**Executive Summary**
The Pension Fund Regulatory and Development Authority (PFRDA) has announced amendments to the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015. These changes primarily target the non-government sector (All Citizen Model and Corporate Sector), applying uniformly to Common Schemes and the Multiple Scheme Framework (MSF). The measures aim to provide subscribers greater flexibility, choice, and autonomy in managing their accumulated pension wealth. The effective date of these amendments is December 19, 2025.
**Key Points / Main Content**
* **Non-Government Sector (All Citizen Model and Corporate Sector)**
* **Lock-in Period:**
* All Citizen Model (CS & MSF): Minimum lock-in period removed for premature exit.
* **Normal Exit:**
* All Citizen Model (CS & MSF): Vesting period is now 15 years or till 60 years of age (whichever is earlier).
* Corporate Sector (CS and MSF): Vesting period remains till age of retirement / superannuation.
* All Citizen Model & Corporate Sector (CS & MSF): Lumpsum withdrawal increased to 80%, with at least 20% annuity.
* All Citizen Model & Corporate Sector (CS & MSF): For corpus <= ₹8 lakh, 100% lumpsum or SLW or SUR (or) Up to 80% lumpsum & At least 20% annuity
For corpus > ₹8 lakh <= ₹12 lakh, Up to ₹6 lakh as lumpsum and balance as SUR for min. 6 years or annuity. (or) Up to 80% lumpsum & At least 20% annuity
For corpus > ₹12 lakh, Up to 80% lumpsum & At least 20% annuity
* **Premature Exit:** Not specified in this section.
* **Exit due to Death:**
* All Citizen Model & Corporate Sector (CS & MSF): 100% lumpsum; Option for annuity, if desired. Additionally, option for availing SLW or SUR.
* **Individuals joining NPS after age of 60 years (All Citizen Model)**
* **Normal Exit:** Vesting period is removed.
* Lumpsum withdrawal increased to 80%, with at least 20% annuity.
* For corpus < ₹12 lakh, 100% lumpsum or SLW or SUR. (or) Up to 80% lumpsum & At least 20% annuity. For corpus > ₹12 lakh: Up to 80% lumpsum & At least 20% annuity
* **Premature Exit:** Not applicable as vesting period is removed.
* **Exit due to Death:** 100% lumpsum permitted; Option for annuity, if desired. Additionally, option for availing SLW or SUR.
* **Government Sector**
* **Normal Exit:** Lumpsum withdrawal remains at up to 60%, with at least 40% annuity.
* For corpus ≤ ₹8 lakh: 100% lumpsum or SLW or SUR. (or) Up to 60% lumpsum & At least 40% annuity
* For corpus > ₹8 lakh ≤ ₹12 lakh: Up to ₹6 lakh as lumpsum and balance as SUR for min. 6 years or annuity. (or) Up to 60% lumpsum & At least 40% annuity
* For corpus > ₹12 lakh: Up to 60% lumpsum & At least 40% annuity
* **Premature Exit:** Lumpsum withdrawal remains at up to 20%, with at least 80% annuity.
* For corpus ≤ ₹5 lakh: 100% lumpsum or SLW or SUR. (or) Up to 20% lumpsum & At least 80% annuity.
* For corpus > ₹5 lakh: Up to 20% lumpsum & At least 80% annuity
* **Exit due to Death:** Lumpsum withdrawal remains at up to 20%, with at least 80% annuity.
* **Other Changes**
* Entry and exit age increased to 85 years.
* 15-day prior intimation requirement removed across sectors, hence subscribers can automatically continue under NPS.
* New regulation enabling exit/withdrawal provisions for 'specific purpose schemes' under NPS. To be governed by Guidelines issued by the Authority for each such scheme.
* **Frequency of Partial Withdrawal**
* Before 60 years age / superannuation (whichever is later):
Frequency: 4 times. Interval: 4 years between two withdrawals.
* Post 60 years age / superannuation (whichever is later):
Frequency: NA. Interval: 3 years between two withdrawals.
* Treatment of specified illness broadened to medical treatment/hospitalization without a specified list (for subscriber/spouse/children/parents).
* Removed Skill development, re-skilling, self-development activities (for subscriber).
**Impact Analysis**
**Subscribers (Non-Government & Government):**
* **Impact:** Increased flexibility and autonomy in investment decisions and managing accumulated pension wealth, especially regarding exit and withdrawal options.
