In January 2021, Pension regulator had allowed National Pension Scheme (NPS) subscriber to appeal for partial withdrawal online via self- declaration due to the spread of the Covid-19 pandemic, After the lessening of Pandemic- related issues, Pension Fund Regulatory and Development Authority (PFRDA) has informed that the partial withdrawal online advantage from NPS via self- declaration will not be available for public sector subscribers, beginning from 1 st January, 2023.
The given list adds subscribers from the public sector, state government and central government and central autonomous sector. After the lessening of the Covid-19 related- issues and relief of lockdown restriction, the new change considered after taking into contemplation of the earlier rule, conditions and law, this has been concluded to make it obligatory for all the public sector subscribers to submit their appeals to via their related nodal offices, PFRDA informed in a report issued on 23 rd December, 2022.
In the year 2021, PFRDA has issued a circular, where it permitted partial withdrawal online under NPS via self- declaration for the convenience of subscribers as an exceptional dispensation to deal with the pandemic concerning the protection of subscriber’s interest and lessen the load of nodal officers including POPs (Post Office Protocol) from confirmation and accreditation.
The rule has benefited the subscribers during the pandemic and problems caused due to lockdowns in several states of the country to control the spread of corona. Changed rule will come into effect from new- year.
NPS partial withdrawal rule will come into effect from 1st January, 2023.
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These are the conditions for Partial Withdrawal
- The subscriber need to be in NPS for a minimum period of 3 years.
- The withdrawal amount should not be more than twenty- five percent of the given contributions.
- According to PFRDA a maximum of three withdrawals is permitted during the whole duration of the subscription.
- The subscriber of NPS can only withdraw the amount after mentioning the specified reasons such as-
1. Higher education of children
2. Marriage of children
3. Buying a house (in certain conditions)
4. For medical treatment
Also note that Non- government NPS subscribers can still continue to enjoy this advantage.
