Facility of Systematic Lump sum Withdrawal for NPS Subscribers
PFRDA circular PFRDA/2023/30/SUP-CRA/10 · 27 Oct 2023
Official title
Facility of Systematic Lump sum Withdrawal (SLW) for NPS Subscribers
PFRDA circular PFRDA/2023/30/SUP-CRA/10 · 27 Oct 2023
Official title
Facility of Systematic Lump sum Withdrawal (SLW) for NPS Subscribers
Summary
Check the official recordThe Pension Fund Regulatory and Development Authority has introduced the Systematic Lump Sum Withdrawal (SLW) facility for National Pension System (NPS) subscribers. This option allows subscribers who have reached the age of 60 or superannuated to withdraw up to 60% of their pension corpus in a phased manner. Withdrawals can be scheduled on a monthly, quarterly, half-yearly, or annual basis until the age of 75. This facility is intended to simplify the withdrawal process, as it removes the requirement for subscribers to initiate individual withdrawal requests for each annual tranche. Nodal offices, Points of Presence, and Central Record Keeping Agencies are encouraged to disseminate information and provide educational resources regarding this new facility to eligible subscribers.
What you must do
Who is affected
Thresholds
Circular
Circular no: PFRDA/2023/30/SUP-CRA/10
27th Oct, 2023
To All NPS Stake Holders
Subject: Facility of Systematic Lump sum Withdrawal (SLW) for NPS Subscribers
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 The lump sum amount can be withdrawn in a single tranche or it can be withdrawn on an annual basis. If withdrawn annually, the Subscriber has to initiate the withdrawal request each time and authorized.
In accordance with Regulation 3 and Regulation 4 of PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015 and amendments therein, it is proposed to provide the option of phased withdrawal of the lump sum through 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 reaching 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 and social media platforms.
This circular is issued in exercise of powers conferred under section 14 (1) of The Pension Fund Regulatory & Development Authority Act, 2013.
Digitally signed by K MOHAN GANDHI Chief General Manager
बी – १४/ए, छत्रपति शिवाजी भवन, कुतुब संस्थागत क्षेत्र, कटवारिया सराय ,नई दिल्ली – ११० ०१६ दूरभाष: 011 - 26517501, 26133730, 26133730 फैक्स: 011 – 26517507, वेबसाइट :www.pfrda.org.in B-14/A, Chhatrapati Shivaji Bhawan, Qutab Institutional Area, Katwaria Sarai, New Delhi – 110 016 Phone : 011 - 26517501, 26133730 ,26133730 Fax: 011 – 26517507 website: www.pfrda.org.in