CPS New Withdrawal & Exit Guidelines 2026 based on Corpus Amount Size [Explained]. Cir. Memo. No. F2/3058/2013 Dated 02-03-2026. National Pension System - PFRDA’s (Exit and Withdrawals under the National Pension System) (Amendment) Regulations, 2025 – Instructions to all stake holders in the State – for taking necessary action – Reg
![CPS New Withdrawal & Exit Guidelines 2026 based on Corpus Amount Size [Explained] for Govt Employees](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnQssk2aDpt9wecCIfbTTS0LiNKK2DWTZrd4Qpmi1xdoQyvB2auJL-a1MPFZNYYTuOmxD8h-kUPElTlAM2QjwKBW4G7bs1RW95WjKTF4BJ1-6xceeM9xIH-jAoGLZJM8-uMF7A_oqRKh68o7nT_XeXtKu7K3oByNiV17xwSkZsJYoMorY73d6XP9HLG0I/s16000/CPS%20New%20Withdrawal%20&%20Exit%20Guidelines%202026%20based%20on%20Corpus%20Amount%20Size%20%5BExplained%5D%20for%20Govt%20Employees.jpg "CPS New Withdrawal & Exit Guidelines 2026 based on Corpus Amount Size [Explained] for Govt Employees")
Sub: National Pension System - PFRDA’s (Exit and Withdrawals under the National Pension System) (Amendment) Regulations, 2025 – Instructions to all stake holders in the State – for taking necessary action – Reg
Read:
The attention of all Treasury Officers/PAOs in the State is invited to the subject captioned and references cited. This office vide reference 5th cited have issued certain instructions for processing withdrawal claims under the National Pension System as per PFRDA's (Exit and Withdrawals) Regulations-2021.
Further, vide reference 6th cited, the PFRDA authorities have amended withdrawal limits under the National Pension System. The key points in respect of Government sector subscribers are communicated below for strict compliance;
(i) If the total accumulated wealth is less than or equal to eight lakh, the subscriber shall have the option to withdraw the entire accumulated pension wealth in lump sum or avail periodic payouts in the form of systematic lump sum withdrawal in accordance with other options approved by the PFRDA.
(ii) If the total accumulated wealth is more than eight lakh rupees but does not exceed twelve lakh rupees, the subscriber shall have the option to withdraw an amount not exceeding rupees six lakh as lump sum or avail periodic payouts in the form of systematic lump sum withdrawal in accordance with other options approved by the PFRDA, and the balance of the accumulated pension wealth shall be utilized to avail periodic payouts in the form of systematic unit redemption for at least six years or annuity or other options as may be approved by the PFRDA.
Provided that a subscriber may defer purchase of annuity or withdrawal of lump sum amount till the age of eighty-five years by submitting a request to the Treasury officer / PAO, for this purpose and during such period the subscriber shall have an option to exit at any time.
Further provided that where a subscriber, having deferred the purchase of annuity, dies before such annuity purchase, the default annuity shall mandatorily be purchased by family member(s) in the sequence specified for the default annuity.
Provided further that where a subscriber, having deferred the withdrawal of lump sum amount, dies before such lump sum withdrawal, the said amount shall be paid to the nominee(s) or the legal heir(s), as the case may be
ii). If the accumulated pension wealth of the subscriber is equal to or less than rupees five lakh, such subscriber shall have the option to withdraw the entire accumulated pension wealth in lump sum or avail periodic payouts in the form of systematic lump sum withdrawal or systematic unit redemption or in accordance with other options approved by the PFRDA.
redemption or in accordance with other options approved by the PFRDA, to the nominee(s) or legal heir(s), as the case may be, of such subscriber.
i). If the total accumulated wealth does not exceed eight lakh rupees, the nominee(s) or legal heir(s) shall have the option to withdraw the entire accumulated pension wealth in lump sum or avail periodic payouts in the form of systematic lump sum withdrawal or systematic unit redemption or in accordance with other options approved by the Authority;
(ii) If the total accumulated wealth is more than eight lakh rupees but does not exceed twelve lakh rupees, the nominee(s) or legal heir(s), as the case may be, shall have the option to withdraw an amount not exceeding six lakh rupees as lump sum or avail periodic payouts in the form of systematic lump sum withdrawal or systematic unit redemption or in accordance with other options approved by the Authority, and the balance of the accumulated pension wealth shall be utilized to avail periodic payouts in the form of systematic unit redemption for at least six years or annuity or other options as may be approved by the PFRDA.
The new limits for different types of withdrawals as per the exit guidelines are tabulated below for your reference.
They are therefore informed that, the above said withdrawal eligibility limits
are made functional from 01/01/2026 in Protean-CRA system.
