National Pension System Lite: You are allowed to withdraw money in these cases
The Pension Fund Regulatory and Development Authority (PFRDA) had come with a National Pension System-Lite (NPS-Lite).
The Pension Fund Regulatory and Development Authority (PFRDA) had come with a National Pension System-Lite (NPS-Lite). The NPS-Lite is designed in order to secure the future of the people who are economically disadvantaged and are not financially well to do. The NSDL has made NPS Lite system, on a low charge structure in which the people in low income groups will be represented via their organisations known as 'Aggregators' who will facilitate in functions like subscriber registration, transfer of pension contributions and subscriber maintenance. The subscribers in the age group of 18 to 60 can join NPS - Lite through the aggregator and contribute till the age of 60.
As per Pension Fund Regulatory & Development Authority As per Pension Fund Regulatory & Development Authority (Exits and Withdrawals from National Pension System) Regulations, 2015, following Withdrawal categories are allowed:
1. Upon Normal Superannuation –
a. The subscriber has to use at least 40% of the accumulated pension wealth for purchase of annuity, providing for monthly pension of the subscriber and the balance is paid as lump sum to the subscriber.
b. In case the total corpus in the account is less than Rs. 1 Lakhs as on the Date of Retirement/Date of attaining 60 years of age, the Subscriber can avail the option of complete Withdrawal.
2. Upon Death –
The entire accumulated pension wealth (100%) would be paid to the nominee/legal heir of the Subscriber and there would not be any purchase of annuity/monthly pension.
3. Exit from NPS Before the age of Normal Superannuation –
a. At least 80% of the accumulated pension wealth of the Subscriber should be utilized for purchase of an annuity providing the monthly pension of the subscriber and the balance amount is paid in a lump sum form to the subscriber.
b. In case the total corpus in the account is less than Rs 1 Lakh as on the Date of Resignation/Date of Exit the Subscriber can avail the option of complete Withdrawal.
As per regulation 5(b) of PFRDA (Exit & Withdrawal from NPS) Regulation 2015, subscriber can exit from the NPS if the subscriber having subscribed to the national pension system for at least a minimum period of twenty five years.