NPS Update: In the coming days, fund withdrawal from NPS account can be increased from 60 percent to 100 percent. PFRDA has recently launched systematic withdrawal facility for NPS members.
There are preparations for major changes in the rules of the National Pension Scheme (NPS) soon. Withdrawal of amount from NPS account can be increased from 60 percent to 100 percent through Systematic Withdrawal Facility (SLW). Dr. Deepak Mohanty, Chairman of Pension Fund Regulator (PFRDA) has given this indication in the recently organized NPS Chintan Shivir.
It is noteworthy that PFRDA has recently launched systematic withdrawal facility for NPS members. Under this, members can withdraw 60 percent of the maturity amount received after retirement or at the age of 60 years on monthly/quarterly/half yearly or yearly basis.
This facility is available from the date of retirement till the age of 75 years. Earlier, this fund was allowed to be withdrawn on annual basis or in lump sum.
What will change for subscribers: NPS subscribers in SLW facility are exempted from purchasing annuity/pension plan till the age of 75 years. This means that members can keep the entire money in the NPS account and withdraw it at regular intervals.
If the new proposal of PFRDA is implemented then members will be allowed to withdraw 100 percent amount from SLW. The pension regulator says that with this the money will remain under the NPS fund for a long time and the members will continue to get the benefit of compound interest. They will like this option more.
Request has to be made like this: NPS subscribers have to make a one-time request through online or offline mode to start SLW facility. Customers will have to specify the start and end date of this facility. They will also have to tell how much amount they want at what interval. The remaining amount after each payment will remain invested in NPS. Returns will continue to be received on this remaining amount.