Exposure Draft - Amendments to Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015

Exposure Draft - Amendments to Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015 Date: 16 September 2025 In exercise of its mandate to protect the interests of subscribers, the PFRDA proposes to amend the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015. The proposed amendments are aimed at expanding coverage of exit scenarios, easing out operational processes and providing greater flexibility/choice to subscribers in managing their pension wealth across different stages of their lifecycle in line with their evolving needs. The following are some of the key areas which are proposed for revision: a) Redrafting of definition of ‘Exit’ to cover various scenarios, including exit from NPS Vatsalya, schemes of Pension Funds being introduced for non- government sector. b) Stipulation of exit provisions in respect of schemes of Pension Funds being introduced for non-government sector. c) Increase in the age limit for entry into and exit from NPS, with automatic continuation. d) Removal of requirement for prior intimation by subscribers in case of deferment of lumpsum and/or annuity. e) Enhancement of permissible limit for lumpsum withdrawal by subscribers, where the accumulated pension wealth is below the specified threshold. f) Introduction of option to avail systematic unit redemption in cases where accumulated pension wealth is below the specified threshold. g) Enhancement of proportion of lumpsum withdrawal by non-government sector subscribers upon attaining age of 60 years/retirement. h) Removal of vesting period for normal exit in cases where individuals join NPS after 60 years of age. i) Enabling provision for subscribers to seek financial assistance from regulated financial institutions against their individual pension account. j) Revision of partial withdrawal limits, frequency and purpose and introduction of ant option to avail partial withdrawal post attaining the age of 60 years/retirement. k) Stipulation of Exit provisions in case of renunciation of citizenship. l) Stipulation of Exit provisions under NPS-Vatsalya. Page 1 of 322. The Exposure Draft containing the proposed amendments as placed at Annexure A is open for stakeholder consultation and the same can be accessed at PFRDA website at: “Regulatory Framework → Exposure Draft”. The comments/views/suggestions are invited on or before 17 October 2025. 3. Stakeholders can furnish their comments through the online webform accessible at www.pfrda.org.in . Alternatively, comments can also be furnished via email in the format provided below at review-reg@pfrda.org.in : Sl. Regulation No. Existing Regulation Proposed Changes to the Stakeholder Comments Rationale for suggestion Regulation 4. The existing Regulations notified by the PFRDA can be accessed on the PFRDA’s website under “Regulatory Framework → Compendium” Page 2 of 32Annexure - A Sl. Regulation Existing Regulation Proposed Changes to the Regulation Stakeholder Comments Rationale for No. suggestion 1 New - These regulations shall apply to all exits and withdrawals provision in respect of existing pension schemes (common schemes) under under Tier-I of the National Pension System prior to the Regulation notification of these amendments and to such other 1 pension schemes in Tier I (under sub-section 2 of section 20), hereafter approved by the Authority in respect of non- government subscribers, pursuant to these amendments. 2 Regulation “accumulated pension wealth” means the monetary “accumulated pension wealth” means the monetary value 2(1)(b) value of the pension investments accumulated in the of the pension investments accumulated in the individual Permanent Retirement Account of a subscriber under the pension account of a subscriber under the National National Pension System; Pension System; 3 Regulation (c) “aggregator” means an intermediary registered with deleted 2(1)(c) the Authority under sub-section (3) of section 27 of the Act, to perform subscriber interface functions under the National Pension System-Swavalamban and have the functional relationship with a known customer base for delivery of some socio-economic goods or services; 4 Regulation (k) “Exit” for the purpose of this regulation shall mean (k) “Exit” for the purpose of this regulation shall mean the 2(1)(k) closure of individual pension account of the subscriber following: under National Pension System, upon and on the date of (1) an exercise of choice by a subscriber to close his happening of any of the following events, as may be individual pension account or opt out of a pension scheme applicable: subsisting within the National Pension System, in the following instances: (i) a subscriber having superannuated/retired from (i) having superannuated or retired from employment as employment, as per the terms of such employment; per the terms of such employment or having attained sixty (ii) a subscriber having attained the age of sixty years, years of age, or any time thereafter; and where so specifically permitted has not exercised a (ii) where so approved by the Authority in respect of any choice in writing to continue to remain subscribed to particular scheme, having subscribed to such scheme for a such system, till such further period as is permissible, period of not less than fifteen years or such other higher with or without making contributions or in respect of a period in accordance with the scheme; subscriber who has joined National Pension System (iii) on attaining the age of eighteen years in case of NPS- after attaining the age of sixty years (but before attaining Vatsalya; seventy years of age) upon attaining the maximum age (iv) premature closure of an account or opting out of a permitted to be subscribed to such scheme or any date pension scheme by a subscriber in accordance with these regulations, other than in instances mentioned above; Page 3 of 32prior thereto, based on the specific request for closure (2) closure of individual pension account upon death of the received from subscriber; subscriber or the subscriber being missing and presumed (iii) death of the subscriber or the subscriber being dead as per the provisions of Bharatiya Sakshya missing and presumed dead as per Indian Evidence Act Adhiniyam, 2023. 1872 and amendments thereto, before attaining the age Provided further that where a subscriber has more than one of superannuation, or the age of sixty years, or in cases individual pension account the exit and closure of each where an option has been exercised by subscriber to individual pension account shall be in accordance with continue to remain subscribed to a certain permissible these Regulations. time period, death before expiry of such period or death of a subscriber who has joined National Pension System after attaining the age of sixty years (but before attaining seventy years of age) at any time prior to attaining the maximum age permitted to be subscribed to such scheme; (iv) voluntary closure of the account by the subscriber, in cases where so permitted and on the date on which such closure is effected in the system; Provided that a subscriber shall be deemed to have exited from National Pension System, in accordance with sub-clause (i) to (iv) notwithstanding that no claims have been received by or on behalf of the subscriber or such claims having being received are pending settlement. Provided further that where a subscriber ceases to be in employment other than retirement or superannuation, it shall not be treated as exit and he shall have the option to continue his individual pension account, if available under new employment or as voluntarily available to citizens, unless the subscriber prefers a claim as provided under these regulations for withdrawal of benefits. 5 Regulation The expression “defer” or “deferment” wherever used in The expression “defer” or “deferment” wherever used in 2(1)(l) these regulations shall mean the postponement or these regulations shall mean the postponement or deferment of claims for receiving benefits admissible to deferment of benefits admissible to a subscriber upon exit a subscriber upon exit from National Pension System. from National Pension System. 6 Regulation - (m) “pension schemes” means all existing schemes 2(1)(m) (common schemes) under Tier-I of the National Pension System approved by the Authority, prior to the notification of these amendments and such Tier-I schemes under regulation 4A of these regulations, offered to non- Page 4 of 32government sector subscribers, post the notification of these amendments. 7 Regulation Exit from National Pension System for government Exit from National Pension System for government sector 3 sector subscribers.- A subscriber under the government subscribers.- sector shall exit from the National Pension System in A subscriber under the government sector, any of the manners specified hereunder, namely :- 8 Regulation (a) Where the subscriber who, upon attaining the age of (a) upon attaining the age of superannuation as prescribed 3(a) superannuation as prescribed by the service rules by the service rules applicable, shall continue within the applicable to him or her, retires, then at least forty per National Pension System and upon Exit being exercised, cent out of the accumulated pension wealth of such at least forty per cent out of the accumulated pension subscriber shall be mandatorily utilized for purchase of wealth shall be utilized for purchase of annuity contract annuity providing for a monthly or any other periodical (termed as default annuity) providing for a monthly or any pension and the balance of the accumulated pension other periodical pension and the balance of the wealth, after such utilization, shall be paid to the accumulated pension wealth shall be paid to the subscriber subscriber in lump sum or he shall have a choice to in lump sum or in accordance with other options specified collect such remaining pension wealth in accordance by the Authority from time to time, in the interest of the with the other options specified by the Authority from subscriber; time to time, in the interest of the subscribers: Provided that, - Provided that where the accumulated pension wealth of the (i) [the following shall be the default annuity subscriber is equal to or less than a sum of twelve lakh contract that will be applicable and wherein the annuity rupees or any other limit determined by the authority, the contract shall provide for annuity for life of the subscriber shall have an option to withdraw an amount not subscriber and his or her spouse (if any) with provision exceeding six lakh rupees or fifty percent of accumulated for return of purchase price of the annuity and on the pension wealth whichever is higher and with respect to the demise of such subscriber and his or her spouse, the balance amount, the subscriber shall avail periodic payouts annuity be re-issued to the family members in the order in the form of systematic unit redemption or such other specified hereunder, at the rate of premium prevalent at options, as may be permitted by the Authority, for at least the time of purchase of such annuity by utilizing the a minimum period of five years, or purchase an annuity for purchase price required to be returned under the annuity such amount or a mix of both. Notwithstanding the above, contract (until the family members in the order specified upon exercise of such option, the right of such subscriber below are covered): to receive any pension or other amount from such (a) living dependent mother of the deceased subscriber; individual pension account shall extinguish; (b) living dependent father of the deceased subscriber. After the coverage of the family