NPS Lite Swavalamban subscribers can exit earlier than 25 yrs if corpus at Rs1 lakh

NEW DELHI:The Pension Fund Regulatory and Development Authority (PFRDA) has amended the untimely exit rule for subscribers of the NPS Lite Swablamban scheme.

As per the amended rule, NPS Lite subscribers aren’t required to proceed within the scheme for a minimal 25 years if their pension corpus just isn’t greater than Rs1 lakh and if they aren’t eligible for migrating to the Atal Pension Yojana (APY).

NPS Lite was designed to make sure safe way forward for those that are economically disadvantaged and never financially properly to do.

As PFRDA round issued on 2 July mentioned, “As per the 6th amendment of exit regulations, the Swavalamban Subscribers whose accumulated pension wealth do not exceed one lakh rupees and if they are not eligible to migrate to Atal Pension Yojana (APY), can opt to exit with lump-sum payment prematurely. Those eligible subscribers, as mentioned above, are not required to continue in the Swavalmban scheme for a minimum period of twenty-five years irrespective of the receipt of the Govt of India (GoI) co-contribution under Swavalamban by them. However, if GoI’s co-contribution was availed by those eligible Subscribers and the same shall be deducted along with the returns generated from the corpus at the time of their exit.”

The collected corpus of those subscribers will probably be calculated after deducting the federal government’s contribution, if any, and the returns thereon.

For occasion, a Swavalamban subscriber who’s aged 43 years and can’t migrate to APY, has a corpus of ₹1.04 lakh in his Swavalamban PRAN and of which, the federal government’s contribution and returns represent Rs4,500. The subscriber will probably be eligible for a untimely exit.

Hence, these Swavalamban subscribers who fulfil the standards can submit their withdrawal claims to the related POPs/Aggregators. “Central Record Keeping Agency (CRA) is advised to communicate to the eligible Swavalamban subscribers and POP/Aggregators about the clarification thus provided above,” mentioned the round.

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