Systematic Lump sum Withdrawal (SLW) for NPS Subscribers : Provision of option of phased withdrawal of the lump sum at the time of exit – PFRDA Circular dated 27-10-2023

पेंशन निधि विनियामक एव विकास प्राधिकरण
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

Circular

Circular no: PFRDA/2023/30/SUP-CRA/10

27th Oct, 2023

To
All NPS Stake Holders

Subject: Facility of Systematic Lump sum Withdrawal (SLW) for NPS Subscribers

As per the existing exit guidelines, the subscribers post 60 years/superannuation can defer availing of annuity & withdrawing the lump sum on any combination till 75 years of age. The lump sum amount can be withdrawn in a single tranche or it can be withdrawn on an annual basis. If withdrawn annually, the Subscriber has to initiate the withdrawal request each time and authorized.

2. In accordance with Regulation 3 and Regulation 4 of PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015 and amendments therein, it is proposed to provide the option of phased withdrawal of the lump sum through Systematic Lump Sum Withdrawal (SLW) facility. The subscribers are allowed to withdraw up to 60% of their pension corpus, through the SLW on a periodical basis viz. monthly, quarterly, half-yearly or annually for a period till 75 years of age as per the choice at the time of their normal exit.

3. All Nodal offices, Points of Presence, NPST and Corporate can disseminate the information about SLW for the associated Subscribers who superannuate or reaching the age of 60 years and plan to exit from NPS. Central Record Keeping Agencies (CRAs) can publish FAQs and release educational podcasts on SLW, highlighting its benefits and explaining the process of initiating SLW on their websites and social media platforms.

This circular is issued in exercise of powers conferred under section 14 (1) of The Pension Fund Regulatory & Development Authority Act, 2013.

Digitally signed by
K MOHAN GANDHI
Chief General Manager