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
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). –
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) 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:
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