Subscribers who have joined NPS between 18-60 years
Category
Normal exit
(On attaining 60 years of age or beyond or on attaining the age of Superannuation)
Limit for withdrawal of entire corpus as lump sum
₹ 5.00 Lakh on the date of initiation of the normal exit request
Government Sector
Normal Exit applicable in case of:-
- Attaining the age of superannuation as prescribed by the service rules applicable to the subscriber
- If the employer certifies that the subscriber has been discharged from the services of the concerned office on account of invalidation or disability or pre-mature retirement as per the applicable service rules.
Further in case of a Central Government employee, if the subscriber is discharged from service on the following grounds, as prescribed under CCS NPS Rules 2021:-
- Completion of twenty years’ regular service.
- Benefits on retirement under Rule 56 of fundamental rules or under the special voluntary retirement Scheme.
- Entitlement on retirement on invalidation.
- Entitlement on boarding out from service on account of disablement.
- Absorption in or under a Corporation or Company or Body wholly or substantially owned or controlled or financed by the Central Government or a State Government, if the National Pension System does not exist in the new organization
What is Normal Exit?
- If the corpus on the date of initiation of the normal exit request is equal to or less than ₹ 5.00 lakh, entire corpus can be withdrawn as lump sum.
- If the corpus on the date of initiation of the normal exit request is higher than ₹ 5.00 lakh, at least 40% of the corpus has to be mandatorily utilized for purchase of Annuity providing periodical pension to the Subscriber. The balance corpus after utilization for purchase of annuity is payable as lump sum to the Subscriber.
Non - Government Sector
Normal Exit applicable in case of Corporate subscribers on attaining the age of superannuation and for UOS subscribers (POP/eNPS) on attaining 60 years of age.
What is Normal Exit?
- If the corpus on the date of initiation of the normal exit request is equal to or less than ₹ 5.00 lakh, entire corpus can be withdrawn as lump sum.
- If the corpus on the date of initiation of the normal exit request is higher than ₹ 5.00 lakh, at least 40% of the corpus has to be mandatorily utilized for purchase of Annuity providing periodical pension to the Subscriber. The balance corpus after utilization for purchase of annuity is payable as lump sum to the Subscriber.
Subscribers who have joined NPS after 60 years
Category
Normal exit
(Exit after completion of 3 years under NPS)
Limit for withdrawal of entire corpus as lump sum
₹ 5.00 Lakh on the date of initiation of the normal exit request
Non-Government Sector
- If the corpus on the date of initiation of the normal exit request is equal to or less than ₹ 5.00 lakh, entire corpus can be withdrawn as lump sum.
- If the corpus on the date of initiation of the normal exit request is higher than ₹ 5.00 lakh, at least 40% of the corpus has to be mandatorily utilized for purchase of Annuity providing periodical pension to the Subscriber. The balance corpus after utilization for purchase of annuity is payable as lump sum to the Subscriber.
For any query or assistance on Exit & Withdrawal, please contact us at dept-exit@npstrust.org.in