New NPS withdrawal guidelines come into impact immediately: All you might want to know

The Pension Fund Regulatory and Development Authority (PFRDA) has made it necessary for all National Pension System (NPS) subscribers to add sure paperwork as of 1 April, 2023 to the Central Record-Keeping Agency (CRA) consumer interface earlier than withdrawing the pension corpus.

The new guidelines for withdrawal from the NPS will make annuity funds quicker and less complicated 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 physique for the general supervision and regulation of pensions in India had earlier mentioned.

The paperwork embrace –

– NPS exit/withdrawal kind

– Proof of identification and residence as acknowledged within the withdrawal request

– Bank account proof

– Copy of the Permanent Retirement Account Number (PRAN) card

The pension physique mentioned that the add of the paperwork shall be necessary with impact from 1 April, 2023 within the curiosity of Subscribers and to profit them with the immediate distribution of annuity earnings.

567,116 beneficiaries of NPS at current

There are 567,116 beneficiaries above the age of 60 years at present underneath the NPS. The minister quoted the figures from PFRDA.

Under the outdated pension scheme, a authorities worker is entitled to a month-to-month pension after retirement. The month-to-month pension is often half of the final drawn wage of the individual.

Under the brand new pension scheme, workers contribute a portion of their salaries to the pension fund. Based on that, they’re entitled to a one-time lump sum quantity on superannuation.

For the document, the outdated pension scheme was discontinued in December 2003, and the brand new pension scheme got here into impact on 1 April, 2004.

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