In its circular released Wednesday, the PFRDA has allowed early leavers from the NPS scheme to again join the scheme. As per the current schema, subscribers can pre-exit the scheme before the account matures when they attain 60 years of age, nonetheless in this situation 80% corpus is converted into an annuity for receiving regular pension and the remaining can be withdrawn as lump-sum.
But under the new provision, NPS subscribers who had opted for early exit from the scheme have been given a second opportunity to rejoin the scheme.
How subscribers of NPS who exit prematurely can rejoin as per the latest ruling?
This can be done in two ways:
1. By re-depositing the withdrawn amount: Withdrawn 20% NPS corpus has to be deposited back under the existing PRAN in a single installment. The facility can be used once in a lifetime.
2. By opening a fresh Permanent Retirement Account Number (PRAN): In the second option the subscribers who have opted for pre-mature exit can opt for an annuity and complete the withdrawal process. And then they can open a new NPS account with a fresh PRAN.
The flexibility has been offered after the regulator received lot many request from subscribers who have withdrawn the lump sum (i.e. their 20% NPS balance) but have not availed the annuity yet to be able to rejoin the NPS again.