The Pension Fund Regulatory and Development Authority of India (PFRDA) has said that NPS or National Pension Scheme subscribers will now be allowed partial withdrawal for covering expenses related to treatment of coronavirus. “In view of the decision of the Government of India, which has declared COVID-19 as a pandemic, it has been decided to declare COVID-19 as a critical illness which is life threatening in nature,” the PFRDA said. Partial withdrawal will be allowed towards treatment of the illness of subscriber, his spouse, children, including a legally adopted child or dependent parents. The other rules for partial withdrawal from NPS remain the same.
1) The NPS subscribers can make partial withdrawal after three years from the date of joining the system under specific circumstances.
2) Partial withdrawal is allowed for expenses towards higher education/marriage of children, purchase/construction of residential house (in specified conditions) and treatment of critical illnesses.
3) The subscriber can make a partial withdrawal a maximum of three times during the entire tenure of subscription under NPS.
4) The maximum allowed limit for partial withdrawal is 25% of the contributions made by the subscriber as on the date of application for withdrawal.
5) Partial withdrawal request can be made online by the NPS subscriber. Alternatively, the subscriber can also submit physical partial withdrawal form along with documents to Point of Presence service providers, based on which POP can initiate online request. In case of making partial withdrawal towards treatment for coronavirus, “the Nodal Office/PoPs/Aggregators would ensure that the subscriber has provided the medical certificate and formal request for partial withdrawal,” the PFRDA said .