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Wednesday, 28 July 2021

Exit and Withdrawals under the National Pension System (Amendment) Regulations,2021 - Instructions

Cir. Memo No. D4/3058/2013 Dated:27/07/2021

Sub: NATIONAL PENSION SYSTEM - PFRDA's (Exit and Withdrawals under the National Pension System) (Amendment) Regulations,2021 - Instructions to all stake holders in the State - for taking necessary action - Requested- Reg.

Ref: 

01). GO Ms. No. 62, Dated 07/03/2014 of Finance (Pen.l) Department.
02). PFRDA's Gazette Notification published on 11.05.2015.
03). This Office Circular Memo Even No., Dated 04.04.2016 & 21.04.2016.
04). PFRDA's Gazette Notification published on 14.06.2021.

Personal attention of all the Treasury Officers / PAOS / Nodal Officer.2 in the State is invited to the subject cited. They are informed that, vide reference 4th cited, the PFRDA have issued Gazette Notification as PFRDA's (Exit and Withdrawals under the National Pension System) (Amendment) Regulations, 2021 by amending the PFRDA's regulation issued vide reference 2nd cited where 100% withdrawal eligibility is allowed in the following cases;

i. Sub Regulation (a) (V) of Regulation 3 as: The accumulated pension wealth in the Permanent Retirement Account of the subscriber or less than a sum of five lakh rupees, or a limit as specified by the equal to Authority, the subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing annuity and upon such exercise of this option, the right of such subscriber to receive any pension or other amount under the National Pension System or from the government or employer, shall extinguish:

ii. Proviso 3 of sub-regulation (b) of Regulation 3 as: If the accumulated pension wealth of the subscriber is equal to or less than two lakh fifty thousand rupees or a limit to be specified by the Authority, such subscriber shall have the option to withdraw the entire accumulated pension wealth without right of purchasing any annuity and upon such exercise of this option the right of the subscriber to receive any pension or other amounts under the Natio National Pension System shall extinguish and any such exercise of this option by the subscriber, before the notification of this provision, shall be deemed to have been made in accordance with this regulation;

iii. Sub-regulation (c)(ii) of Regulation 3 as: if the accumulated pension wealth in the permanent retirement account of the subscriber at the time of his death is equal to or less than Five lakh rupees or a limit to be specified by the Authority, the nominee or legal heir(s) as the case may be, shall have the option to withdraw the entire accumulated pension wealth without requiring to purchase any annuity and upon such exercise of this option the right of the family members to receive any pension or other amounts under the National Pension System shall extinguish.

And according to the New Withdrawal Regulations made by the PFRDA, 100% withdrawal eligibility limits are enhanced for the following issues:

They are also informed that the above said 100% withdrawal eligibility limits are made functional in NSDL CRA system. Hence, all the officers in the address entry are requested to go through the instructions while processing the withdrawal  requests of the subscriber.

Encl: As Above

Download Cir. Memo, Guidelines

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