**Executive Summary**
This press release, dated December 19, 2025, announces amendments to the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015. The amendments primarily target the non-government sector (All Citizen Model and Corporate Sector), aiming to provide subscribers with greater flexibility and autonomy in investment decisions. These revisions are effective immediately.
**Key Points / Main Content**
* **General Applicability:**
* Changes are applicable uniformly to Common Schemes (CS) and Multiple Scheme Framework (MSF).
* Amendments aim to rationalize provisions for the government sector as well.
* **Non-Government Sector (All Citizen Model and Corporate Sector):**
* *Lock-in Period:*
* The minimum lock-in period for premature exit has been removed for the All Citizen Model.
* *Normal Exit:*
* For the All Citizen Model, the vesting period is now 15 years or till 60 years of age, whichever is earlier.
* For the Corporate Sector, the vesting period remains till the age of retirement/superannuation.
* *Lumpsum and Annuity:*
* Subscribers can withdraw up to 80% as a lumpsum, with at least 20% for annuity.
* For a corpus of ₹8 lakh or less, 100% lumpsum, SLW or SUR is permitted.
* Specific conditions apply to corpus amounts exceeding ₹8 lakh and ₹12 lakh regarding the combination of lumpsum and SUR.
* *Premature Exit:*
* For corpus less than or equal to ₹5 lakh, 100% lumpsum or SLW or SUR is permitted.
* *Exit due to Death:*
* 100% lumpsum is permitted with option for annuity, if desired. The option for availing SLW or SUR is additionally provided.
* **Individuals Joining NPS After Age of 60 years (All Citizen Model):**
* *Normal Exit:*
* The vesting period of 3 years has been removed.
* *Lumpsum and Annuity:*
* Subscribers can withdraw up to 80% as a lumpsum, with at least 20% for annuity.
* For a corpus of ₹12 lakh or less, 100% lumpsum or SLW or SUR is permitted.
* Specific conditions apply to corpus amounts exceeding ₹12 lakh regarding the combination of lumpsum and SUR.
* *Premature Exit:*
* Not applicable due to the removal of the vesting period.
* *Exit due to Death:*
* 100% lumpsum is permitted with option for annuity, if desired. The option for availing SLW or SUR is additionally provided.
* **Government Sector:**
* *Lumpsum and Annuity:*
* Subscribers can withdraw up to 60% as a lumpsum, with at least 40% for annuity (Remains same).
* For a corpus of ₹8 lakh or less, 100% lumpsum or SLW or SUR is permitted.
* Specific conditions apply to corpus amounts exceeding ₹8 lakh and ₹12 lakh regarding the combination of lumpsum and SUR.
* **Other Changes:**
* *Entry and Exit Age:*
* Entry and Exit Age increased to 85 years.
* *Automatic Continuation:*
* 15-day prior intimation requirement removed across sectors, hence subscribers can automatically continue under NPS.
* *Specific Purpose Scheme:*
* New regulation enabling exit/withdrawal provisions for 'specific purpose schemes' under NPS.
* *Financial Assistance Against Pension Corpus:*
* Subscribers 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 the subscriber's own contribution.
* *Frequency of Partial Withdrawal:*
* Before 60 years of age / superannuation, the frequency is 4 times, with an interval of 4 years between two withdrawals.
* **NPS-Lite:**
* *Normal Exit:*
* Up to 60% lumpsum (remains same).
* *Lumpsum and Annuity:*
* For a corpus of ₹2 lakh or less, 100% lumpsum is permitted.
* Subscribers can withdraw up to 60% as a lumpsum, with at least 40% for annuity for Corpus above ₹2 lakh.
**Impact Analysis**
* **NPS Subscribers (All Sectors)**
* **Impact:** Increased flexibility in exit and withdrawal options, potentially leading to better management of retirement funds and improved financial planning.
* **Action Required:** Review personal NPS accounts and understand the new provisions to make informed decisions about investment and withdrawal strategies.
* **Pension Fund Managers/Regulated Financial Institutions**
* **Impact:** Need to align their processes and systems with the amended regulations, including facilitating financial assistance options for subscribers.
* **Action Required:** Update internal policies and procedures to comply with the new regulations and provide appropriate information and support to subscribers.
Key Entities Referenced
Pension Fund Regulatory and Development Authority (PFRDA): The regulatory body responsible for promoting and regulating the National Pension System (NPS) in India.
PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015: The primary policy document being amended, governing the exit and withdrawal rules for the National Pension System (NPS).
National Pension System (NPS): A government-sponsored pension scheme in India designed to provide old-age income security to subscribers.
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/