members Provided further that any one of the above mentioned specified above, the purchase price or the amount which benefits may be deferred till the age of eighty-five by was to be utilised for purchase of annuity shall be submitting a request to National Pension System Trust or returned to the surviving children of the subscriber and any intermediary or entity authorized by the Authority for in absence of children to the legal heir(s) of the this purpose and during which period at any time subscriber, as the case may be; subscriber shall have an option to exit from the National In the absence of or non-availability of such a Pension System subject to the condition precedent that in default annuity for any reason, the subscriber shall be case of death of the subscriber occurs before such due date Page 5 of 32required to exercise the option for purchase of such of purchase of an annuity after the deferment, the default annuity of his choice, within the then annuity types or annuity shall mandatorily be purchased. In the absence of contracts made available by the annuity service or non-availability of such a default annuity for any reason, providers empanelled by the Authority; the family member(s) of the deceased subscriber, in the Further, a subscriber who wishes to opt out of the default manner specified for the purpose of default annuity, shall option mentioned above and wishes to choose the be required to purchase any other annuity made available annuity contract of his choice from the available annuity by the annuity service providers empaneled by the types or contracts with the annuity service providers, Authority. In the absence of such family member, the shall be required to specifically opt for such an option;] entire accumulated pension wealth shall be paid to the (ii) where the subscriber does not desire to nominee(s) or the legal heir(s), as the case may be. withdraw the balance amount, after purchase of mandatory annuity, such subscriber shall have the option to defer the withdrawal of the lump sum amount until he or she attains the age of [seventy-five years], provided the subscriber intimates his or her intention to do so in writing, not less than fifteen days prior to his attaining the age of superannuation, to the Central recordkeeping agency or National Pension System Trust or any other approved intermediary or entity authorized by the Authority, in the specified form or in any other manner specified by the Authority; [The subscriber shall have an option to exit from the National Pension System at any point of time and frequency by submitting a request to National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose. In case of death of subscriber during the period of deferment, such deferred amount of the subscriber shall be paid in the preferential order of nominee(s) followed by legal heir(s).] [(iii) where the subscriber desires to defer the purchase of annuity, he or she shall have the option to do so [until attaining the age of seventy-five years,] provided the subscriber intimates his or her intention to do so in writing in the specified form or in any other manner approved by the Authority, at least fifteen days prior to the attainment of age of superannuation, to the Central recordkeeping agency or National Pension System Trust or an intermediary or entity authorized by the Authority for this purpose. [The subscriber shall have an option to purchase an annuity at any point of time during the deferment period by submitting a request to National Page 6 of 32Pension System Trust or any intermediary or entity authorized by the Authority for this purpose.] It shall be a condition precedent to opt for such deferment of annuity purchase, that in case if the death of the subscriber occurs before such due date of purchase of an annuity after the deferment, the annuity shall mandatorily be purchased by the spouse (if any) providing for annuity for life of the spouse with provision for return of purchase price of the annuity and upon the demise of such spouse, be re-issued to the family members in the order of preference provided hereunder, at the rate of premium prevalent at the time of purchase of the annuity, utilizing the purchase price required to be returned under the contract (until the family members in the order specified below are covered):- (a) living dependent mother of the deceased subscriber; (b) living dependent father of the deceased subscriber. After the coverage of the family members specified above, the purchase price or the amount which was to be utilised for purchase of annuity shall be returned to the surviving children of the subscriber and in absence of children to the legal heir(s) of the subscriber as the case may be;] (iv) where the subscriber desires to defer the withdrawal of benefits available under National Pension System, the expenses, maintenance charges and fee payable under the National Pension System in respect of the individual pension account/ Permanent Retirement Account, shall continue to remain applicable; [(v) where the accumulated pension wealth in the Permanent Retirement Account of the subscriber is equal to or less than a sum of five lakh rupees, or a limit as specified by the Authority, the subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing annuity and upon such exercise of this option, the right of such subscriber to receive any pension or other amount under the National Pension System or from the government or employer, shall extinguish;] Page 7 of 32[[[(vi) where the subscriber desires to continue in the National Pension System and contribute to his retirement account beyond the age of sixty years or the age of superannuation, he or she shall have the option to do so by giving in writing or in such form as may be specified, and up to which he would like to contribute to his individual pension account but not exceeding seventy-five years of age. Such option shall be exercised at least fifteen days prior to the age of attaining sixty years or age of superannuation, as the case may be to the central recordkeeping agency or the National Pension System Trust or any other intermediary or entity authorized by the Authority for the purpose. In such cases, individual pension account/ Permanent Retirement Account shall require to be shifted from Government sector to All citizens including corporate sector and the expenses, maintenance charges and fee payable under the National Pension System in respect of the said individual pension account/ Permanent Retirement Account, shall continue to remain applicable; Provided further that such subscriber who has not exercised the option within the period of fifteen days, so stipulated, but desires to continue with his individual pension account under National Pension System, beyond the age of sixty years or the age of superannuation, as the case may be, and to the extent so permitted, may do so by making an application in writing with reasons for such delay to the National Pension System Trust. The authorized officer of the National Pension Trust, may condone such delay, if any, in exercise of such option by the subscriber, as he may deem fit, having regard to the cause so shown or on any other relevant matter. Notwithstanding exercise of such option, the subscriber may exit at any point of time from National Pension System, by submitting a request to central recordkeeping agency or the National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose;] Page 8 of 32[(vii) Provided that if the employer certifies that the subscriber has been discharged from the services of the concerned office on account of invalidation or disability [or premature retirement as per the applicable service rules,] the exit shall be determined as specified under sub-regulation (a).] [In case of a Central Government employee, if the subscriber is discharged from service on the following grounds, as prescribed under CCS NPS Rules 2021 and amendment thereto, the exit shall be determined as specified under sub-regulation(a). a) Completion of twenty years' regular service. b) Benefits on retirement under Rule 56 of fundamental rules or under the special voluntary retirement Scheme. c) Entitlement on retirement on invalidation. d) Entitlement on boarding out from service on account of disablement. e) Absorption in or under a Corporation or Company or Body wholly or substantially owned or controlled or financed by the Central Government or a State Government, if the National Pension System does not exist in the new organization.] 9 Regulation (b) where the subscriber who, before attaining the age of (b) where the employer or Government permits resignation 3(b) superannuation prescribed by the service rules from service or issues orders of dismissal or removal from applicable to him or her, [on resignation from service service, may voluntarily close his individual pension voluntarily closes individual pension account whereupon at least eighty per cent out of the account/Permanent Retirement Account or exits or accumulated pension wealth of the subscriber shall dismissed or removed by the Government or employer mandatorily be utilized for purchase of a default annuity prematurely], then at least eighty per cent out of the or other annuity made available by the annuity service accumulated pension wealth of the subscriber shall providers empaneled by the Authority in case of non- mandatorily be utilized for purchase of annuity and the availability of default annuity and the balance of the balance of the accumulated pension wealth, after such accumulated pension wealth, shall be paid to the utilization, shall be paid to the subscriber in lump sum subscriber in lump sum or as per other options specified or [the subscriber] shall have a choice to collect such by the Authority from time to time, in the interest of the remaining pension wealth in accordance with the other subscribers: options specified by the Authority from time to time, in Provided that if the accumulated pension wealth of the the interest of the subscribers: subscriber is equal to or less than four lakh rupees or any [Provided that such annuity contract shall provide for other limit determined by the Authority, such subscriber annuity for life of the subscriber and his or her spouse shall have the option to withdraw the entire accumulated (if any) with provision for return of purchase price of the pension wealth without purchasing any annuity and upon annuity and on the demise of such subscriber and his or such exercise of this option the right of the subscriber to Page 9 of 32her spouse, the annuity be re-issued to the family receive any pension or other amounts under the National members in the order specified hereunder at the rate of Pension System shall extinguish and any such exercise of premium prevalent at the time of purchase of the this option by the subscriber, before the notification of this annuity, utilizing the purchase price required to be provision, shall be deemed to have been made in returned under the annuity contract (until the family accordance with this regulation;] members in the order specified below are covered) :- (i) living dependent mother of the deceased subscriber; (ii) living dependent father of the deceased subscriber. After the coverage of the family members specified above, the purchase price or the amount which was to be utilised for purchase of annuity shall be returned to the surviving children of the subscriber and in the case of absence of children, to the other legal heir(s) of the subscriber, as the case may be; In the absence of or non-availability of such a default annuity for any reason, the subscriber shall be required to exercise the option for purchase of such annuity of his