Pension regulator relaxes withdrawal norms under NPS

National Pension System subscribers who have contributed for three years can now withdraw up to 25% of the corpus for meeting specified expenses.

Relaxing norms, Pension Fund Regulatory Development Authority (PFRDA) has permitted partial withdrawal under the National Pension System (NPS) for purchase of residential premises, treatment of critical illness, higher education and marriage of children.

The specified purposes for which funds could be withdrawn from the National Pension System account, include higher education of children or their marriage. The withdrawal will be also permitted for purchase/ construction of residential house or flat. (File)

NPS subscribers who have contributed for three years can now withdraw up to 25% of the corpus for meeting specified expenses, PFRDA said in a circular.

“A subscriber on the date of submission of the withdrawal form, shall be permitted to withdraw not exceeding 25% of the contributions made by such subscriber to his individual pension account” for specified purposes, it said.

The withdrawal will be permitted only three times during the tenure of the subscription, it added.

The specified purposes for which funds could be withdrawn from the NPS account, include higher education of children or their marriage. The withdrawal will be also permitted for purchase/ construction of residential house or flat.

The circular further said that “in case the subscriber already owns either individually or in the joint name a residential house or a flat, other than ancestral property”, no withdrawal will be permitted.

NPS is government’s flagship social security programme.