New NPS Withdrawal Rules That You Should Be Aware Of In FY24

The Pension Fund Regulatory and Development Authority (PFRDA) has mandated all subscribers to upload certain documents beginning April 1, 2023 for FY24 fiscal. The document s must be uploaded to Central Record-Keeping Agency (CRA) user interface before withdrawing the pension corpus as per the news report of Livemint.

The new withdrawal rules for the NPS will make annuity payments faster and simpler for subscribers exiting the NPS. As per the report, the decision of new rule is in the interest of subscribers and to benefit them with the timely payment of annuity income.

Under the old pension scheme, a government employee is entitled to a monthly pension after retirement. The monthly pension is typically half of the last drawn salary of the person, this was was discontinued in December 2003.

But later from April 1, 2004 as per new pension scheme, employees contribute a portion of their salaries to the pension fund. Based on that, they are entitled to a one-time lump sum amount on superannuation.

So, while exiting from the NPS scheme the following documents are required:
- NPS exit/withdrawal form

- Proof of identification and residence as stated in the withdrawal request
Bank account proof

- Copy of the Permanent Retirement Account Number (PRAN) card

As per the ministry records, currently there are 567,116 beneficiaries above the age of 60 years under the NPS.