* **Action Required:** Review their NPS accounts and consider adjusting their investment strategy and exit plans based on the amended regulations.
**Pension Fund Managers:**
* **Impact:** Need to adjust their processes and systems to accommodate the new exit and withdrawal rules, as well as the increased flexibility for subscribers.
* **Action Required:** Update operational procedures, IT systems, and customer service protocols to align with the amended regulations.
**Regulated Financial Institutions:**
* **Impact:** May see an increase in requests for financial assistance from subscribers using their NPS benefits as collateral.
* **Action Required:** Develop guidelines and procedures for providing financial assistance to NPS subscribers, ensuring compliance with PFRDA regulations.
**PFRDA (Pension Fund Regulatory and Development Authority):**
* **Impact:** Responsible for overseeing the implementation of the amended regulations and ensuring compliance by all stakeholders.
* **Action Required:** Monitor the impact of the amendments on the NPS and make adjustments as necessary to ensure the system's effectiveness and sustainability.
Key Entities Referenced
PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015: The primary subject of the document: amendments to the regulations governing exits and withdrawals under the National Pension System.
Pension Fund Regulatory and Development Authority (PFRDA): The regulator that notified the amendments to the regulations.
National Pension System (NPS): The pension scheme to which the amended regulations apply.
Ministry of Finance: The ministry under whose purview the PFRDA operates and which is responsible for the document's release.
All Citizen Model: One of the sectors/schemes within the National Pension System to which the amendments apply.
Ministry of Finance
Key amendments in PFRDA (Exits and
Withdrawals under the NPS) Regulations, 2015
Amendments primarily aimed at the non-government sector,
also rationalize provisions for government sector
Measures to provide subscribers greater flexibility, choice
and autonomy in investment decisions and aid managing
accumulated pension wealth
प्रव तथ: 19 DEC 2025 8:16PM by PIB Delhi
In furtherance of its mandate to promote old-age income security and protect the interests of subscribers, t
he Pension Fund Regulatory and Development Authority (PFRDA) has notified amendments to the PFRD
A (Exits and Withdrawals under the National Pension System) Regulations, 2015, today.
The amendments are primarily aimed at the non-government sector (All Citizen Model and Corporate
Sector), applicable uniformly to both Common Schemes and the Multiple Scheme Framework (MSF),
while also rationalizing certain provisions for the government sector. Finalized after extensive stakeholder
consultations, these measures aim to provide subscribers greater flexibility, choice and autonomy in
investment decisions and managing their accumulated pension wealth, recognizing that non-government
NPS participation is voluntary. Clear and well-structured exit provisions are expected to encourage entry
and sustain participation by balancing subscriber needs and pension objectives across different stages of
their life cycle.
Overall, the amendments reflect evolving subscriber needs and seeks to make the NPS more inclusive,
responsive and subscriber-friendly, while safeguarding long-term retirement income security. The key
areas that have been revised are outlined below in a comparative tabular format:
Sl. Earlier stipulation Revised stipulation
I. Non-Government Sector (All Citizen Model and Corporate Sector)
Changes applicable uniformly to Common Schemes (CS) & Multiple Scheme Framework (MSF)
Lock-in periodSl. Earlier stipulation Revised stipulation
1 All Citizen Model: All Citizen Model (CS & MSF):
Minimum lock-in period to be Minimum lock-in period removed
eligible for premature exit → 5
years
Normal Exit
2 All Citizen Model: All Citizen Model (CS & MSF):
Vesting period → Till 60 years of Vesting period → 15 years or till 60 years of age (whichever
age to be eligible for normal exit is earlier).
3 Corporate Sector: Corporate Sector (CS and MSF):
Vesting period → Till age of Vesting period → Till age of retirement / superannuation
retirement / superannuation
(Remains same)
4 All Citizen Model & Corporate All Citizen Model & Corporate Sector (CS & MSF):
Sector:
Up to 80% lumpsum;
Up to 60% lumpsum;
At least 20% annuity
At least 40% annuity
5 All Citizen Model & Corporate All Citizen Model & Corporate Sector (CS & MSF):
Sector:
a) Corpus ≤ ₹8 lakh:
For corpus ≤ ₹5 lakh → 100%
100% lumpsum or SLW or SUR
lumpsum
(or)
Up to 80% lumpsum & At least 20% annuity
b) Corpus > ₹8 lakh ≤ ₹12 lakh:
Up to ₹6 lakh as lumpsum and balance as SUR for min. 6
years or annuity.
