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Tuesday, March 19, 2013

Good News to those who are entitled for NEW PENSION SCHEME (NPS)

The Pension Fund Regulatory and Development Authority (PFRDA) has allowed investors in the New Pension Scheme (NPS) to opt for ‘deferred withdrawal’ of their money at the time of exit, as against the current practice of ‘phased withdrawal’.

The subscribers would be given a specific option to defer or time the entire lump sum withdrawal (maximum 60 per cent) at the time of exit from NPS.

This would be a better option than forcing subscribers to choose a certain percentage each and every year while opting for the ‘phased withdrawal’ option, including the year in which they are exiting the system.

The subscriber can withdraw the deferred lump sum amount at any time before attaining the age of 70 years by giving a withdrawal application or notice.

If no such notice is given, the accumulated pension wealth would be automatically monetised and credited to his/ her bank account upon attaining the age of 70 years.

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