PFRDA - Option to defer Annuity purchase under NPS at the time of exit…
CIRCULAR PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY PFRDA/ 2013/14/ PDEX /9 September 17, 2013 To, All Govt depts./PAO’s/DDO/ POP’s, CRA & other stakeholders Dear Sir/ Madam, Sub: Option to defer Annuity purchase under NPS at the time of exit As per the Exit guidelines of PFRDA for National Pension System (NPS) subscribers, a subscriber on attaining the Normal Retirement Age (applicable to Govt. sector subscribers) or upon attaining 60 years – is required to compulsorily annuitize at least 40% of your pension wealth and the remaining 60% can be withdrawn as a lump sum. Also, a subscriber wishing to exit from NPS before the normal retirement age or before attainment of 60 years is allowed to exit subject to the condition that a minimum of 80% of accumulated pension wealth needs to be mandatorily utilized for purchase of annuity that provides for the monthly pension to the subscriber. Presently, withdrawal of permissible lump sum withdrawal (60%) upon exit can be defe...