(or)
Up to 80% lumpsum & At least 20% annuity
c) Corpus > ₹12 lakh:
Up to 80% lumpsum & At least 20% annuity
Premature ExitSl. Earlier stipulation Revised stipulation
6 All Citizen Model & Corporate All Citizen Model & Corporate Sector (CS & MSF):
Sector:
Up to 20% lumpsum;
Up to 20% lumpsum;
At least 80% annuity (Remains same)
At least 80% annuity
7 All Citizen Model & Corporate All Citizen Model & Corporate Sector (CS & MSF):
Sector:
a) Corpus ≤ ₹5 lakh:
For corpus ≤ ₹2.5 lakh → 100%
100% lumpsum or SLW or SUR
lumpsum
(or)
Up to 20% lumpsum & At least 80% annuity
b) Corpus > ₹5 lakh:
Up to 20% lumpsum & At least 80% annuity
Exit due to Death
8 All Citizen Model & Corporate All Citizen Model & Corporate Sector (CS & MSF):
Sector:
100% lumpsum; Option for annuity, if desired.
100% lumpsum; Option for
(Remains same)
annuity, if desired.
Additionally, option for availing SLW or SUR.
II. Individuals joining NPS after age of 60 years (All Citizen Model)
Normal Exit
9 Vesting period → 3 years to be Vesting period removed
eligible for normal exit
10 Up to 60% lumpsum; Up to 80% lumpsum;
At least 40% annuity At least 20% annuitySl. Earlier stipulation Revised stipulation
11 For corpus ≤ ₹5 lakh → 100% a) Corpus ≤ ₹12 lakh:
lumpsum
100% lumpsum or SLW or SUR.
(or)
Up to 80% lumpsum & At least 20% annuity
b) Corpus > ₹12 lakh:
Up to 80% lumpsum & At least 20% annuity
Premature Exit
12 Up to 20% lumpsum; Not applicable as the vesting period has been removed
At least 80% annuity
Exit due to Death
13 100% lumpsum permitted; Option 100% lumpsum permitted; Option for annuity, if desired.
for annuity, if desired. (Remains same)
Additionally, option for availing SLW or SUR.
III. Government Sector
Normal Exit
14 Up to 60% lumpsum; Up to 60% lumpsum;
At least 40% annuity At least 40% annuity; (Remains same)Sl. Earlier stipulation Revised stipulation
15 For corpus ≤ ₹5 lakh → 100% a) Corpus ≤ ₹8 lakh:
lumpsum
100% lumpsum or SLW or SUR
(or)
Up to 60% lumpsum & At least 40% annuity
b) Corpus > ₹8 lakh ≤ ₹12 lakh:
Up to ₹6 lakh as lumpsum and balance as SUR for min. 6
years or annuity.
(or)
Up to 60% lumpsum & At least 40% annuity
c) Corpus > ₹12 lakh:
Up to 60% lumpsum & At least 40% annuity
Premature Exit
16 Up to 20% lumpsum; Up to 20% lumpsum;
At least 80% annuity At least 80% annuity; (Remains same)
17 For corpus ≤ ₹2.5 lakh → 100% a) Corpus ≤ ₹5 lakh:
lumpsum
100% lumpsum or SLW or SUR
(or)
Up to 20% lumpsum & At least 80% annuity
b) Corpus > ₹5 lakh:
Up to 20% lumpsum & At least 80% annuity
Exit due to Death
18 Up to 20% lumpsum; Up to 20% lumpsum;
At least 80% annuity At least 80% annuity; (Remains same)Sl. Earlier stipulation Revised stipulation
19 For corpus ≤ ₹5 lakh → 100% a) Corpus ≤ ₹8 lakh:
lumpsum
100% lumpsum or SLW or SUR
(or)
Up to 20% lumpsum & At least 80% annuity
b) Corpus > ₹8 lakh ≤ ₹12 lakh:
Up to ₹6 lakh as lumpsum and balance as SUR for min. 6
years or annuity.
