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PFRDA Allows These Subscribers To Rejoin The NPS Scheme

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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in this situation 80% corpus is converted into an annuity for receiving regular pension and the remaining can be withdrawn as lump-sum.

PFRDA Allows These Subscribers To Rejoin The NPS Scheme
 

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 By re-depositing the withdrawn amount: Withdrawn 20% NPS corpus has to be deposited back under the existing PRAN in a single installment.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The flexibility has been offered after the regulator received lot many request from subscribers who have withdrawn the lump sum (i.e. their 20% NPS balance) but have not availed the annuity yet to be able to rejoin the NPS again.

GoodReturns.in

Read more about: nps pfrda
Story first published: Thursday, September 24, 2020, 14:57 [IST]
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