The Narendra Modi government has eased rules for government employees to withdraw from their pension fund to meet family expenses.
Now an employee can withdraw up to 12 months’ pay or 3/4th of amount on credit, whichever is less. Earlier he or she was allowed to take only 3 months’ pay or half the amount.
Also, the new rules allow a subscriber to take money after completion of 10 years of service against earlier general eligibility of 15 years of service.
The new rules allow withdrawals for education, obligatory expenses, illness and purchase of consumer durables. Employees are also allowed to withdraw for “primary, secondary and higher education, covering all streams and institutions.”
The Centre also increased the withdrawal limit related to housing, housing loan repayment, purchase of land and renovations to existing homes.
“Repayment of car loan, car repairs are also permissible. For these the rules now permit for withdrawal of a common limit of up to 3/4th of amount at credit or cost of vehicle, whichever is lesser,” said a source.