choice, within the then annuity types or contracts made available by the annuity service providers empanelled by the Authority; Further, a subscriber who wishes to opt out of the option mentioned above and wishes to choose the annuity contract of his choice, from the available annuity types or contracts with the annuity service providers, shall be required to specifically opt for such an option.] [Provided that if the accumulated pension wealth of the subscriber is more than two lakh fifty thousand rupees or a limit to be specified by the Authority for the purpose but the age of the subscriber is less than the minimum age required for purchasing any annuity from any of the empanelled annuity service providers as chosen by such subscriber, such subscriber shall continue to be subscribed to the National Pension System, until he or she attains the age of eligibility for purchase of any annuity:] [Provided further that if the accumulated pension wealth of the subscriber is equal to or less than two lakh fifty thousand rupees or a limit to be specified by the Authority, such subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity and upon such exercise of this Page 10 of 32option the right of the subscriber to receive any pension or other amounts under the National Pension System shall extinguish and any such exercise of this option by the subscriber, before the notification of this provision, shall be deemed to have been made in accordance with this regulation;] 10 Regulation (c) where the subscriber who, before attaining the (c) before attaining the age of superannuation, dies, then 3(c) age of superannuation, dies, then at least eighty percent eighty percent out of the accumulated pension wealth of out of the accumulated pension wealth of the subscriber the subscriber shall be mandatorily utilized for purchase of shall be mandatorily utilized for purchase of annuity and the default annuity and balance pension wealth shall be balance pension wealth shall be paid as lump sum or in paid as lump sum or in another manner from among the another manner from among the options made available options made available by the Authority from time to time by the Authority from time to time to the nominee or to the nominee or nominees or legal heirs, as the case may nominees or legal heirs, as the case may be, of such be, of such subscriber; subject to the condition that if the subscriber: accumulated pension wealth in the retirement account of Provided that, - the subscriber at the time of his death is equal to or less [(i) such annuity contract shall provide for annuity for than twelve lakh rupees or any other limit as determined life of the spouse of the subscriber (if any) with by the Authority, the nominee or legal heir(s) as the case provision for return of purchase price of the annuity and may be, shall have the option to withdraw an amount not upon the demise of such spouse be re-issued to the exceeding six lakh rupees or fifty percent of accumulated family members in the order specified hereunder at the pension wealth whichever is higher and with respect to the rate of premium prevalent at the time of purchase of the balance amount, the legal heir(s) shall avail periodic annuity, utilizing the purchase price required to be payouts in the form of systematic unit redemption or such returned under the contract (until the family members in other options, as may be permitted by the Authority, for at the order specified below are covered) :- least a minimum period of five years, or purchase an (a) living dependent mother of the deceased subscriber; annuity for such amount or a mix of both. Notwithstanding (b) living dependent father of the deceased subscriber. the above, upon exercise of such option, the right of such After the coverage of the family members specified legal heir(s) to receive any pension or other amount from above, the purchase price or the amount which was to be such individual pension account shall extinguish. utilised for purchase of annuity shall be returned to the surviving children of the subscriber. In absence of Explanation: For the purpose of this Regulation, Default children, the legal heir(s) of the subscriber as the case Annuity shall provide for annuity for life of the subscriber may be. In the absence of or non-availability of such a and his or her spouse (if any) with provision for return of default annuity for any reason, the family member of the purchase price of the annuity and on the demise of such deceased subscriber shall be required to exercise the subscriber and his or her spouse, the annuity be re-issued option for purchase of such annuity of his choice, within to the family members in the order specified hereunder, at the then annuity types or contracts made available by the the rate of premium prevalent at the time of purchase of annuity service providers empanelled by the Authority;] such annuity by utilizing the purchase price required to be [(ii) Provided further that if the accumulated pension returned under the annuity contract (until the family wealth in the permanent retirement account of the members in the order specified below are covered): subscriber at the time of his death is equal to or less than (a) mother of the deceased subscriber; Page 11 of 32Five lakh rupees or a limit to be specified by the (b) father of the deceased subscriber. Authority, the nominee or legal heir(s) as the case may After the coverage of the family members specified above, be, shall have the option to withdraw the entire the purchase price or the amount which was to be utilised accumulated pension wealth without requiring to for purchase of annuity shall be returned to the surviving purchase any annuity and upon such exercise of this children of the subscriber and in absence of children to the option the right of the family members to receive any legal heir(s) of the subscriber, as the case may be; pension or other amounts under the National Pension System shall extinguish.]] In case of non-availability of such a default annuity or where the subscriber opts not to take the default annuity, the subscriber shall be required to exercise the option for purchase of such annuity of his choice, within the then annuity types or contracts made available by the annuity service providers empaneled by the Authority. 11 Regulation [(d) Where the subscriber who, before attaining the age Redrafted and placed under new Regulation 5B. 3(d) of superannuation is identified as missing person by the nodal office or the employer, based on the (i) First Regulation 3(d) now reads as under: Investigation Report (FIR) lodged with the concerned police station and a report from the police that the (d) where the employer certifies that the subscriber has subscriber has not been traced despite all efforts made been discharged from the services of the concerned office by the police and (ii) Indemnity bond from the on account of invalidation or disability [or premature nominee(s) or the legal heirs(s) in favour of National retirement as per the applicable service rules,] the exit shall Pension System Trust that all payments will be adjusted be determined as specified under sub-regulation (a).] against the payment due to the subscriber in case he or Provided further that in case of a Central Government she appears on the scene and makes any claim, then employee, if the subscriber is discharged from service on twenty percent of the accumulated pension wealth shall the following grounds, as prescribed under CCS NPS be paid as an interim relief in lump sum to the Rules 2021 and amendment thereto, the exit shall be nominee(s) or legal heir(s), as the case may be, of such determined as specified under sub-regulation(a): subscriber and the remaining eighty percent out of the i. Completion of twenty years' regular service. accumulated pension wealth of the subscriber shall be ii. Benefits on retirement under Rule 56 of mandatorily utilized for purchase of annuity after fundamental rules or under the special voluntary determination of subscriber as missing and presumed retirement Scheme. dead, as per the provisions of the Indian Evidence Act iii. Entitlement on retirement on invalidation. 1872 and amendments thereto: iv. Entitlement on boarding out from service on Provided that such annuity contract shall be made as per account of disablement. proviso (i) of sub-regulation (c) of Regulation 3.] v. Absorption in or under a Corporation or Company or Body wholly or substantially owned or controlled or financed by the Central Government or a State Government, if the National Pension System does not exist in the new organization.] Page 12 of 3212 Regulation 4. Exit from National Pension System by citizens, 4. Exit from National Pension System by citizens, 4 including corporate sector subscribers. - Any subscriber, including corporate sector subscribers. - Any subscriber, including a corporate sector subscriber, registered under including a corporate sector subscriber, registered under the National Pension System, shall exit from the the National Pension System, shall remain within the National Pension System in the manner specified System until the age of eighty-five unless an Exit is hereunder, namely: - exercised from the National Pension System in a manner specified hereunder, namely: - 13 Regulation [(a) where a subscriber attains the age of sixty years or [(a) where a subscriber attains the age of sixty years or 4(a) superannuates in accordance with the service rules retires in accordance with the terms and conditions applicable to such subscriber, at least forty percent out applicable to such subscriber, at least twenty percent out of the accumulated pension wealth of such subscriber of the accumulated pension wealth of such subscriber shall shall be mandatorily utilized for purchase of annuity be mandatorily utilized for purchase of annuity providing providing for a monthly or any other periodical pension for a monthly or any other periodical pension and the and the balance of the accumulated pension wealth, after balance of the accumulated pension wealth, shall be paid such utilization, shall be paid to the subscriber in lump to the subscriber in lump sum [or he shall have a choice sum [or he shall have a choice to collect such remaining to collect such remaining pension wealth in accordance pension wealth in accordance with the other options with the other options specified by the Authority from time specified by the Authority from time to time, in the to time, in the interest of the subscriber]. interest of the subscriber]. In case, the accumulated pension wealth of the subscriber is equal to or less than Provided that a sum of five lakh rupees, the subscriber shall have the (i) any purchase of annuity or payment of balance of the option to withdraw the entire accumulated pension accumulated pension wealth or both, may be deferred till wealth without purchasing any annuity:] the age of eighty-five years by submitting a request to Provided that- National Pension System Trust or any intermediary or (i) [[[[ Where the subscriber does not exit from the entity authorized by the Authority for this purpose and National Pension System beyond the age of sixty years, during such period subscriber shall have an option to exit or the age of superannuation, as the case may be, shall from the National Pension System at any time. It shall be continue to remain subscribed to the National Pension a condition precedent to opt for such deferment of annuity System till he or she attains the age of seventy-five purchase, that in case if the death of the subscriber occurs years. Provided further that a subscriber having any before such due date of purchase of an annuity after the employee-employer