BackNew NPS withdrawal rules come into effect today: All you need to know
The new rules for withdrawal from the NPS will make annuity payments faster and simpler for subscribers exiting the NPS
PremiumThe Pension Fund Regulatory and Development Authority (PFRDA) has made it mandatory for all National Pension System (NPS) subscribers to upload certain documents as of 1 April, 2023 to the Central Record-Keeping Agency (CRA) user interface before withdrawing the pension corpus.
The new rules for withdrawal from the NPS will make annuity payments faster and simpler for subscribers exiting the NPS.
"In the interest of Subscribers and to benefit them with the timely payment of annuity income, the upload of the documents shall be mandatory with effect from 1st April 2023," PFRDA, a regulatory body for the overall supervision and regulation of pensions in India had earlier said.
The documents include -
- NPS exit/withdrawal form
- Proof of identification and residence as stated in the withdrawal request
- Bank account proof
- Copy of the Permanent Retirement Account Number (PRAN) card
The pension body said that the upload of the documents shall be mandatory with effect from 1 April, 2023 in the interest of Subscribers and to benefit them with the prompt distribution of annuity income.
567,116 beneficiaries of NPS at present
There are 567,116 beneficiaries above the age of 60 years currently under the NPS. The minister quoted the figures from PFRDA.
Under the old pension scheme, a government employee is entitled to a monthly pension after retirement. The monthly pension is typically half of the last drawn salary of the person.
Under the new pension scheme, employees contribute a portion of their salaries to the pension fund. Based on that, they are entitled to a one-time lump sum amount on superannuation.
For the record, the old pension scheme was discontinued in December 2003, and the new pension scheme came into effect on 1 April, 2004.
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