Wednesday, March 20, 2013

NPS (National Pension Scheme ) replace ‘Phased Withdrawal’ with ‘Deferred Withdrawal’


on Wednesday, March 20, 2013

Good News for All Central Government ,State Government employee and other National pension scheme subscribers as PFRDA has changed exit policy from the scheme. Now you can withdraw 60 % amount  in lump sum , any time after exit from the scheme  and if this option is not exercised by the subscriber up to age 70, funds would be automatically transferred to subscriber account. relevant circular dated 14.03.2013 reproduced here under.

Sub: Circular on replacing the existing facility of ‘Phased Withdrawal’ with ‘Deferred Withdrawal’

Feedback is being received from various stakeholders that the subscribers be given a specific option to defer or time the entire lump sum withdrawal (max 60%) at the time of exit from National Pension System (NPS) rather than forcing them to choose a certain percentage (%) each and every year while choosing the existing ‘Phased withdrawal’ option, including the year in which they are exiting the system.

The matter has been examined by the Authority and it has been decided to replace the “Phased Withdrawal” option currently available with a “Deferred withdrawal” option whereby the subscriber can time the lump sum withdrawal allowed under NPS at the time of exit, with immediate effect.

Under the Deferred withdrawal facility, the subscribers at the time of exit from National Pension System (NPS) can exercise an option to defer the withdrawal of eligible lump sum withdrawal and stay invested in the NPS. 

However, it may be noted that no fresh contributions are accepted and also no partial withdrawals are allowed during such a period of deferment. The subscriber can withdraw the deferred lump sum amount at any time before attaining the age of 70 years by giving a withdrawal application or notice. 

If no such notice is given, the accumulated pension wealth would be automatically monetized and credited to his bank account upon attaining the age of 70 years.


National Pension System Status - March 2013

A. Sector wise NPS status as on March 2, 2013

Status of Implementation of NPS by various States
Number of
States
Total Number of States
28
Number of States joined NPS
22
States notified joining NPS but have not taken any further steps
(Maharashtra, Tamilnadu, Arunachal Pradesh)
3
States not joined NPS (West Bengal, Kerala*, Tripura)
3

 Till date 9506 Tier II accounts have been activated.
B. Status of Implementation of NPS by various States
Sl. No.
Employer/Sector
Number of
subscribers
Corpus under NPS
(In crore)
1
Central Government
1,125,871
17,047
2
State Government
1,585,349
9,780
3
Private Sector
202,679
1,254
4
NPS-Lite
1,579,690
412

Total
4,493,589
28,493

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  1. How Redemption will done for rest 40% amount after attaining 70 Years of age.?
    What if one need whole amount before 70years of age.?

    ReplyDelete
    Replies
    1. Balance 40% is to be used for pension payment

      Delete