relationship, the individual pension deferment, then the entire accumulated pension wealth of account/ Permanent Retirement Account shall be shifted the subscriber shall be paid to the nominee(s) or legal from the employer to all citizens model. heir(s), as the case may be, of such subscriber; Provided that where the accumulated pension wealth of the Notwithstanding in such automatic continuation, the subscriber is equal to or less than a sum of twelve lakh subscriber may exit at any point of time from the rupees or any other limit determined by the authority, the National Pension System, by submitting a request to subscriber shall have an option to withdraw an amount not National Pension System Trust or any intermediary or exceeding six lakh rupees or fifty percent of accumulated entity authorized by the Authority for the purpose. In pension wealth whichever is higher and with respect to the case of death of subscriber during the period of balance amount, the subscriber shall avail periodic payouts continuation, the entire accumulated pension wealth of in the form of systematic unit redemption or such other Page 13 of 32the subscriber shall be paid to the nominee(s) or legal options, as may be permitted by the Authority, for at least heir(s), as the case may be, of such subscriber. The a minimum period of five years, or purchase an annuity for nominee(s) or legal heir (s) of the deceased subscriber such amount or a mix of both. Notwithstanding the above, shall have the option to purchase any of the annuities upon exercise of such option, the right of such subscriber being offered upon exit, if they so desire;] to receive any pension or other amount from such (ii) the subscriber shall have the option to defer the individual pension account shall extinguish; withdrawal of lump sum amount until he or she attains Explanation: For the purpose of this regulation, a the age of [seventy-five years], provided the subscriber subscriber under Corporate sector, upon retirement in intimates his or her intention to do so in writing in the accordance with the service rules applicable, shall specified form at least fifteen days before the attainment continue within the National Pension System under the of age of sixty years or, the age of superannuation, as the ‘All Citizen’ category unless an exit is exercised. case may be, to the National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose; [The subscriber shall have an option to exit from the National Pension System at any point of time and frequency by submitting a request to National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose. In case of death of subscriber during the period of deferment, such deferred amount of the subscriber shall be paid in the preferential order of nominee(s) followed by legal heir(s).] (iii) [ the subscriber shall have the option to defer the purchase of annuity [until he or she attains the age of seventy-five years, provided that] the subscriber intimates his or her intention to do so in writing in the specified form at least fifteen days before the attainment of age of sixty years or the age of superannuation, as the case may be, to the National Pension System Trust or any intermediary or other entity authorized by the Authority for this purpose. [The subscriber shall have an option to purchase an annuity at any point of time during the deferment period by submitting a request to National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose.] It shall be a condition precedent to opt for such deferment of annuity purchase, that in case if the death of the subscriber occurs before such due date of purchase of an annuity after the deferment, then the entire accumulated Page 14 of 32pension wealth of the subscriber shall be paid to the nominee(s) or legal heir(s), as the case may be, of such subscriber;] (iv) the subscriber shall be allowed to continue to subscribe, defer the withdrawal of lump sum amount or the purchase of annuity, as the case may be, provided the subscriber agrees to bear the maintenance charges of the Permanent Retirement Account, including the charges payable to the central recordkeeping agency, pension fund, Trustee Bank or any other intermediary, as may be applicable from time to time; [(v) Provided that a subscriber is physically incapacitated or has suffered a bodily disability leading to his incapability to continue with his individual pension account under National Pension System, the exit in such cases shall be determined as per the provisions of sub regulation (a) subject to the subscriber submitting a disability certificate from a Government surgeon or Doctor (treating such disability or invalidation of subscriber) stating the nature and extent of disability and also certifying that: a. the affected subscriber shall not be in a position to perform his regular duties and there is a real possibility of the affected subscriber, being not able to work for the remaining period of his life.; and b. Percentage of disability is more than seventy five percent. in the opinion of such Government surgeon or doctor (treating such disability or invalidation of subscriber).] 14 Regulation (b) where the subscriber who, before attaining the (b) where the subscriber who, before attaining the age of 4(b) age of sixty years or the age of superannuation as sixty years or the age of superannuation as prescribed by prescribed by service rules, [or subscriber not having service rules, [or subscriber not having any employee- any employee-employer relationship having subscribed employer relationship having subscribed to the National to the National Pension System for at least a minimum Pension System for at least a minimum period of five period of five years, voluntarily opts to exit from the years, voluntarily opts to exit from the National Pension National Pension System, then] at least eighty percent System, then] at least eighty percent out of the out of the accumulated pension wealth shall be accumulated pension wealth shall be mandatorily utilized mandatorily utilized for purchase of annuity and the for purchase of annuity and the balance of the accumulated pension wealth, shall be paid to the subscriber in lump sum Page 15 of 32balance of the accumulated pension wealth, after such or in accordance with other options specified by the utilization, shall be paid to the subscriber in lump sum: Authority from time to time, in the interest of the [Provided that if the accumulated pension wealth of the subscriber: subscriber is more than two lakh fifty thousand rupees but the age of the subscriber is less than the minimum [Provided further that if the accumulated pension wealth age required for purchasing any annuity from any of the in the individual pension account of the subscriber is equal empanelled annuity service providers as chosen by such to or less than four lakh rupees, or a limit determined by subscriber, such subscriber shall continue to subscribe the Authority, such subscriber shall have the option to to the National Pension System, until he or she attains withdraw the entire accumulated pension wealth without the age of eligibility for purchase of any annuity:] requiring to purchase any annuity and upon exercise of [[Provided further that if the accumulated pension such option, the right of such subscriber to receive any wealth in the individual pension account of the pension or other amount under the National Pension subscriber is equal to or less than two lakh fifty thousand System shall extinguish;]] rupees, or a limit to be specified by the Authority, such subscriber shall have the option to withdraw the entire accumulated pension wealth without requiring to purchase any annuity;]] 15 Regulation (c) where the subscriber who, before attaining the age of (c) where the subscriber dies before exit, the entire 4(c) sixty years or the age of superannuation as prescribed by accumulated pension wealth of the subscriber shall be paid the respective service rules applicable to him or her, in lumpsum to the nominee(s) or legal heir(s), as the case dies, then the entire accumulated pension wealth of the may be, of such subscriber. subscriber shall be paid to the nominee or nominees or legal heirs, as the case may be, of such subscriber: Provided that,- (i) the [nominee(s) or legal heir(s)] of the deceased Provided that,- subscriber shall have an option to avail periodic payouts in (i) the [nominee(s) or legal heir(s)] of the the form of systematic unit redemption or such other deceased subscriber shall have the option to purchase options, as may be permitted by the Authority, for at least any of the annuities being offered upon exit, if they so a minimum period of five years, or purchase an annuity for desire, while applying for withdrawal of benefits on such amount or a mix of both and upon exercise of such account of deceased subscribers’ Permanent Retirement option, the right of nominee(s) or legal heir(s) to receive Account; any pension or other amount from such individual pension account shall extinguish. (ii) [in case, the nomination is not registered by the deceased subscriber before his death, the accumulated (ii) [in case, the nomination is not registered by the pension wealth shall be paid to the family members on deceased subscriber before his death, the accumulated the basis of the legal heir certificate issued by the pension wealth shall be paid to the family members on the competent authorities of the State concerned or the basis of the legal heir certificate issued by the competent succession certificate issued by a court of competent authorities of the State concerned or the succession jurisdiction.] certificate issued by a court of competent jurisdiction.] Page 16 of 3216 Regulation [(d) [ Exit from National Pension System by subscribers, Redrafted and placed under Regulation 4(e). 4(d) joining such pension system on or after attaining the age of sixty years (but before attaining seventy years of Regulation 4(d) now reads as under: age):] [(d) In case of a subscriber being physically incapacitated (i) [In case of a subscriber, joining National or has suffered a bodily disability leading to his Pension System under all citizens model or in corporate incapability to continue with his individual pension model, on or after attaining the age of sixty years, (but account under National Pension System, the exit in such before attaining seventy years of age) and after having cases shall be determined as per the provisions of sub subscribed to such pension system for at least a period regulation (a) subject to the subscriber submitting a of three years from the date of such joining and disability certificate from a Government surgeon or Doctor thereafter till he attains the age of seventy five years, on (treating such disability or invalidation of subscriber) exit, at least forty percent out of the accumulated stating the nature and extent of disability and also pension wealth of such subscriber shall be mandatorily certifying that: utilized for purchase of annuity providing for a monthly a. the affected subscriber shall not be in a position or any other periodical pension and the balance of the to perform his regular duties and there is a real possibility accumulated pension wealth, after such utilization, shall of the affected subscriber, being not able to work for the be paid to the subscriber in lump sum. In case, the remaining period of his life.; and accumulated pension wealth of the subscriber is equal to b. Percentage of disability is more than seventy five or less than a sum of five lakh rupees or a limit to be percent. in the opinion of such Government surgeon or specified by the Authority, the subscriber shall have the doctor (treating such disability or invalidation of option to withdraw the entire accumulated pension subscriber).] wealth without there being any requirement of purchasing an annuity;] [Provided that such clause shall not be applicable to the subscribers of a body corporate or other entity under the ownership and control, either of the Central Government or any State Government or a Government Company, and their exit shall be governed by other sub-regulations of Regulation 4, as may be applicable;] (ii) where a subscriber under sub-clause(i) who, before completion of three years in such pension system, voluntarily opts to exit from the National Pension System, at least eighty percent out of the accumulated pension wealth shall be mandatorily utilized for purchase of annuity and the balance of the accumulated pension wealth, after such utilization, shall be paid to the subscriber in lump sum. Page 17 of 32[Provided further that if the accumulated pension wealth in the individual pension account of the subscriber is equal to or less than a sum of Rupees two lakh fifty thousand, or a limit to be specified by the Authority, such subscriber shall have the option to withdraw the entire accumulated pension wealth without there being any requirement of purchase of an annuity;] (iii) Where a subscriber under sub-clause (i) dies, while being subscribed to National Pension System, the entire accumulated pension wealth of the subscriber shall be paid to the nominee or nominees or legal heirs, as the case may be, of such subscriber, in accordance with the provisions of these regulation.] 