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Importance of Claim ID For Making NPS Withdrawal After 60 Years of Age

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When a subscriber of the National Pension System (NPS) reaches the age of 60, he or she is authorised to withdraw funds from the NPS corpus. An annuity worth at least 40% of the accrued pension must be purchased by the subscriber. The remaining payment is paid to the subscriber in one lump sum. A covering letter from the related POP Advance stamped receipt filled out by the subscriber and cross-signed on the revenue stamp, as well as authentic PRAN card KYC documents certified by POP are required for withdrawal. It's necessary to have a cancelled cheque or a bank certificate for the same. Six months before the retirement age, an exit claim ID is established. This number serves as a point of reference for processing withdrawal requests. Now let's know why claim ID is important for making NPS withdrawals.

 

Importance of Claim ID for making online claims
 

Importance of Claim ID for making online claims

  • Claim ID is required if the subscriber desires to file a withdrawal request in the online mode in case of Superannuation/Premature exit.
  • Claim ID will be issued six months prior to the date of superannuation or reaching the age of 60 for superannuating subscribers. For all such circumstances where a Claim ID has been generated, Nodal Offices will be able to initiate a withdrawal request in the CRA system.
  • If the subscriber initiates the withdrawal request, the Nodal Office shall authorise it in the CRA system.
  • In the event of an early or pre-mature exit, the Nodal Office must generate a Claim ID for the subscriber in order for them to file an online request.
  • Claim ID is not required if the Nodal Office initiates the withdrawal request on behalf of the subscriber.
  • If a subscriber attempts to issue a withdrawal request with a Claim ID that has not been generated, a notification will be displayed stating that the subscriber is not permitted to make any withdrawal requests.
  • Only once the Nodal Office generates the Claim ID, the subscriber can submit a withdrawal request in the CRA system.
  • The subscriber will be asked to validate the details entered. The request will be logged into the CRA system once it has been confirmed. On the successful filing of a withdrawal request, the CRA system will generate a Claim ID and an Acknowledgement Number.

How NRIs Can Open NPS Account Online?

Generation of Claim ID by Nodal Office

Generation of Claim ID by Nodal Office

For all subscribers who will retire in the next six months, CRA will issue and disseminate Claim IDs. The Nodal Office can record withdrawal requests owing to superannuation/exit at 60 years only using these Claim IDs. The Claim ID can be generated by the Nodal Office for a subscriber who has submitted premature exit or a subscriber who has expired and the claimant has requested withdrawal so that they can make the online request. The following is the procedure for the Nodal Office to generate a Claim ID:

  • By logging into the CRA System using the User ID and I-Pin, the Nodal Office can issue Claim ID for Superannuation, Premature Exit, and withdrawal requests for death cases.
  • When a user visits the CRA website, they should go to the ‘Exit Withdrawal Request' option and then to the ‘Initiate Generate/Cancel Claim ID' section.
  • In the specified field, the user will enter the subscriber's PRAN.
  • From the dropdown menu, the user will choose Death, Premature Exit, or Exit at 60/Superannuation as the withdrawal option or type.
  • The request will be submitted by a Nodal Office user, and an Acknowledgement Number will be issued.
Approval of request

Approval of request

  • Using a second User ID and I-Pin, another Nodal Office User will enter into the CRA system (www.cra-nsdl.com).
  • The user must choose the ‘Authorise Generate/Cancel Claim ID' option.
  • The ‘Claim ID', ‘Acknowledgement No.', or ‘PRAN and Date Range' will be required to enter by the user.
  • The user will authorise the request by clicking on the 'Acknowledgement No.' After authorising the request, a Claim ID will be issued for the PRAN.

Exit options from NPS at the time of superannuation or at the age of 60

Subscribers have the option of stay invested in NPS for up to 70 years or exiting NPS. At the time of superannuation or at the age of 60, subscribers of NPS have the following options:

Continuation of account and stay invested: Subscribers can continue to contribute to their NPS account until they reach the age of 70 and receive a tax benefit on their contributions.

Suspension of withdrawal: Up to the age of 70, a subscriber can postpone his or her withdrawal and remain invested in NPS. Subscribers can choose to delay only lump-sum withdrawals, annuity, or both lump-sum withdrawal and annuity.

Can start receiving pension: Subscribers can exit NPS if they do not want to continue/defer their account. He or she can submit an exit request online and, will be allowed to start receiving pension if the NPS exit rules are followed.

Read more about: nps national pension system
Story first published: Monday, June 7, 2021, 12:19 [IST]
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