulatory & Development Authority (PFRDA)/Ministry of Finance(MOF), the subscribers can exit form New Pension System (NPS) on his / her retirement, resignation or death. a) Upon Normal Superannuation: At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and balance is paid as lump sum payment to the subscriber. However, the subscriber may opt for withdrawal of total pension wealth if it is less than 2 lacs. b) Upon Death: The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension. c) Exit from NPS before the age of Normal superannuation
(irrespective of cause): At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and the balance is paid as a lump sum payment to the subscriber It is clarified that the component for annuitisation doesn’t attract any tax whereas the lumsum withdrawal does have tax deductions as per applicable tax laws.
Click here for more about National Pension Scheme-NPS
When and how can a subscriber withdraw the amount from Tier I account?
As per the guidelines for withdrawal stipulated by Pension Fund Regulatory & Development Authority (PFRDA)/Ministry of Finance(MOF), the subscribers can exit form New Pension System (NPS) on his / her retirement, resignation or death. a) Upon Normal Superannuation: At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and balance is paid as lump sum payment to the subscriber. However, the subscriber may opt for withdrawal of total pension wealth if it is less than 2 lacs. b) Upon Death: The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the subscriber and there would not be any purchase of annuity/monthly pension. c) Exit from NPS before the age of Normal superannuation
(irrespective of cause): At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of annuity providing for monthly pension to the subscriber and the balance is paid as a lump sum payment to the subscriber It is clarified that the component for annuitisation doesn’t attract any tax whereas the lumsum withdrawal does have tax deductions as per applicable tax laws.
Click here for more about National Pension Scheme-NPS
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