17 Regulation [(e) where the subscriber who, before attaining the age Redrafted and placed under new Regulation 5B. 4(e) of superannuation is identified as missing person by National Pension System Trust, based on the (i) First Regulation 4(e) now reads as under: Investigation Report (FIR) lodged with the concerned police station and a report from the police that the (e) In case of an individual opening individual pension subscriber has not been traced despite all efforts made account under National Pension System, on or after by the police and (ii). Indemnity bond from the attaining the age of sixty years, (but before attaining eighty nominee(s) or the legal heirs(s) in favour of National five years of age), on exit, at least twenty percent out of Pension System Trust that all payments will be adjusted the accumulated pension wealth of such subscriber shall against the payment due to the subscriber in case he or be mandatorily utilized for purchase of annuity providing she appears on the scene and makes any claim, then for a monthly or any other periodical pension and the twenty percent of the accumulated pension wealth shall balance of the accumulated pension wealth, shall be paid be paid as an interim relief in lump sum to the to the subscriber in lump sum or in accordance with other nominee(s) or legal heir(s), as the case may be, of such options specified by the Authority from time to time, in the subscriber and after determination of subscriber as interest of the subscriber. In case the accumulated pension missing and presumed dead as per the provisions of the wealth of the subscriber is equal to or less than a sum of Indian Evidence Act 1872 and amendments thereto, the twelve lakh rupees or any other limit as determined by the remaining eighty percent out of the accumulated pension Authority, the subscriber shall have the option to withdraw wealth of the subscriber shall be paid to the nominee (s) the entire accumulated pension wealth without there being or legal heir(s), as the case may be, of such subscriber: any requirement of purchasing an annuity; Provided that that proviso (i) and (ii) of sub-regulation (c) of Regulation 4 shall be applicable.] 18 New - 4A. Exit from Schemes approved under Section 20(2) of Regulation: the Act for non-government sector subscriber – Page 18 of 32Regulation (1) a subscriber shall have the choice to exit from a scheme 4A upon having subscribed thereto for such period as provided under such scheme which shall not be less than fifteen years or upon having attained the age of sixty years or upon superannuation or retirement, as the case may be until attaining the age of eighty five years. In any such cases, at least twenty percent out of the accumulated pension wealth of such subscriber shall be mandatorily utilized for purchase of an annuity providing for a monthly or any other periodical pension and the balance of the accumulated pension wealth, shall be paid to the subscriber in lumpsum or he shall have a choice to collect such remaining pension wealth in accordance with any other payouts, approved by the Authority from time to time, in the interest of the subscriber. Provided that where the accumulated pension wealth of the subscriber is equal to or less than a sum of twelve lakh rupees or any other limit determined by the authority, the subscriber shall have an option to withdraw an amount not exceeding six lakh rupees or fifty percent of accumulated pension wealth whichever is higher and with respect to the balance amount, the subscriber shall avail periodic payouts in the form of systematic unit redemption or such other options, as may be permitted by the Authority, for at least a minimum period of five years, or purchase an annuity for such amount or a mix of both. Notwithstanding the above, upon exercise of such option, the right of such subscriber to receive any pension or other amount from such individual pension account shall extinguish. (2) If a subscriber has neither attained the age of 60 years nor retired as per the terms and conditions of employment prior to the expiry of vesting period of the scheme, and voluntarily opts to exit from the National Pension System, then at least eighty percent out of the accumulated pension wealth shall be mandatorily utilized for purchase of annuity and the balance of the accumulated pension wealth, shall be paid to the subscriber in lump sum or in accordance with other options specified by the Authority from time to time, in the interest of the subscriber: Page 19 of 32Provided further that if the accumulated pension wealth in the individual pension account of the subscriber is equal to or less than four lakh rupees, or a limit determined by the Authority, such subscriber shall have the option to withdraw the entire accumulated pension wealth without requiring to purchase any annuity and upon exercise of such option, the right of such subscriber to receive any pension or other amount under the National Pension System shall extinguish; (3) Exit in case of death of the subscriber or disability or joining after attaining the age of sixty years, the provisions of regulation 4 shall be applicable. (4) A subscriber, who has subscribed to a particular scheme of Pension Fund(s) under sub-regulation (1) in accordance with features of such scheme shall have the option to switch from such scheme to an existing common scheme under NPS Tier-I. Upon exercise of choice to switch, any exit thereafter shall be in accordance with the provisions of regulation 4. 19 New - New Regulation: Regulation: 4B. Exit and withdrawal in case of NPS Vatsalya:- (1) An Regulation NPS Vatsalya subscriber shall continue under All Citizen 4B sector upon attaining the age of eighteen years unless such subscriber opts out of such scheme. (2) A subscriber covered under sub-regulation (1), shall be eligible to opt out of the scheme only upon attaining eighteen years of age, whereupon at least eighty percentage of accumulated pension wealth shall be utilized for purchase of annuity and remaining balance shall be paid in lump sum. Provided that if the accumulated pension wealth is equal to or less than four lakh rupees, the subscriber shall have the option to withdraw the entire accumulated pension wealth in lumpsum without requiring to purchase any annuity and upon exercise of such option, the right of such subscriber to receive any pension or other amount shall extinguish. Page 20 of 32(3) In the case of death of the minor subscriber, the entire accumulated pension wealth in the individual pension account shall be payable to the guardian whose name is registered in the records. (4) Partial withdrawal shall be permitted from the individual pension account for the purpose of education of subscriber, treatment of specified illnesses, upon disability of seventy five percent or more, or such other reasons permitted by the Authority. In such a case, the guardian shall be allowed partial withdrawal from accumulated pension wealth of the subscriber, not exceeding twenty- five per cent of the contributions made as available at that point of time of request, if any. Provided that the subscriber has completed a minimum period of three years from the date of opening of account under such scheme, and such request shall be permitted for a maximum of three times before attaining the age of eighteen years, such that between one withdrawal request and the succeeding one there shall be a minimum interval of four years. 20 Regulation (a) Upon a subscriber, attaining the age of sixty years, at (a) Upon a subscriber, attaining the age of sixty years, at 5(a) least forty percent of the accumulated pension wealth of least forty percent of the accumulated pension wealth of such subscriber shall be mandatorily utilized for such subscriber shall be mandatorily utilized for purchase purchase of annuity providing for a monthly or any other of annuity providing for a monthly or any other periodical periodical pension and the balance of the accumulated pension and the balance of the accumulated pension pension wealth, after such utilization, shall be paid to the wealth, shall be paid to the subscriber in lump sum... subscriber in lump sum... 21 Regulation (ii) if the accumulated pension wealth of the subscriber (ii) if the accumulated pension wealth of the subscriber is 5(a)(ii) is equal to or less than a sum of one lakh rupees, such equal to or less than a sum of two lakh rupees, such subscriber shall have the option to withdraw the entire subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing any accumulated pension wealth without purchasing any annuity and upon such exercise of this option, the right annuity and upon such exercise of this option, the right of of the subscriber to receive any pension under the the subscriber to receive any pension under the National National Pension System shall extinguish and any such Pension System shall extinguish and any such exercise of exercise of this option by the subscriber, before the this option by the subscriber, before the regulations are regulations are notified, shall be deemed to have been notified, shall be deemed to have been made in accordance made in accordance with this regulation; with this regulation; 22 Regulation (b) [At any time, before attaining the age of sixty (b) [At any time, before attaining the age of sixty years, 5(b) years, subject however that at least eighty percent out of subject however that at least eighty percent out of the the accumulated pension wealth shall be mandatorily accumulated pension wealth shall be mandatorily utilized Page 21 of 32utilized for purchase of annuity and the balance of the for purchase of annuity and the balance of the accumulated accumulated pension wealth, after such utilization shall pension wealth, shall be paid to the subscriber in lump sum be paid to the subscriber in lump sum or he shall have a or he shall have a choice to collect such remaining pension choice to collect such remaining pension wealth in wealth in accordance with the other options specified by the Authority from time to time, in the interest of the accordance with the other options specified by the subscribers; Authority from time