The Pension Fund Regulatory and Development Authority (PFRDA) has relaxed the norms per se partial withdrawal to allow its subscribers to withdraw a maximum of 25% of their own contribution anytime before the final exit from the pension scheme. The relaxation has been brought about to enable the subscriber meet some of the unforeseen or big ticket expenses to an extent.
Here are the complete details including the purpose, frequency and conditions under which the pension regulator will entertain your partial withdrawal request.
Limitations in respect of withdrawal and withdrawal ceiling in NPS account
To be eligible for making partial withdrawals there is a pre-condition imposed which states that you as a subscriber of the pension scheme need to be making contributions in the scheme for 3 continuous years.
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The mandatory tier I account that the contributor subscribes to is a limiting account as it restricts withdrawal from it unless and until the subscriber reaches 60 years of age. This is to some degree relaxed through this provision which provides for critical illness, child's marriage or higher education and purchase of a residential premise.
The specified illnesses for which partial withdrawal from the NPS account is allowed includes cancer, kidney failure, multiple sclerosis, pulmonary arterial hypertension, major organ transplant, bypass graft, aorta graft or heart valve surgery, stroke, coma, myocardial infarction, blindness, paralysis.
Frequency of withdrawal allowed: At a maximum of 3 times the withdrawal request can be made during the course of the NPS scheme with no further relaxation.