(or)
Up to 20% lumpsum & At least 80% annuity
c) Corpus > ₹12 lakh:
Up to 20% lumpsum & At least 80% annuity
IV. Other changes
Entry and Exit Age
20 Maximum entry age up to 70 Entry and exit age increased to 85 years.
years; exit age up to 75 years.
Automatic continuation
21 Subscriber to intimate 15 days 15-day prior intimation requirement removed across sectors,
prior to 60 / superannuation for hence subscribers can automatically continue under NPS.
continuation (Govt) or deferment
of annuity and/or lumpsum (Govt
& Non-Govt).
Specific Purpose Scheme
22 - a. New regulation enabling exit/withdrawal provisions
for ‘specific purpose schemes’ under NPS.
b. To be governed by Guidelines issued by the Authority
for each such scheme.
Financial assistance against pension corpusSl. Earlier stipulation Revised stipulation
23 Assignment or pledge of NPS a. Subscriber can seek financial assistance from a
benefits void except where regulated financial institution and the lender may
permitted by NPS Trust. mark lien or charge on the individual pension account
up to 25% of subscriber’s own contribution (i.e.
within partial withdrawal limits).
b. To be governed by Guidelines issued by the Authority.
Frequency of Partial Withdrawal
24 During the tenure of subscription i) Before 60 years age / superannuation (whichever is later):
(i.e. before exit) →
a. Frequency: 4 times
a. Frequency: 3 times. b. Interval: 4 years between two withdrawals
b. Interval not stipulated
between two withdrawals
ii) Post 60 years age / superannuation (whichever is later):
a. Frequency: NA
b. Interval: 3 years between two withdrawals
Purpose of Partial Withdrawal
25 Purchase or construction of a No change, but additionally clarified it as a one-time
residential house permitted if withdrawal.
subscriber does not already own a
house (other than ancestral
property).
Treatment of specified illness Broadened to medical treatment/hospitalization without a
limited to a comprehensive list of specified list (for subscriber/spouse/children/parents).
specified critical illnesses (for
subscriber / spouse / children /
parents).
Skill development, re-skilling, Removed
self-development activities (for
subscriber).
Establishing a start-up or own Removed
venture (for subscriber).
New purpose New purpose added: Settlement of a financial obligation of
the subscriber taken from a regulated financial institution
against lien/charge on NPS account.Sl. Earlier stipulation Revised stipulation
V. NPS-Lite
Normal Exit
26 Up to 60% lumpsum; Up to 60% lumpsum;
At least 40% annuity At least 40% annuity; (Remains same)
27 For corpus ≤ ₹1 lakh → 100% a) Corpus ≤ ₹2 lakh:
lumpsum
100% lumpsum (or)
Up to 60% lumpsum & At least 40% annuity
b) Corpus > ₹2 lakh:
Up to 60% lumpsum & At least 40% annuity
Premature Exit
28 Up to 20% lumpsum; Up to 20% lumpsum;
At least 80% annuity At least 80% annuity; (Remains same)
29 For corpus ≤ ₹1 lakh → 100% a) Corpus ≤ ₹2 lakh:
lumpsum
100% lumpsum (or)
Up to 20% lumpsum & At least 80% annuity
b) Corpus > ₹2 lakh:
Up to 20% lumpsum & At least 80% annuity
Exit due to Death
30 100% lumpsum permitted; Option 100% lumpsum permitted; Option for annuity, if desired.
for annuity, if desired. (Remains same)
Note 1:
1. Normal Exit → Exit upon,
i. Completing 15 years of subscription or 60 years of age (whichever is earlier) (All citizen model);
ii. Superannuation / retirement (Government and Corporate Sector)
2. Vesting period → Period of subscription required to become eligible for Normal Exit
3. Premature Exit → Exit prior to completion of vesting period
4. Lock-in period → Period of subscription required to become eligible for Premature Exit
5. SLW → Systematic Lumpsum Withdrawal6. SUR → Systematic Unit Withdrawal
Note 2:
The changes tabulated above are some of the broad key amendments (indicative but not exhaustive)
effected in the Exit Regulations. For complete detailed changes, PFRDA (Exits and withdrawals under the
NPS) (Amendment) Regulations, 2025 may be referred @ https://www.pfrda.org.in/
*****
NB/PK
(रलीज़ आईडी: 2206763) आगंतुक पटल : 2920
इस वज्ञ को इन भाषाओ ंम पढ़: ही