to time, in the interest of the subscribers; Provided that for a Swavalamban subscriber, the annuity Provided that for a Swavalamban subscriber, the annuity purchased by utilizing the mandatory minimum of eighty purchased by utilizing the mandatory minimum of percent out of the accumulated pension wealth ought to eighty percent out of the accumulated pension wealth yield at least a monthly annuity or pension of one thousand ought to yield at least a monthly annuity or pension of rupees per month, failing which the entire accumulated one thousand rupees per month, failing which the entire pension wealth shall be annuitised in such a manner so as accumulated pension wealth shall be annuitised in such to yield at least a monthly annuity or pension of one a manner so as to yield at least a monthly annuity or thousand rupees and balance if any thereafter shall be paid pension of one thousand rupees and balance if any as lump sum to the subscriber. However, there shall be no thereafter shall be paid as lump sum to the subscriber. implicit or explicit guarantee that the annuity purchased However, there shall be no implicit or explicit guarantee even with entire accumulated pension wealth would yield that the annuity purchased even with entire accumulated a monthly annuity or pension of one thousand rupees; pension wealth would yield a monthly annuity or Provided further that, where the accumulated pension pension of one thousand rupees; wealth does not exceed two lakh rupees or a limit to be [Provided further that, where the accumulated pension specified by the Authority, the whole pension wealth shall wealth does not exceed one lakh rupees or a limit to be be paid without annuitisation to the subscribers who have specified by the Authority, the whole pension wealth not availed any Swavalamban co-contribution, and also to shall be paid without annuitisation to the subscribers the subscribers who though have availed Swavalamban co- who have not availed any Swavalamban co- contribution but are not eligible for auto migration to Atal contribution, and also to the subscribers who though Pension Yojana, after deducting the Government’s co- have availed Swavalamban co-contribution but are not contribution with returns thereon without requiring them eligible for auto migration to Atal Pension Yojana, after to continue in the scheme for minimum period of twenty- deducting the Government’s co-contribution with five years. returns thereon without requiring them to continue in the Explanation—The migration of a Swavalamban subscriber scheme for minimum period of twenty-five years. to any other pension scheme of Government of India, Explanation—The migration of a Swavalamban including Atal Pension Yojana, as approved by the subscriber to any other pension scheme of Government Authority, shall not be deemed as an exit and withdrawal of India, including Atal Pension Yojana, as approved by for the purposes of these regulations. the Authority, shall not be deemed as an exit and withdrawal for the purposes of these regulations.]] 23 New - 5A. Exit in case of Renunciation of Citizenship. - Where Regulation: a subscriber under National Pension System ceases to be a citizen of India, he shall have the option to close the individual pension account and withdraw the entire Page 22 of 32Regulation accumulated pension corpus, without requirement of 5A purchase of any annuity. 24 New - 5B. Exit in case of missing and presumed dead person. Regulation: - (1) The exit of subscribers, covered under regulation 3, 4, 4A and 5 who are missing and presumed dead, shall be Regulation dealt with as under: 5B (i) the nominee(s) or the legal heir(s), as the case may be, of the subscriber shall be entitled to be paid twenty percent of the accumulated pension wealth as an interim relief in lump sum and the balance eighty percent shall remain invested and be paid upon determination of such subscriber as missing and presumed dead as per the provisions of the Bharatiya Sakshya Adhiniyam, 2023. (ii) For the purpose of release of such interim relief, the nominee(s) or legal heir(s), as the case may be, shall submit to the National Pension System Trust a copy of the First Investigation Report (FIR) lodged with the concerned police station and a report from the police that the subscriber has not been traced despite all efforts made by the police along with an Indemnity bond in favour of National Pension System Trust that neither such Trust nor any other entity or the Authority shall be liable, either to the subscriber, or any other person in respect of the interim relief so paid. (iii) Where the nominee(s) or the legal heir(s), as the case may be, submit an order from a competent court declaring that the subscriber who is missing is presumed to be dead in accordance with the provisions of the Bharatiya Sakshya Adhiniyam, 2023, the balance eighty percent of the pension wealth shall be dealt with in accordance with the provisions of sub-regulation (c) of Regulation 3 or sub- regulation (c) of regulation 4 or sub-regulation (c) of regulation 5, as the case may be. Provided that where the subscriber who had been reported to be missing, is subsequently reported to be alive before a declaration being made by the competent court of his being dead, in such an event the individual pension account of the subscriber shall continue for all purposes and the twenty percent of the pension wealth paid to his Page 23 of 32nominee(s) or the legal heir(s), as the case may be shall be adjusted from the lumpsum withdrawal payment to be made to the subscriber at the time of his exit. 25 Regulation 6. [Conditions to apply for exit and withdrawal.- 6. [Conditions to apply for exit and withdrawal.- A 6 A subscriber registered under the National Pension subscriber registered under the National Pension System System shall not exit there from, and no withdrawal shall not exit there from, and no withdrawal from the from the accumulated pension wealth in the Tier-1 of the accumulated pension wealth shall be permitted, except in Permanent Retirement Account of such subscriber shall the manner so specified under regulations 3, 4, 4A, 5 and be permitted, except in the manner so specified under 8 and further as mentioned in these provisions, namely:-] regulations 3, 4, 5 and 8 and further as mentioned in these provisions, namely:-] 26 Regulation (a) no pension or accumulated pension wealth in (a) subject to provisions sub-regulation (b), no 6(a) Tier-I account of the Permanent Retirement Account of pension or accumulated pension wealth in the individual the subscriber under the National Pension System on pension account(s) of the subscriber under the National account of past or present services, shall be liable to Pension System on account of past or present services, seizure, attachment or sequestration by process of any shall be liable to seizure, attachment or sequestration by court at the instance of a creditor, for any demand process of any court at the instance of a creditor, for any against the subscriber, or in the satisfaction of a decree demand against the subscriber, or in the satisfaction of a or order of any such Court except where the National decree or order of any such Court except where the Pension System Trust or its authorised representative National Pension System Trust or its authorised has accorded prior sanction for assignment of the representative has accorded prior sanction for assignment pension wealth accumulated in the pension account of of the pension wealth accumulated in the pension account the subscriber, which shall be restricted to such limit as of the subscriber, which shall be restricted to such limit as prescribed in Regulation 8. prescribed in Regulation 8. 27 Regulation (b) any assignment, pledge, contract, order, sale or (b) the subscriber shall have the right to seek financial 6(b) security of any kind made by any subscriber of the assistance from a regulated financial institution to the National Pension System, with respect to any benefit extent permitted under regulation 8 and for which purpose, receivable by him or her under the National Pension the subscriber may make any assignment, pledge, contract, System, or in respect of any money payable at or on order, sale or security of any kind with respect to any account of any such benefit to such subscriber under the benefit receivable under the National Pension System, in National Pension System, or for giving or assigning any favour of the lender. The lender may mark a lien or charge future interest therein shall be null and void except on the individual pension account to the extent of the where the National Pension System Trust or its financial assistance so provided to the subscriber. The authorized representative has accorded prior permission National Pension System Trust shall permit such facility for such assignment of the pension wealth accumulated in respect of a request received in accordance with the in the pension account of the subscriber and which shall guidelines or circular issued by the Authority; be restricted to such limit as prescribed in Regulation 8 to which the assignment was agreed or approved by the Page 24 of 32National Pension System Trust or its authorised representative; 28 Regulation Clause (i) With respect to subscribers who have not (i) Clause (e) shall be renumbered as clause (d); 6 submitted the withdrawal application as is required (ii) Clause (g) shall be renumbered as clause (e); under regulation 7 and within one month from the date (iii) Clause (h) shall be renumbered as clause (f); of attainment of the age of sixty years or the age of (iv) Clause (j) shall be renumbered as clause (g); normal superannuation as the case may be, for (v) Clause (i) shall be omitted; withdrawal of benefits upon exit from national pension system, the accumulated pension wealth in the account of such subscriber (both under tier I and tier II) would be monetized and kept separately as per the guidelines or directions issued by the Authority the withdrawal of benefits or have partly withdrawn the benefits and have not taken the steps to completely withdraw the benefits as is required under the regulations and or in the guidelines or directions issued by the Authority for the purpose. Provided that the above provision shall be applicable to Tier-II account activated by the Authority in accordance with National Pension Scheme Tier II-Tax Saver Scheme, 2020 notified by the Central Government, only after completion of lock- in period specified under the said scheme. 29 Regulation 7. [[Conditions of exit or withdrawals or the claim 7. [Conditions of exit or withdrawals or the claim 7 settlement under National Pension System.-(1) A settlement under National Pension System.