An exit is defined as closure of individual pension account of the subscriber under National Pension System.
As per PFRDA (Exits & Withdrawals under NPS) Regulations 2015, in following conditions Subscriber can exit from NPS:
Subscriber can decide to remain invested in NPS (Up to 70 years) or can exit from NPS.Following options are available to NPS Subscribers:
You can find the withdrawal form of respective sector from "Form" section available on this website. Based on the different types of Withdrawal request, following forms are made available:
For any superannuating subscriber/subscriber attaining 60 years of age, CRA generates a Claim ID six months prior to the date of superannuation or 60 years of age. CRA intimates the generation of Claim ID to the subscriber vides e-mails, letters, SMS.
In case of Superannuation, CRA generates a Claim ID six months prior to the date of superannuation or 60 years of age. Claim ID is intimated to the subscriber vides e-mails, letters, SMS. Intimation of claim ID enablessix months before enables Subscriber to make any changes (like DOB, address etc.) in hs/her NPS account before initiating withdrawal request. Withdrawal request cannot be raised without generation of Claim ID.
In case of Pre-mature Exit, the Subscriber needs to contact the POP for generation of Claim ID for Withdrawal of NPS funds. Generation of Claim ID is not required if Withdrawal request is initiated by POP.
Generation of Claim ID is not required to process death online Withdrawal request. POP can directly raise the Withdrawal request for death cases.
Subscriber can initiate Online Withdrawal request through their NPS account log-in. Such request needs to be verified and authorized by the associated POP. In case Subscriber is not able to initiate online Withdrawal request, he or she needs to submit the physical Withdrawal form along with the required documents to the POP.Based on Subscriber's request,POPwill initiate the online Withdrawal request on behalf of the Subscriber.
For details of steps to be followed, you may go through the "Self running Demo" of "withdrawal process for Non-Government Subscriber" available in "Knowledge Centre" section under "Subscriber Corner" on this website.
Following documents are required to be submitted alongwith the duly filled Withdrawal form for Superannuation & Pre-mature Exit:
After submitting required documents, POPwillauthorize the Withdrawal request.
Yes, a subscriber can claim withdrawal in following cases:
In case of Superannuation- A Subscriber can claim 100% Withdrawal if the total accumulated corpus is less than or equal to Rs. 2 Lakh at the time of Superannuation/attaining age of 60 years.
In case of Pre-mature Exit- If total accumulated corpus is less thanor equal to Rs. 1 Lakh, the Subscriber can avail the option of complete Withdrawal. However, you can exit from NPS only after completion of 10 years.
Yes, NPS Subscriber can withdrawcertain amount out of his own contribution. It is considered as partial withdrawal under NPS, for Conditions of partial Withdrawal, please refer question no. 10.
Following are the conditions of Conditional Withdrawal:
Partial withdrawal request can be initiated online by Subscriber. Alternatively, Subscriber can submit physical partial withdrawal form (601-PW) along with documents to POP, based on which POP can initiate online request.. However, POP is required to ‘Authorize’ the Withdrawal request in CRA system.
Following documents are required to be submitted from the nominee/claimant along with the completely filled Withdrawal forms:
After obtaining required documents, POPneeds to capture the online Withdrawal request. Once authorized by the checker ID,POPwill send the Withdrawal form & supporting documents with covering letter to CRA for storage purpose.
Such Withdrawal request will be processed as per below mentioned scenario:
The Withdrawal proceeds are credited in Subscriber/Claimant bank account (as per the bank details provided at the time of initiating online Withdrawal request) through electronic mode only.
Subscriber can check Withdrawal status as per below mentioned option:
In the context of NPS, Annuity refers to the monthly sum received by the Subscriber from the Annuity Service Provider (ASP). A percentage of the pension wealth as decided by the Subscribers (minimum 40% & 80% in case of Superannuation & Pre-mature Exit respectively) is utilized for purchase of Annuity from the empanelled Annuity Service Providers.
Annuity Service Providers (ASPs) are responsible for providing a regular monthly pension to the Subscriber after exit from the NPS. These ASPs are basically Insurance Regulatory and Development Authority (IRDA) regulated Insurance companies which are empanelled by PFRDA to provide Annuity services to the NPS Subscribers. For more details about ASPs, please visit "Annuity Service Provider" section on this website (link given at home page under "Important Links").
In case of pre-mature exit, pension starts immediately, if Subscriber fulfils the Age and Corpus criteria for purchasing Annuity (depending upon choice of ASP and Annuity scheme of the respective Annuity Service Provider).
Following schemes are available with ASPs under NPS:
The pension amount can be calculated based on indicative annuity rates (subject to change from time to time) provided by ASPs. However, the actual annuity amount will depend on the prevailing rates at the time of purchase of annuity. You may visit "Annuity Service Provider (ASP)" page on our website to get the tentative pension amount. Alternatively, you may also visit the respective ASP's website to the tentative pension amount.
Once an Annuity is purchased, the option of cancellation or reinvestment with another Annuity Service Provider or in other Annuity scheme shall not be allowed unless the same is within the time limit specified (free look period as provided in terms of the Annuity contract or specifically provided by the IRDA) by the Annuity Service Provider.
Facility of phased Withdrawal is available for NPS Subscribers. Subscriber can opt for withdrawal of lump-sum amount in a phased manner (up to 10 instalments) over the period from 60 years (or any other retirement age as prescribed by the employer) to 70 years. However, Subscriber has to buy Annuity prior to Phased Withdrawal.
No, Subscriber can't exercise the option of deferment (lump-sum and Annuity) after obtaining the continuation option.
Yes, Subscriber can continue Tier-2 account till the time Tier-1 account is active.
Your Tier II account will also close once you request for closure of Tier I account. Units under Tier II account will be redeemed and amount will be transferred to your given bank account.
For queries related to tax benefits under NPS, please refer questions on "Tax Benefit under NPS" of this FAQs section.