The Government has updated NPS withdrawal rules from January 2026. Learn the new lump sum limits, annuity rules, and exit options for retirement, resignation, and death cases under the National Pension System. New NPS Withdrawal Rules 2026 Explained – Lump Sum and Pension Limits for Government Employees
NPS Exit Rules 2026: New Withdrawal Limits After Retirement, Resignation and Death. Latest NPS Withdrawal Rules 2026 – Complete Guide for Government Employees. NPS Pension Withdrawal Rules Updated in 2026 – Key Changes You Should Know![CPS New Withdrawal & Exit Guidelines 2026 based on Corpus Amount Size [Explained] for Govt Employees](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnQssk2aDpt9wecCIfbTTS0LiNKK2DWTZrd4Qpmi1xdoQyvB2auJL-a1MPFZNYYTuOmxD8h-kUPElTlAM2QjwKBW4G7bs1RW95WjKTF4BJ1-6xceeM9xIH-jAoGLZJM8-uMF7A_oqRKh68o7nT_XeXtKu7K3oByNiV17xwSkZsJYoMorY73d6XP9HLG0I/s720/CPS%20New%20Withdrawal%20&%20Exit%20Guidelines%202026%20based%20on%20Corpus%20Amount%20Size%20%5BExplained%5D%20for%20Govt%20Employees.jpg "CPS New Withdrawal & Exit Guidelines 2026 based on Corpus Amount Size [Explained] for Govt Employees")
CPS New Withdrawal & Exit Guidelines 2026 based on Corpus Amount Size [Explained]
Circular Memo dated 02-03-2026 from the Director of Treasuries and Accounts, Andhra Pradesh, communicating updated withdrawal rules under the National Pension System (NPS) as amended by PFRDA on 12.12.2025, effective from 01-01-2026.
Sub: National Pension System - PFRDA’s (Exit and Withdrawals under the National Pension System) (Amendment) Regulations, 2025 – Instructions to all stake holders in the State – for taking necessary action – Reg
Read:
- 1). GO Ms. No. 62, Dated 07/03/2014 of Finance (Pen.I) Department.
- 2). PFRDA’s Gazette Notification published on 11.05.2015.
- 3). This Office Circular Memo Even No., Dated 04.04.2016
- 4). PFRDA’s Gazette Notification published on 14.06.2021.
- 5). Cir. Memo. No. D4/3058/2013, Dated 27/01/2021.
- 6 ) PFRDA’s (Exit and Withdrawals under the National Pension System) (Amendment) Regulations, 2025, Dated 12.12.2025.
The attention of all Treasury Officers/PAOs in the State is invited to the subject captioned and references cited. This office vide reference 5th cited have issued certain instructions for processing withdrawal claims under the National Pension System as per PFRDA's (Exit and Withdrawals) Regulations-2021.
Further, vide reference 6th cited, the PFRDA authorities have amended withdrawal limits under the National Pension System. The key points in respect of Government sector subscribers are communicated below for strict compliance;
Upon Superannuation:
The Government subscriber upon attaining the age of superannuation or retirement as prescribed by the service rules applicable, shall continue to remain within the National Pension System till the age of eighty-five years until the choice of exit is exercised, whereupon at least forty per cent of the accumulated pension wealth shall be utilized for purchase of default annuity providing for a monthly or any other periodical pension, as opted by the subscriber, and the balance of the accumulated pension wealth shall be paid to the subscriber in lump sum or through periodic payouts in the form of systematic lump sum withdrawal or systematic unit redemption or in accordance with other options approved by the PFRDA.(i) If the total accumulated wealth is less than or equal to eight lakh, the subscriber shall have the option to withdraw the entire accumulated pension wealth in lump sum or avail periodic payouts in the form of systematic lump sum withdrawal in accordance with other options approved by the PFRDA.
(ii) If the total accumulated wealth is more than eight lakh rupees but does not exceed twelve lakh rupees, the subscriber shall have the option to withdraw an amount not exceeding rupees six lakh as lump sum or avail periodic payouts in the form of systematic lump sum withdrawal in accordance with other options approved by the PFRDA, and the balance of the accumulated pension wealth shall be utilized to avail periodic payouts in the form of systematic unit redemption for at least six years or annuity or other options as may be approved by the PFRDA.
Provided that a subscriber may defer purchase of annuity or withdrawal of lump sum amount till the age of eighty-five years by submitting a request to the Treasury officer / PAO, for this purpose and during such period the subscriber shall have an option to exit at any time.
Further provided that where a subscriber, having deferred the purchase of annuity, dies before such annuity purchase, the default annuity shall mandatorily be purchased by family member(s) in the sequence specified for the default annuity.
