The Pension Fund Regulatory and Development Authority (PFRDA) has simplified the National Pension System (NPS) withdrawal guidelines by allowing NPS account users to withdraw their complete amassed pension fund if their accumulated value in the NPS account is Rs 5 lakh or less. The PFRDA implemented these modifications in accordance with the PFRDA Amendment Act, which was announced in the Gazette of India. According to the PFRDA Amendment Act, which was released in the Gazette of India, the subscriber shall have the option to withdraw the entire accumulated pension corpus without purchasing an annuity, if the subscriber's accumulated pension income in the account is equal to or less than an amount of Rs 5 lakh rupees, or a limit as stipulated by the Authority.
The PFRDA update further stated that in the event of an NPS subscriber's death, if the accumulated pension wealth is equal to or less than Rs 5 lakh, the nominee or legal successor (if any) will be able to withdraw the entire NPS balance without purchasing an annuity. The subscriber may withhold the purchase of an annuity for a maximum of three years from the date of fulfilment of 60 years of age or the age of superannuation and should notify the NPS or any intermediary or other entity authorized by the authority in writing of his or her purpose to do so at least fifteen days prior to the date of fulfilment of sixty years of age or the age of superannuation. According to the pension authority, the lump-sum premature withdrawal threshold for NPS has been increased to Rs 2.5 lakh from Rs 1 lakh. The regulator also increased the maximum age of entry into the National Pension System (NPS) from 65 to 70. The minimum age to exit has also been upped to 75 years.