National pension Management (NPS) is a retirement savings and Investment Scheme launched by the government to provide security to the citizens of India according to their age. It provides a convenient way to efficiently manage your long-term savings with a safe, regulated market-based return.

According to the PFRDA website, the broad objectives of investing in NPS are as follows:

• provide a retirement income
• Long-term, fair market-based returns
• Providing old age security to all citizens
• NPS Withdrawal Requirements vary and are specified differently for different types of citizens.

According to the website, these are the rules for government and corporate employees on retirement from NPS:

• One needs to invest a minimum of 40% of the accumulated corpus in the annuity while enjoying the option to withdraw the balance amount in a lump sum
• The individual has the option to defer the lump sum withdrawal till he reaches the age of 70
• If the accumulated pension is less than Rs 2 lakh, the individual is at liberty to withdraw the entire amount

NPS Withdrawal Rules for Government Employees Taking Voluntary Retirement:

• One has to invest a minimum of 80% amount in an annuity
• If the accumulated pension is less than Rs 1 lakh, the individual is at liberty to withdraw the entire amount

NPS Withdrawal Rules in case of Death of Government and Corporate Employee:

• In case of death of a Government servant before the age of retirement, the entire amount is handed over to the nominee/legal heir.

NPS Withdrawal Rules for Corporate Employees and Citizens on Voluntary Exit:

• The individual should remain invested in his account for 10 years
• 80% of the amount should be used to buy annuity
• If the accumulated amount is less than Rs 1 lakh, then withdrawal of the entire amount is allowed

As per the NPS website, here are the important frequently asked questions related to withdrawal.

1 Where can I find withdrawal forms? What are the Different Types of Withdrawal Forms?

You can find the Withdrawal Form of the respective area from the “Forms” section available on this website. Based on the different types of withdrawal requests, the following forms are made available:

• pension
• untimely
• Death

2. How can I initiate a withdrawal request in the CRA system?

Subscribers can initiate online withdrawal request through their NPS account login. Such request needs to be verified and authorized by the concerned POP. In case the subscriber is not able to initiate the online withdrawal request, he/she has to submit the physical withdrawal form along with the required documents to the POP. Based on the request of the subscriber, the POP will initiate an online withdrawal request on behalf of the subscriber.

For details of the steps to be followed, you may visit the “Self Running Demo” of “Withdrawal Process for Non-Govt Subscribers” available in the “Knowledge Center” section under “Subscriber Corner” on this website.

3 Can I withdraw some amount during my tenure in NPS and still remain a subscriber in my NPS account?

Yes, NPS subscriber can withdraw some amount from his contribution. For partial withdrawal conditions, it is treated as partial withdrawal under NPS.

4 How does the subscriber/claimant receive the withdrawal amount?

The withdrawal amount is credited to the subscriber/claimer bank account (as per the bank details provided at the time of initiating the online withdrawal request) through electronic mode only.

5 How can the subscriber check the status of the withdrawal request?

Subscriber can check the withdrawal status as per the option given below:

• Subscribers can check through ‘Limited Access View’ (Pre-Login) functionality available on the home page of CRA website (www.cra-nsdl.com).
• Subscribers can check the status through the login of their NPS account under the menu ‘Withdrawal Request’ >> ‘View Withdrawal Request Status’.

6 Can the subscriber withdraw the lump sum amount in a phased manner?

Phased withdrawal facility is available for NPS subscribers. The subscriber can choose to withdraw the lump sum amount in a phased manner (up to 10 instalments) over a period of 60 years (or any other retirement age prescribed by the employer) to 75 years. However, the subscriber has to buy the annuity before the phased withdrawal.

7 What will happen to my Tier II contribution in case of closure of Tier I account?

Your Tier II account will also be closed if you request for closure of Tier I account. Units will be redeemed under Tier II account and the amount will be transferred to your given bank account.

8 Can I claim 100% withdrawal in case of retirement and premature exit?

Yes, the subscriber can claim withdrawal in the following cases:

• In case of superannuation- a subscriber can claim 100% withdrawal if the total accumulated amount is less than or equal to Rs. 5 lakh at the time of retirement / attaining the age of 60 years.
• In case of premature exit- if the total accumulated amount is less than or equal to Rs. 2.5 lakhs, the subscriber can avail the option of full withdrawal. However, you can exit NPS only after completion of 5 years.