New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has introduced fresh guidelines for withdrawing pensions through the National Pension System (NPS), set to be effective from February 1, 2024. These regulations outline conditions for subscribers looking to make partial withdrawals from their pension accounts.
According to the updated rules, subscribers can withdraw a maximum of 25 percent of their contributions from their pension accounts, excluding the employer’s share. However, this partial withdrawal is subject to specific conditions and purposes.
Permissible Partial Withdrawals
The revised regulations allow partial withdrawals for various reasons, including higher education expenses for the subscriber’s children, marriage expenses, residential property purchase or construction, medical expenses related to specified illnesses, disability-related expenses, skill development, re-skilling, and establishment of a venture or start-up.
Prerequisites For Withdrawals
Subscribers must be members of the NPS for a minimum of three years from their joining date to be eligible for partial withdrawals. The withdrawal amount is capped at one-fourth of the subscriber’s total contributions, with a maximum of three partial withdrawals during their entire subscription period.
Processing Withdrawal Requests
To initiate a withdrawal, subscribers need to submit a request with a self-declaration stating the purpose for withdrawal to the central recordkeeping agency (CRA) through their respective government nodal office or point of presence.
Source By: zeenews
