**Executive Summary**
This document is a press release from the Pension Fund Regulatory and Development Authority (PFRDA) dated December 19, 2025, announcing key amendments to the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015. The amendments aim to provide greater flexibility, choice, and autonomy to subscribers in managing their accumulated pension wealth, particularly in the non-government sector. The changes are effective immediately.
**Key Points / Main Content**
* **Scope of Amendments:**
* Primarily aimed at the non-government sector (All Citizen Model and Corporate Sector).
* Applicable uniformly to both Common Schemes (CS) and the Multiple Scheme Framework (MSF).
* Rationalizes certain provisions for the government sector.
* **Lock-in Period (Non-Government Sector):**
* For All Citizen Model (CS & MSF): Minimum lock-in period removed.
* **Normal Exit (Non-Government Sector):**
* 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.
* **Lumpsum and Annuity (Non-Government Sector):**
* All Citizen Model & Corporate Sector (CS & MSF): Up to 80% lumpsum, at least 20% annuity.
* Specific rules based on corpus amount for All Citizen Model & Corporate Sector (CS & MSF) outlining options for 100% lumpsum, Systematic Lumpsum Withdrawal (SLW), or Systematic Unit Withdrawal (SUR).
* **Premature Exit (Non-Government Sector):**
* All Citizen Model & Corporate Sector (CS & MSF): Up to 20% lumpsum, at least 80% annuity (Remains same)
* Specific rules based on corpus amount for All Citizen Model & Corporate Sector (CS & MSF) outlining options for 100% lumpsum, Systematic Lumpsum Withdrawal (SLW), or Systematic Unit Withdrawal (SUR).
* **Exit Due to Death (Non-Government Sector):**
* All Citizen Model & Corporate Sector (CS & MSF): 100% lumpsum; Option for annuity, if desired (Remains same).
* Additionally, option for availing SLW or SUR.
* **Individuals Joining NPS After Age of 60 (All Citizen Model):**
* Vesting period removed.
* Specific rules outlining lumpsum and annuity amounts based on corpus amount.
* **Government Sector:**
* Normal Exit: Up to 60% lumpsum, At least 40% annuity; (Remains same). Specific rules outlining lumpsum and annuity amounts based on corpus amount.
* **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.
* Subscriber can seek financial assistance from a regulated financial institution and the lender may mark lien or charge on the individual pension account up to 25% of subscriber's own contribution (i.e. within partial withdrawal limits).
* Frequency of partial withdrawal changed to 4 times with 4 years of interval.
* New purpose added: Settlement of a financial obligation of the subscriber taken from a regulated financial institution against lien/charge on NPS account.
**Impact Analysis**
**Subscribers (All Sectors):**
* **Impact:** Increased flexibility and choice in managing their NPS accounts, particularly concerning exit and withdrawal options. Rationalized withdrawal rules.
* **Action Required:** Review their NPS plans and understand the new rules related to lock-in periods, normal and premature exits, lumpsum withdrawals, and annuity options to make informed decisions about their investments and retirement planning.
**Financial Institutions:**
* **Impact:** New ability to offer assistance to NPS subscribers.
* **Action Required:** To provide financial assistance in accordance with PFRDA guidelines.
Key Entities Referenced
Pension Fund Regulatory and Development Authority (PFRDA): The regulator responsible for promoting and regulating pension schemes in India.
PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015: The primary regulations being amended concerning exits and withdrawals from the National Pension System.
National Pension System (NPS): A pension scheme in India regulated by PFRDA, aimed at providing old-age income security.
PRESS RELEASE
Key amendments in PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015
New Delhi, 19 December, 2025 - In furtherance of its mandate to promote old-age income security and
protect the interests of subscribers, the Pension Fund Regulatory and Development Authority (PFRDA) has
notified amendments to the PFRDA (Exits and Withdrawals under the National Pension System)
Regulations, 2015.
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 period
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 is
age to be eligible for normal exit 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)Sl. Earlier stipulation Revised stipulation
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 Exit
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 annuity, (Remains same)
if desired. Additionally, option for availing SLW or SUR.Sl. Earlier stipulation Revised stipulation
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% annuity
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)
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% annuitySl. Earlier stipulation Revised stipulation
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)
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 years; Entry and exit age increased to 85 years.
exit age up to 75 years.
Automatic continuation
21 Subscriber to intimate 15 days prior 15-day prior intimation requirement removed across sectors,
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.Sl. Earlier stipulation Revised stipulation
b) To be governed by Guidelines issued by the Authority for
each such scheme.
Financial assistance against pension corpus
23 Assignment or pledge of NPS a) Subscriber can seek financial assistance from a regulated
benefits void except where permitted financial institution and the lender may mark lien or charge
by NPS Trust. 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 limited Broadened to medical treatment/hospitalization without a
to a comprehensive list of specified specified list (for subscriber/spouse/children/parents).
critical illnesses (for subscriber /
spouse / children / parents).
Skill development, re-skilling, self- Removed
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.
V. NPS-Lite
Normal Exit
26 Up to 60% lumpsum; Up to 60% lumpsum;Sl. Earlier stipulation Revised stipulation
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 Withdrawal
6. 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/