Provided further that where a subscriber, having deferred the withdrawal of lump sum amount, dies before such lump sum withdrawal, the said amount shall be paid to the nominee(s) or the legal heir(s), as the case may be
Premature Exit:
i). If the Government subscriber resigned/dismissed/removed from service, he/she may voluntarily close individual pension account, whereupon at least eighty per cent of the accumulated pension wealth shall mandatorily be utilized for purchase of a default annuity or any other annuity made available by the annuity service providers empanelled by the PFRDA and t he balance of the accumulated pension wealth shall be paid to the subscriber in lump sum or through periodic payouts in the form of systematic lump sum withdrawal or systematic unit redemption or in accordance with other options approved by the PFRDA.ii). If the accumulated pension wealth of the subscriber is equal to or less than rupees five lakh, such subscriber shall have the option to withdraw the entire accumulated pension wealth in lump sum or avail periodic payouts in the form of systematic lump sum withdrawal or systematic unit redemption or in accordance with other options approved by the PFRDA.
Upon Death:
If the Government subscriber dies before attaining the age of superannuation then at least eighty percent of the accumulated pension wealth of the subscriber shall be mandatorily utilized for purchase of the default annuity and balance of the accumulated pension wealth shall be paid as lump sum or through periodic payouts in the form of systematic lump sum withdrawal or systematic unitredemption or in accordance with other options approved by the PFRDA, to the nominee(s) or legal heir(s), as the case may be, of such subscriber.
i). If the total accumulated wealth does not exceed eight lakh rupees, the nominee(s) or legal heir(s) shall have the option to withdraw the entire accumulated pension wealth in lump sum or avail periodic payouts in the form of systematic lump sum withdrawal or systematic unit redemption or in accordance with other options approved by the Authority;
(ii) If the total accumulated wealth is more than eight lakh rupees but does not exceed twelve lakh rupees, the nominee(s) or legal heir(s), as the case may be, shall have the option to withdraw an amount not exceeding six lakh rupees as lump sum or avail periodic payouts in the form of systematic lump sum withdrawal or systematic unit redemption or in accordance with other options approved by the Authority, and the balance of the accumulated pension wealth shall be utilized to avail periodic payouts in the form of systematic unit redemption for at least six years or annuity or other options as may be approved by the PFRDA.
Invalidation / Compulsory Retirement:
Where the employer certifies that the subscriber has been discharged from the services on account of invalidation/disability or premature retirement (compulsory) as per the applicable service rules, the subscriber shall have the option to withdraw the entire accumulated pension wealth in lump sum or avail periodic payouts in the form of systematic lump sum withdrawal in accordance with other options approved by the PFRDA.The new limits for different types of withdrawals as per the exit guidelines are tabulated below for your reference.
| Accumulated Pension Wealth | Lump Sum Withdrawal | Annuity Requirement |
|---|---|---|
| Up to ₹8 lakh | 100% allowed | Not mandatory |
| ₹8–12 lakh | Max ₹6 lakh lump sum | Balance via annuity / structured withdrawal |
| Above ₹12 lakh | Max 60% lump sum | Minimum 40% annuity |
Detailed Explanation table for Government sector subscribers in CPS under New PFRDA Exit Rules 2025
| Exit Scenario / Event | Accumulated Pension Wealth (APW) at the time of exit (₹) | Utilization of Accumulated Pension Wealth (APW) | ||
| Lump Sum (Entire Lump Sum or systematic lump sum withdrawal or systematic unit redemption or as per other approved option) | Systematic Unit Redemption for at least six years | Annuity | ||
| Upon retirement as per regulation 3(1)(a) (or) Upon discharge from service as per regulation 3(1)(d) | ≤ 8 lakh | 100% | Not Applicable | Not Applicable |
| Or | ||||
| Up to 60% | Not Applicable | At least 40% | ||
| > 8 lakh ≤ 12 lakh | Up to ₹6 lakh | Balance of APW remaining after lump sum | Not Applicable | |
| Or | ||||
| Up to ₹6 lakh | Not Applicable | Balance of APW remaining after lump sum | ||
| Or | ||||
| Up to 60% | Not Applicable | At least 40% | ||
| > 12 lakh | Up to 60% | Not Applicable | At least 40% | |
| Upon resignation / removal from service as per regulation 3(1)(b) | ≤ 5 lakh | 100% | Not Applicable | Not Applicable |
| Or | ||||
| Up to 20% | Not Applicable | At least 80% | ||
| > 5 lakh | Up to 20% | Not Applicable | At least 80% | |
| Upon death as per regulation 3(1)(c) | ≤ 8 lakh | 100% | Not Applicable | Not Applicable |
| Or | ||||
| Up to 20% | Not Applicable | At least 80% | ||
| > 8 lakh ≤ 12 lakh | Up to ₹6 lakh | Balance of APW remaining after lump sum | Not Applicable | |
| Or | ||||
| Up to ₹6 lakh | Not Applicable | Balance of APW remaining after lump sum | ||
| Or | ||||
| Up to 20% | Not Applicable | At least 80% | ||
| > 12 lakh | Up to 20% | Not Applicable | At least 80% | |
Hence, all Treasury
officers in the state are instructed to go through the above guidelines while
processing the withdrawal requests of the subscribers. Copy of the reference 6th
cited is attached herewith for ready reference.