-(1) A subscriber or the nominee(s), family member(s) as subscriber or the nominee(s), family member(s) as specified under the service rules or legal heir(s), as the specified under the service rules or legal heir(s), as the case may be shall submit the exit, withdrawal or the claim case may be shall submit the exit, withdrawal or the settlement application along with the required documents, claim settlement application along with the required for the purpose of receiving benefits as provided in these documents, for the purpose of withdrawing the benefits regulations, on or before the expected date of exit from the upon exit as provided in these regulations, on or before National Pension System to the National Pension System the expected date of exit from the National Pension Trust or the central recordkeeping agency, acting on behalf System to the National Pension System Trust or the of it or any other entity authorized by the Authority. central recordkeeping agency, acting on behalf of it or Central recordkeeping agency or National Pension System any other entity authorized by the Authority. Central Trust may on receipt of such an application for exit, recordkeeping agency or National Pension System Trust withdrawal or claim settlement from a subscriber or the may on receipt of such an application for exit, nominee(s), family member(s) as specified under the withdrawal or claim settlement from a subscriber or the service rules or legal heir(s), as the case may be in the nominee(s), family member(s) as specified under the specified form and subject to fulfillment of conditions so service rules or legal heir(s), as the case may be in the specified, may allow exit or, withdrawals or the claim specified form and subject to fulfillment of conditions settlement from the National Pension System in the mode Page 25 of 32so specified, may allow exit or, withdrawals or the claim and manner permitted under these regulations and settlement from the National Pension System in the guidelines, circulars, orders or notifications issued by the mode and manner permitted under these regulations and Authority for the purpose.]] guidelines, circulars, orders or notifications issued by the Authority for the purpose.]] 30 Regulation (1) A partial withdrawal of accumulated pension wealth (1) A partial withdrawal from accumulated pension 8(1) of the subscriber, not exceeding twenty-five per cent of wealth of the subscriber, not exceeding twenty-five per the contributions made by the subscriber and excluding cent of the own contributions made by the subscriber as contributions made by employer, if any, at any time available at that point of time of request, if any, subject to the terms and conditions, purpose, frequency and limits before exit from National Pension System subject to the specified below :- terms and conditions, purpose, frequency and limits specified below :- (A) Purpose: A subscriber on the date of submission of the (A) Purpose: A subscriber on the date of submission of withdrawal form, shall be permitted to withdraw for any of the withdrawal form, shall be permitted to withdraw not the following purposes only :- exceeding twenty-five percent. of the contributions (a) for Higher education of self or of his or her children made by such subscriber to his individual pension including a legally adopted child; account, for any of the following purposes only :- (a) for Higher education of his or her children including (b) for the marriage of self or his or her children, including a legally adopted child; a legally adopted child; (b) for the marriage of his or her children, including a (c) for the purchase or construction of a residential house legally adopted child; or flat in his or her own name or in a joint name with his (c) for the purchase or construction of a residential house or her legally wedded spouse. In case, the subscriber or flat in his or her own name or in a joint name with his already owns either individually or in the joint name a or her legally wedded spouse. In case, the subscriber residential house or flat, other than ancestral property, no already owns either individually or in the joint name a withdrawal under these regulations shall be permitted; residential house or flat, other than ancestral property, no withdrawal under these regulations shall be (ca) towards payment of margin money for loan to be permitted; availed for purchase of house or vehicle; (d) for treatment of specified illnesses: if the subscriber, (d) for hospitalisation and treatment of major diseases, his legally wedded spouse, children, including a legally serious accident and critical illness cases of self or legally adopted child or dependent parents suffer from any wedded spouse, children including legally adopted specified illness, which shall comprise of hospitalization children or parents. and treatment in respect of the following diseases: (i) Cancer; [(e) to meet medical and incidental expenses arising out of (ii) Kidney Failure (End Stage Renal Failure); the disability or incapacitation suffered by the subscriber.] (iii) Primary Pulmonary Arterial Hypertension; [(f) Towards meeting the expenses by subscriber for skill (iv) Multiple Sclerosis; development/re-skilling or for any other self- (v) Major Organ Transplant; development activities, as may be permitted by the (vi) Coronary Artery Bypass Graft; Authority by issuance of appropriate guidelines, in that (vii) Aorta Graft Surgery; behalf.] (viii) Heart Valve Surgery; Page 26 of 32(ix) Stroke; [(g) Towards meeting the expenses by subscriber for (x) Myocardial Infarction establishment of own venture or any start-ups, as may be (xi) Coma; permitted by the Authority by issuance of appropriate (xii) Total blindness; guidelines, in that behalf;] (xiii) Paralysis; (h) repairs and renovation of property damaged due to (xiv) Accident of serious/ life threatening nature. natural calamity; (xv) any other critical illness of a life-threatening nature (i) towards repayment of financial assistance availed by a as stipulated in the circulars, guidelines or notifications subscriber from a regulated financial institution against the issued by the Authority from time to time. lien or the charge marked by the lender on the individual [(e) to meet medical and incidental expenses arising out pension account. of the disability or incapacitation suffered by the subscriber.] (B) Limits: The permitted withdrawal shall be allowed only if the following eligibility criteria and limit for [(f) Towards meeting the expenses by subscriber for availing the benefit are complied with by the subscriber :- skill development/re-skilling or for any other self- (a) the subscriber shall have been in the National Pension development activities, as may be permitted by the System at least for a period of three years from the date of Authority by issuance of appropriate guidelines, in that his or her joining; behalf.] (b) the subscriber shall be permitted to withdraw [(g) Towards meeting the expenses by subscriber for accumulations not exceeding twenty-five per cent of the establishment of own venture or any start-ups, as may contributions made by him or her and standing to his or her be permitted by the Authority by issuance of appropriate credit in his or her individual pension account, as on the guidelines, in that behalf.] date of application for withdrawal; (B) Limits: The permitted withdrawal shall be allowed only if the following eligibility criteria and limit for (C) Frequency: Subject to sub-regulation(1), a subscriber availing the benefit are complied with by the subscriber shall be allowed to withdraw upto a maximum of six times :- prior to attaining the age of sixty years or the date of (a) the subscriber shall have been in the National superannuation/retirement or before completion of fifteen Pension System at least for a period of three years from years in a scheme covered under regulation 4A, such that the date of his or her joining; between one withdrawal and the succeeding one there shall (b) the subscriber shall be permitted to withdraw be a minimum interval of four years. accumulations not exceeding twenty-five per cent of the (1A) In case a subscriber remains in the National Pension contributions made by him or her and standing to his or System beyond the age of sixty years or the date of her credit in his or her individual pension account, as on superannuation/retirement or upon completion of fifteen the date of application for withdrawal; years in a scheme covered under regulation 4A, as the case (C) Frequency: the subscriber shall be allowed to may be, such subscriber shall be eligible to make partial withdraw only a maximum of three times during the withdrawals, not exceeding twenty-five per cent of own entire tenure of subscription under the National Pension contributions available at that point of time of request, upto System. The request for withdrawal shall be submitted a maximum of three times in each financial year during by the subscriber, along with relevant documents to the such period prior to closing of the account, for purposes central recordkeeping agency or the National Pension System Trust, as may be specified, for processing of Page 27 of 32such withdrawal claim through their nodal office. mentioned under sub-regulation (1) or any other Provided that where a subscriber is suffering from any exigencies. illness, specified in sub-clause (d), [of sub-regulation (1B) In case of NPS Vatsalya subscriber, the limits, (1)(A) of Regulation 8, the request for withdrawal may purpose and frequency of partial withdrawal shall be in be submitted, through any family member of such accordance with regulation 4B. subscriber, as specified under the service rules or as may be identified or determined through a document issued by Government.] 31 Regulation (2) [(i) A subscriber having a valid and active tier-II (2) In case of Tier-II account: 8(2) account of the Permanent Retirement Account can (i) a subscriber having a valid and active Tier-II account withdraw the accumulated wealth either in full or part, may withdraw the accumulated wealth either in full or part, at any time by applying for such withdrawal, on such at any time by applying for such withdrawal, on such application form and in such mode and manner, as may application form and in such mode and manner, as may be be specified by the Authority in this behalf. There shall specified by the Authority in this behalf. There shall be no be no limit on such withdrawals till the account has limit on such withdrawals till the account has sufficient sufficient amount of accumulated pension wealth to take amount of accumulated wealth to take care of the care of the applicable charges and the withdrawal applicable charges and the withdrawal amount. amount. Provided that no withdrawal shall be allowed in Tier-II Provided that no withdrawal shall be allowed in Tier-II account activated by the Authority in accordance with account activated by the Authority in accordance with National Pension Scheme Tier II-Tax Saver Scheme, 2020 National Pension Scheme Tier II-Tax Saver Scheme, notified by the Central Government, before the completion 2020 notified by the Central Government, before the of lock-in period specified under the said scheme. completion of lock-in period specified under the said scheme. (ii) The Tier-II account opened with respect to an Individual Pension Account, shall stand automatically (ii) The Tier-II account shall stand automatically closed upon exit and closure of such Individual pension closed at the time of exit of the subscriber from the account at the time of exit of the subscriber from the National Pension System, even if an application so National Pension System, even if an application so specified for the purpose has not been received from the specified for the purpose has not been received from the subscriber, and the accumulated wealth in such account subscriber, and the accumulated wealth in such account shall be transferred to the bank account provided by the shall be transferred to the bank account provided by the subscriber, while submitting his application for exit from the National Pension System. subscriber, while submitting his application for exit from the National Pension System. Provided that except in the case of death of the Provided that except in the case of death of the subscriber, the Tier-II account activated by the subscriber, the Tier-II account activated by the Authority Authority in accordance with National Pension Scheme in accordance with National Pension Scheme Tier II-Tax Tier II-Tax Saver Scheme, 2020 notified by the Central Saver Scheme, 2020 notified by the Central Government Government shall be closed only after completion of shall be closed only after completion of lock-in period lock-in period specified under the said scheme.]] specified under the said scheme. Page 28 of 3232 Regulation Nomination.