PFRDA NPS CPS 25 Percent Partial Withdrawal Guidelines

PFRDA NPS CPS 25 Percent Partial Withdrawal Guidelines. The PFRDA has allowed 25% "Partial Withdrawal" from NPS/ CPS Accounts and issued the "Premature Withdrawal Guidelines" and Rules. Often CPS/NPS holders are searching for "PFRDA 25 Percent Partial Withdrawal from NPS/ CPS Guidelines, 25% Partial Widthdrawal from CPS, Contributory Pension Scheme Premature withdrawal, CPS Loan Guidelines, CPS Part final withdrawal, CPS Loan Guidelines as issued by PFRDA". Hence we apteachers.in here present the detailed guidelines issued by PFRDA. Note that State Govt have to issue separate orders for implementation of these orders for CPS Holders.
PFRDA NPS CPS 25 Percent Partial Withdrawal Guidelines

PFRDA 25 Percent Partial Withdrawal from NPS/ CPS Guidelines

The Chapter-III, Section IV, of the PFRDA Act published on May 11th 2015 is as follows:

  1. Conditions of withdrawals under National Pension System.- The National Pension System Trust or the central record keeping agency acting on behalf of the National Pension System Trust or any other entity authorized by the Authority for the purpose , may on receipt of an application for withdrawal from a subscriber in the specified form and subject to fulfillment of conditions so specified may allow withdrawal from the National Pension System in the mode and manner permitted under these regulations, guidelines, circulars, orders or notifications issued by the Authority from time to time: Provided that the subscriber shall be required to submit the application form for withdrawal, specified for the purpose, along with documents, so specified and comply with the requirements contained in the operational guidelines issued by the Authority with respect to the permissible withdrawals under the National Pension System
The following withdrawals shall be permitted under National Pension System.- 
(1) A partial withdrawal of accumulated pension wealth of the subscriber, not exceeding twenty-five per cent. of the contributions made by the subscriber and excluding contribution made by employer, if any, at any time before exit from National Pension System subject to the terms and conditions, purpose, frequency and limits specified below:-

(A) Purpose of NPS Partial Withdrawal: 

A subscriber on the date of submission of the withdrawal form, shall be permitted to withdraw not exceeding twenty-five percent of the contributions made by such subscriber to his individual pension account, for any of the following purposes only:-
  • (a) for Higher education of his or her children including a legally adopted child 
  • (b) for the marriage of his or her children, including a legally adopted child; 
  • (c) for the purchase or construction of a residential house or flat in his or her own name or in a joint name with his or her legally wedded spouse. 
  • In case, the subscriber already owns either individually or in the joint name a residential house or flat,other than ancestral property, no withdrawal under these regulations shall be permitted; 
  • (d) for treatment of specified illnesses: if the subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents suffer from any specified illness, which shall comprise of hospitalization and treatment in respect of the following diseases: 
  • (i) Cancer; 
  • (ii) Kidney Failure (End Stage Renal Failure); 
  • (iii) Primary Pulmonary Arterial Hypertension; (iv) Multiple Sclerosis; 
  • (v) Major Organ Transplant; 
  • (vi) Coronary Artery Bypass Graft; (vii) Aorta Graft Surgery; 
  • (viii) Heart Valve Surgery; 
  • (ix) Stroke; 
  • (x) Myocardial Infarction 
  • (xi) Coma; 
  • (xii) Total blindness;
  • (xiii) Paralysis; 
  • (xiv) Accident of serious/ life threatening nature. 
  • (xv) any other critical illness of a life threatening nature as stipulated in the circulars, guidelines or notifications issued by the Authority from time to time.

(B) Limits of CPS Partial Withdrawal: 

The permitted withdrawal shall be allowed only if the following eligibility criteria and limit for availing the benefit are complied with by the subscriber:-
  • (a) the subscriber shall have been in the National Pension System at least for a period of last ten years from the date of his or her joining; 
  • (b) the subscriber shall be permitted to withdraw accumulations not exceeding twenty-five per cent of the contributions made by him or her and standing to his or her credit in his or her individual pension account, as on the date of application for withdrawal; 

(C ) Frequency of CPS/NPS Partial Withdrawal

The subscriber shall be allowed to withdraw only a maximum of three times during the entire tenure of subscription under the National Pension System and not less than a period of five years shall have elapsed from the last date of each of such withdrawal.
The mandatory requirement of five years having elapsed between two withdrawals shall not apply in case of “treatment for specified illnesses or in case of withdrawal arising out of exit from National Pension System due to the death of the subscriber. The request for withdrawal in the specified form, shall be submitted by the subscriber, along with relevant documents to the central record keeping agency or the National Pension System Trust, as may be specified, for processing of such withdrawal claim. Provided that where a subscriber is suffering from any illness, specified in sub-clause (d), the request for withdrawal may be submitted, through any family member of such subscriber.
  1. (2) A subscriber having a valid and active Tier-II account of the Permanent Retirement Account can withdraw the accumulated wealth either in full or part, at any time by applying for such withdrawal, on such application form and in such mode and manner, as may be specified by the Authority in this behalf. There shall be no limit on such withdrawals till the account has sufficient amount of accumulated pension wealth to take care of the applicable charges and the withdrawal amount: 
  2. Provided that the Tier-II account shall stand automatically closed at the time of exit of the subscriber from the National Pension System, even if an application so specified for the purpose has not been received from the subscriber, and the accumulated wealth in such account shall be transferred to the bank account provided by the subscriber, while submitting his application for exit from the National Pension System.
Withdrawal process.- 
(1) The National Pension System Trust or any other intermediary or entity authorized by the Authority for the said purpose shall be responsible for processing and authorizing approving the withdrawal and exit claims lodged by the subscriber in accordance with the provisions of the Act, these regulations, directions, guidelines issued by the Authority and the Pension Fund Regulatory and Development Authority (National Pension System Trust) Regulations, 2015, where applicable. The National Pension System Trust shall frame suitable operational processes or guidelines for facilitating withdrawals and Exit of subscribers from National Pension System.

Note:These are the Guidelines Issued by PFRDA for NPS 25% Partial Withdrawal. State Govt CPS Holders have to wait for specific orders to be issued by Govt.

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