PFRDA or The Pension Fund Regulatory and Development Authority which administers NPS (National pension Scheme) has notified liberalized partial withdrawal norms which allows National Pension Scheme (NPS) subscribers to withdraw a maximum of 25 per cent of own contribution at any time prior to the final exit from the scheme i.e. NPS.
Cases Where a Subscriber is Allowed to make Partial Withdrawal
- A subscriber can make a partial withdrawal from his / her NPS account if they are planning higher education for their children which includes a legally adopted child as well
- As per the PFRDA guidelines, a partial withdrawal can be done by the subscribers in case of marrying off their children which includes a legally adopted child as well
- If a subscriber is planning to purchase a house or constructing a residential house or flat in his or her own name or in a joint name of his or her legally wedded spouse. In case the subscriber already owns either individually or in the joint name a residential house or flat, other than ancestral property, no withdrawal under these regulations shall be permitted
- In case a subscriber requires treatment for any specified illness, they are eligible for partial withdrawal. Hence, if a subscriber, his legally wedded spouse, children, including legally adopted child or dependent parents who suffer from any specified illness which shall compromise of hospitalization and treatment in respect of the following disease:
- Cancer
- Kidney failure (end stage renal failure)
- Primary Pulmonary Arterial Hypertension
- Major Organ Transplant
- Coronary Artery Bypass Graft
- Aorta Graft Surgery
- Heart Valve Surgery
- Stroke
- Myocardial Infraction
- Coma
- Total Blindness
- Paralysis
- Accident of serious / life threatening nature
- Any other critical illness of a life threatening nature as stipulated circulars, guidelines or notifications issued by the authority
Limitations of Permitted Withdrawal
PFRDA has fixed certain eligibility criteria to avail the benefit which are as follows:
- The subscriber of NPS is required to have completed at least 3 years from the date of joining
- The subscriber shall be permitted to withdraw accumulation not exceeding 25 % of the contributions made by him or her and standing to his or her credit in his or her individual pension account, as on the date of application of withdrawal.
How Frequently can a Subscriber Withdraw From NPS
According to the guidelines of a pension regulator, a subscriber shall be allowed to withdraw only a maximum of 3 times during the entire tenure of subscription under the NPS. And the request for withdrawal shall be submitted by the subscriber along with relevant documents to the Central record keeping agency or the NPS Trust for processing of such withdrawal claim through their nodal office. However, in case a subscriber is suffering from any of the specified illnesses, the request for withdrawal may be submitted through any family member of the subscriber.