NFAEE

GUIDELINES ON PROCESS TO BE FOLLOWED BY SUBSCRIBERS AND NODAL OFFICE/ POP/AGGREGATOR FOR PROCESSING OF PARTIAL WITHDRAWAL REQUEST

PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
PFRDA

PFRDA/2016/7/Exit/2

Circular

SUBJECT: GUIDELINES ON PROCESS TO BE FOLLOWED BY SUBSCRIBERS AND NODAL OFFICE/ POP/AGGREGATOR FOR PROCESSING

OF PARTIAL WITHDRAWAL REQUEST

1. Whereas the Authority has notified the Pension Fund Regulatory and Development Authority (Exits and Withdrawals from National Pension System) Regulations. 2015 on 11 May. 2015 and is in force. Chapters of the said regulations inter – alia provide the withdrawals. purpose, frequency and limits under the National Pension System (NPS),
2, Now in exercise of its powers under Section 14 read with sub-clause (b} of sub-section (2) of Section 20 of the Pension Fund Regulatory and Development Authority Act. 2013 and Regulation 7 of the afore mentioned regulations. The following guidelines are issued specifying/clarifying the process to be followed by subscribers. intermediaries and concerned government nodal offices, for the purpose of effecting withdrawals from NPS, as allowed under Chapter Ill of the PFRDA (Exits and 3. As per Regulation 8 of the PFRDA (Exit and withdrawal from National Pension System) Regulations 2015, the partial withdrawals shall be permitted under National Pension System (NPS). –

A partial withdrawal of accumulated pension wealth of the subscriber not exceeding twenty-five per cent of the contributions made by the subscriber and excluding contribution made by employer, if any, at any time before exit from National Pension System subject to the terms and conditions, purpose, frequency and limits specified below: –
(A) purpose:

A subscriber on the date of submission of the withdrawal form shall be permitted to withdraw not exceeding twenty-five percent of the contributions made by such subscriber to his individual pension account, for any of the following purposes only: –

a) For Higher education of his or her children including a legally adopted child. –

b) For the marriage of his or her children, including a legally adopted child:

c) For the purchase or construction of a residential house or flat in his or her own name or in a joint name with 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;

d) For treatment of specified illnesses: if the subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents suffers from any specified illness which shall comprise of hospitalization and treatment in respect of the following diseases:

1.     Cancer

2.     Kidney Failure (End Stage Renal Failure);

3.     Primary Pulmonary Arterial Hypertension;

4.     Multiple Sclerosis

5.     Major Organ Transplant:

6.     Coronary Artery Bypass Graft;

7.     Aorta Graft Surgery;

8.     Heart Valve Surgery;

9.     Stroke;

10. Myocardial ‘infarction

11. Coma;

12. Total blindness:

13. Paralysis;

14. Accident of serious/ life threatening nature:

15. Any Other critical illness of a life threatening nature as stipulated in the circulars, guidelines or notifications Issued by the Authority from time to time.

(B) Limits:

The permitted withdrawal shall be allowed only if the following eligibility criteria and limit for availing the benefit are complied with by the subscriber: –

(a) The subscriber shall have been in the National Pension System at least for a period of last ten years from the date of his or her joining, In case the subscriber is mandatorily covered under NPS the period of ten years for partial withdrawal will be considered from the date of applicability of NPS for such subscribers. However, in case Of inter-sector/intra-sector shifting of subscriber previous tenure in NPS will also be considered.

(b) The subscriber shall be permitted to withdraw accumulations not exceeding twenty- five per cent 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 for withdrawal;

(C) Frequency:

The subscriber shall be allowed to withdraw only a maximum of three times during the entire tenure of subscription under the National Pension System and not jess than a period of five years shall have elapsed from the last date of each of such withdrawal. The mandatory requirement of five years having elapsed between two withdrawals shall not apply in case of “treatment for specified illnesses or in case of withdrawal arising out of exit from National Pension System due to the death of the subscriber For subsequent withdrawal only the incremental contributions made by the subscriber after the date of first/next subsequent withdrawal as the case may be will be allowed. The request for withdrawal in the specified form shall be submitted by the subscriber: along with relevant documents to the central recordkeeping agency or the National Pension System Trust, as may be specified, for processing of such withdrawal claim. Provided that where a subscriber IS suffering from any illness, specified in sub-clause (d), the request for withdrawal may be submitted, through any family member of such subscriber.

At the time of Superannuation/premature/death the amount withdrawn under partial withdrawal till date will be adjusted against the payment of lump sum amount and balance if any win be paid to subscriber.

(D) Partial Withdrawal process:

Partial’ Withdrawal request is required to be submitted by subscriber to CRA through his/her Nodal Office/POP/Aggregator, as may be applicable. The Nodal Office/POP/ Aggregator should satisfy itself about the genuineness the requirement tor partial withdrawal by the subscriber and after satisfying itself the withdrawal application tor release of funds by CRA, On receipt of Partial Withdrawal request CRA will process the withdrawal request in the CRA system, Following are the steps which will be followed by subscriber and Nodal Office/POP/Aggregator for submitting the Partial Withdrawal’ request:

Withdrawals from National Pension System) Regulations, 2015