Relaxation of Norms for National Pension Scheme (Exits and Withdrawals under NPS)

RELAXATION OF NORMS FOR NPS 

GOVERNMENT OF INDIA 
MINISTRY OF FINANCE 
DEPARTMENT OF FINANCIAL SERVICES 

LOK SABHA 
UN STARRED QUESTION NO. 4760 
TO BE ANSWERED ON MARCH 23, 2018/CHAITRA 2, 1940 (SAKA) 

RELAXATION OF NORMS FOR NPS 

4760. Prof. Prem Singh Chandumajra 

Shri Kundariya Mohan Bhai Kalyanji Bhai 

Will the Minister of FINANCE be pleased to state 

(a) whether the Government has recently made changes in the National Pension Scheme (NPS) including withdrawal norms; and 

(b) if so, the details and the objectives thereof? 

ANSWER 

The Minister of State in the Ministry of Finance 
(Shri Shiv Pratap Shukla) 

(a) & (b) Yes, recently three changes have been made under National Pension System (NPS). The details are as under: 

1. Partial withdrawal during the service: The Pension Fund Regulatory and Development Authority (PFRDA), with an objective to meet the subscriber’s sudden financial requirement enrolled under NPS, has liberalized norms for partial withdrawals which also include reduction of requirement of minimum years of being enrolled under NPS from 10 years to 3 years from the date of joining. Suitable amendments were made through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations, 2017 and the same has been notified on 10.08.2017. 

2. Increase in the joining age under NPS: With an objective to allow individuals (under NPS-All Citizen Model and Corporate Sector Model) who are in the age bracket between 60 years and 65 years to join NPS system. Suitable amendments were made through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Second Amendment) Regulations, 2017 and the same has been notified on 06.10.2017. 

3. Exit in case of disability and incapacitation of the subscriber: With an objective of facilitating easy exit & withdrawal in case of disability and incapacitation of the subscriber covered under NPS, PFRDA has made suitable amendments through “Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Third Amendment) Regulations, 2018 and the same has been notified on 02.02.2018. 

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