- Notwithstanding anything contained in 32. Nomination.- Notwithstanding anything contained in 32 these regulations or in any other law for the time being these regulations or in any other law for the time being in in force, a subscriber, at the time of joining the National force, a subscriber, at the time of joining the National Pension System is required to make a nomination, in the Pension System is required to make a nomination, in the specified form, conferring on one or more persons the specified form, conferring on one or more persons the right right to receive the amount that may stand to [the to receive the amount that may stand to the subscriber’s subscriber’s] credit in the accumulated wealth or fund in credit in the accumulated wealth or fund in the event of the the event of [the subscriber’s] death [or the subscriber subscriber’s death or the subscriber missing and presumed missing and presumed dead as per the provisions of the dead as per the provisions of the Bharatiya Sakshya Indian Evidence Act 1872 and amendments thereto], Adhiniyam, 2023, before that amount becomes payable or before that amount becomes payable or having become having become payable has not been paid. The nominee payable has not been paid. The nominee or nominees, or nominees, as the case may be, shall be entitled, on the as the case may be, shall be entitled, on the death of the death of the subscriber or the subscriber missing and subscriber [or the subscriber missing and presumed presumed dead, to receive, to the exclusion of all other dead], to receive, to the exclusion of all other persons, persons, all such moneys which have so remained unpaid: all such moneys which have so remained unpaid: Provided that, - Provided that, - (xii) if the nominee predeceases the subscriber, the (i) if the nominee predeceases the subscriber, the nomination shall so far as it relates to the right nomination shall so far as it relates to the right conferred upon the said nominee, become void and of conferred upon the said nominee, become void and no effect; of no effect; (xiii) where a provision has been duly made in the (ii) where a provision has been duly made in the nomination, in accordance with these regulations, nomination, in accordance with these regulations, conferring upon some other person the right to receive conferring upon some other person the right to all such moneys, which have so remained unpaid, in receive all such moneys, which have so remained the event of the nominee predeceasing the subscriber, unpaid, in the event of the nominee predeceasing the such right shall, upon the nominee being deceased, subscriber, such right shall, upon the nominee being pass to such other persons standing as nominees; deceased, pass to such other persons standing as (xiv) a subscriber may in his nomination distribute the nominees; amount that may stand to his credit in the fund amongst (iii) a subscriber may in his nomination distribute his nominees at his own discretion; the amount that may stand to his credit in the fund (xv) if a subscriber has a family at the time of making amongst his nominees at his own discretion; a nomination, the nomination shall be in favour of one (iv) if a subscriber has a family at the time of or more persons belonging to his family. Any making a nomination, the nomination shall be in nomination made by such subscriber in favour of a favour of one or more persons belonging to his person not belonging to his family shall be invalid; family. Any nomination made by such subscriber in (xvi) a fresh nomination shall be made by the favour of a person not belonging to his family shall subscriber on his marriage and any nomination made be invalid; before such marriage shall be deemed to be invalid; (xvii) if at the time of making a nomination the subscriber has no family, the nomination may be in Page 29 of 32(v) a fresh nomination shall be made by the favour of any person or persons but if the subscriber subscriber on his marriage and any nomination made subsequently acquires a family, such nomination shall before such marriage shall be deemed to be invalid; forthwith be deemed to be invalid and the subscriber shall make a fresh nomination in favour of one or more (vi) if at the time of making a nomination the persons belonging to his family; subscriber has no family, the nomination may be in favour of any person or persons but if the subscriber (xviii) where the nomination is wholly or partly subsequently acquires a family, such nomination in favour of a minor, the subscriber may, for the shall forthwith be deemed to be invalid and the purposes of this Scheme, appoint a major person of his subscriber shall make a fresh nomination in favour family, to be the guardian of the minor nominee in the of one or more persons belonging to his family; event of the subscriber predeceasing the nominee and the guardian so appointed; (vii) where the nomination is wholly or partly in favour of a minor, the subscriber may, for the (xix) where there is no major person in the family, the purposes of this Scheme, appoint a major person of subscriber may, at his discretion, appoint any other his family, to be the guardian of the minor nominee person to be a guardian of the minor nominee; in the event of the subscriber predeceasing the (xx) a nomination made under the National Pension nominee and the guardian so appointed; System may at any time be modified by a subscriber (viii) where there is no major person in the family, after giving a written notice of his intention of doing so the subscriber may, at his discretion, appoint any in the [mode as may be] specified. A nomination or its other person to be a guardian of the minor nominee; modification so made shall take effect to the extent that it is valid on the date on which it is received by the (ix) a nomination made under the National Pension intermediary [or nodal office] under the National System may at any time be modified by a subscriber Pension System; after giving a written notice of his intention of doing so in the [mode as may be] specified. A nomination (xxi) if a subscriber proves that his spouse has ceased, or its modification so made shall take effect to the under the personal law governing him or her, or the extent that it is valid on the date on which it is customary law of the community to which the spouses received by the intermediary [or nodal office] under belong, to be entitled to maintenance he or she shall no the National Pension System; longer be deemed to be a part of the subscriber’s family for the purpose of this Scheme, unless the subscriber (x) if a subscriber proves that his spouse has subsequently intimates by express notice in writing to ceased, under the personal law governing him or her, the designated intermediary for the purpose that he or or the customary law of the community to which the she shall continue to be so regarded; and spouses belong, to be entitled to maintenance he or she shall no longer be deemed to be a part of the (xxii) if a subscriber by notice in writing to the subscriber’s family for the purpose of this Scheme, designated intermediary for the purpose expresses her unless the subscriber subsequently intimates by desire to exclude her husband from the family, the express notice in writing to the designated husband and his parents shall no longer be deemed to intermediary for the purpose that he or she shall be a part of the subscriber’s family for the purpose of continue to be so regarded; and this Scheme, unless the subscriber subsequently cancels in writing any such notice. (xi) if a subscriber by notice in writing to the designated intermediary for the purpose expresses (xii) In respect of subscribers covered under sub- her desire to exclude her husband from the family, clause(c) of Regulation 3 and sub-clause(c) of Page 30 of 32the husband and his dependent parents shall no Regulation 4, where no valid nomination exists in longer be deemed to be a part of the subscriber’s accordance with these regulations, at the time of exit of family for the purpose of this Scheme, unless the such subscriber on account of death, the nomination, if subscriber subsequently cancels in writing any such any existing in the records of such subscriber with his notice. or her employer for the purpose of receiving other admissible terminal benefits shall be treated as [(xii) In respect of subscribers covered under sub- nomination exercised for the purposes of receiving clause(c) of Regulation 3 and sub-clause(c) of benefits under the National Pension System. The Regulation 4, where no valid nomination exists in employer shall send a confirmation of such nomination accordance with these regulations, at the time of exit in its records, to the National Pension System Trust or of such subscriber on account of death, the the central recordkeeping agency, while forwarding the nomination, if any existing in the records of such claim for processing. subscriber with his or her employer for the purpose of receiving other admissible terminal benefits shall Explanation I - For the purposes of [nomination wherever be treated as nomination exercised for the purposes provided in this regulation,]- of receiving benefits under the National Pension (a) the expression “family”, System. The employer shall send a confirmation of such nomination in its records, to the National (ii) in relation to a male subscriber, [shall mean] his Pension System Trust or the central recordkeeping legally wedded wife, his children, whether married or agency, while forwarding the claim for processing.] unmarried, his parents and his deceased son’s widow and children; Explanation I - For the purposes of [nomination wherever provided in this regulation,]- (ii) in relation to a female subscriber, shall mean her legally wedded husband, her children, whether (a) the expression “family”, married or unmarried, her parents, her husband’s (i) in relation to a male subscriber, [shall mean] parents and her deceased son’s widow and children; his legally wedded wife, his children, whether (iii) in relation to any subscriber who does not married or unmarried, his dependent parents and identify themselves as male or female, shall mean his deceased son’s widow and children; their legally wedded spouse, their children, whether (ii) in relation to a female subscriber, [shall mean] married or unmarried, their parents and their her legally wedded husband, her children, whether deceased son’s widow and children; married or unmarried, her dependent parents, her Explanation II –In any of above three, if the child of a husband’s dependent parents and her deceased subscriber or as the case may be, the child of a deceased son’s widow and children; son of the subscriber has been adopted by another person [(iii) in relation to any subscriber who does not and if, under the personal law of the adopter, adoption is identify themselves as male or female, shall mean legally recognized, such a child shall be considered as their legally wedded spouse, their children, excluded from the family of the subscriber. whether married or unmarried, their dependent parents and their deceased son’s widow and children;] Explanation II –In [any of above three], if the child of a subscriber or as the case may be, the child of a deceased son of the subscriber has been adopted by another person Page 31 of 32and if, under the personal law of the adopter, adoption is legally recognized, such a child shall be considered as excluded from the family of the subscriber. 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