EXIT / WITHDRAWAL GUIDELINES UNDER THE NATIONAL PENSION SYSTEM
The following modes are prescribed for exiting the New Pension System in case of Government Employee subscribers:-
1.Upon Normal Superannuation: On attaining the age of superannuation, at least 40% of the accumulated pension wealth should be utilized for purchase of an annuity providing for monthly pension in the PFRDA empanelled Annuity Service Provider as per terms and conditions of the Annuity Scheme chosen by the Subscriber in his “With Drawal Form” prescribed (Form.101-GS). The balance is paid in lump sum or by deferred payment mode as chosen by the subscriber. For this the subscriber (retired employee) need to submit the following forms duly filled in through the Drawing and Disbursing Officer concerned and the Treasury Officer.
2.Form 101-GS – Withdrawal Form for Claim of Accumulated Pension Wealth on Superannuation for Government Employees.
Annexure for Nomination Details:
Form 101-GS – in case of single nominee.
Form 101-GS-N1 – in case of multiple nominees.
Upon Death: In case of death before superannuation the entire accumulated pension wealth (100%) is paid to the nominee / legal heir of the subscriber. The legal heir needs to submit the following withdrawal form duly filled in along with prescribed Certificates from the competent authority through the Drawing and Disbursing Officer and the Treasury Officer concerned:-
Form 103-GD – Withdrawal of Accumulated Pension Wealth by Claimant due to the death of the subscriber.
Exit from NPS before the age of Normal superannuation (irrespective of cause): In this case, the subscriber should utilize at least 80% of the accumulated pension wealth for purchase of annuity from the PFRDA empanelled Annuity Service Provider as per terms and conditions of the Annuity Scheme chosen by the Subscriber in his “With Drawal Form” prescribed (Form.102-GP). The balance is paid in lump sum or by deferred payment mode as chosen by the subscriber. For this the subscriber need to submit the following forms duly filled in through the Drawing and Disbursing Officer concerned and the Treasury Officer:-
1.Form 102-GP – Withdrawal Form for Claim of Accumulated Pension Wealth on Exiting before the age of normal Superannuation for Government Employees.
Annexure for Nomination Details:-
Form 102-GP – in case of single nominee.
Form 401-AN – in case of multiple nominees.
Mode of Deferred Payment:
A subscriber on superannuation or premature exit has an option to defer withdrawal of lump-sum amount payable (40% in case of superannuation and 20% in case of premature exit) till he attains the age of 70 years. He has choice to withdraw the accumulated amount at any time before that by submitting a withdrawal request. The amount will be credited automatically to the bank account upon attaining age of 70 years. Till then the amount continues to be invested with the Pension Fund Managers.
Option to withdraw accumulated Pension Wealth ≤
The NPS provides for withdrawal of the entire accumulate Pension Wealth, in case it is less than or equal to.2,00,000/- as on the date of superannuation. The subscriber has to submit the prescribed form viz., Form.101-GS duly filled in along with a specific request in a form prescribed.
Purchase of Annuity:
The NPS provides for purchase of annuity
by a subscriber on his superannuation or premature exit by utilizing a proportion of the accumulated Pension Wealth from the empanelled Annuity Service providers. It is at least 40% on superannuation or 80% on pre-mature exit. However, it is exempted in case of accumulated Pension Wealth equal to or less than `.2,00,000/- at the time of superannuation. The PFRDA has empanelled the following service providers as of now:-
Life Insurance Corporation of India,
SBI Life Insurance Co. Ltd.,
ICICI Prudential Life Insurance Co. Ltd.,
HDFC Standard Life Insurance Co. Ltd.,
Bajaj Allianz Life Insurance Co. Ltd.,
Reliance Life Insurance Co. Ltd., and
Star Union Dai-ichi Life Insurance Co. Ltd.
The subscriber can choose the scheme and the annuity provider according to his choice at the time his withdrawal request. The NPS also provides for the following default option in the interest of subscribers to avoid delay in claim processing:-
Default Annuity Service Provider: Life Insurance Corporation of India.
Default Annuity Scheme: Annuity for life with a provision of 100% of the annuity payable to spouse during his / her life on death of annuitant. Payment of monthly annuity ceases on the death of the annuitant and the spouse.
If the corpus is not adequate to buy default annuity variant, the subscriber has to compulsorily choose Annuity Service Provider which offers it at the available corpus.
Procedure for withdrawal:
The subscriber or the claimant, in case of death has to submit a withdrawal application in a proforma prescribed for the respective purpose to the CRA through the Drawing and Disbursing Officer and the Treasury Officer / PAO concerned. The CRA processes such requests as per the scheme procedures and authorizes the payment for crediting to bank account of the subscriber / claimant.
Download GO.No.62 Details from here