An exit is defined as the closure of the individual pension account of the subscriber under the National Pension System. In the following scenarios;

(i). Upon attaining the age of 60 years;

(ii). Before attaining the age of 60 years;

(iii). Due to death; and

(iv). Due to incapacitation or suffering incapability

No

Annuitization – Minimum 40% of accumulated pension wealth will be utilized for monthly annuity or pension.

Lumpsum – Remaining 60% of accumulated pension wealth will be paid to subscriber Provided that the entire accumulated pension wealth will be annuitised in such a manner so as to yield at least a monthly annuity or pension of one thousand rupees and balance if any thereafter shall be paid as lump sum to the subscriber.

Yes – if your accumulated pension wealth is equal to or less than a sum of one lakh rupees

No - the right of the subscriber to receive any annuity or pension under the National Pension System will extinguish.

Yes, you are eligible for exit from NPS in case of incapacitation or suffering incapability.

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).

Same as exiting from NPS upon attaining age of 60 years (refer Q3 to Q5).

Annuitization – Minimum 80% of accumulated pension wealth will be utilized for monthly annuity or pension.

Lumpsum – Remaining 20% of accumulated pension wealth will be paid to subscriber Provided that the entire accumulated pension wealth will be annuitised in such a manner so as to yield at least a monthly annuity or pension of one thousand rupees and balance if any thereafter will be paid as lump sum to the subscriber.

There is no implicit or explicit guarantee that you will receive a monthly annuity or pension of Rs. 1,000/- even with entire accumulated pension wealth. There is a possibility that you may receive monthly annuity or pension of less than Rs. 1,000/- also.

Yes, – if your accumulated pension wealth is equal to or less than a sum of one lakh rupees

Yes, –

(i). if your accumulated pension wealth is equal to or less than a sum of one lakh rupees; and

(ii). if you are not eligible for auto migration to Atal Pension Yojana (APY)

However, you will receive accumulated pension wealth after deducting the Government’s cocontribution with returns thereon.

The entire accumulated pension wealth of the deceased subscriber will be paid to the nominee, or the legal heir of such subscriber.

Yes, the nominee(s) or family members of the deceased subscriber shall have the option to purchase any of the annuities being offered upon exit.

The accumulated pension wealth of deceased subscriber will be paid to the family members on the basis of the legal heir certificate issued by the Revenue authorities of the State concerned or the succession certificate issued by a court of competent jurisdiction.

Yes

Up to 25% of contributions made by the subscriber (without considering the appreciation / returns on the amount) as on date of application of such withdrawal.

You are allowed to partially withdraw maximum of three times before attaining the age of 60 years.

You can initiate first partial withdrawal after completing period of three years from the date of your joining the NPS.

No. However, you will receive 25% of own contribution made between two partial withdrawal.

Partial withdrawal is allowed for the following specific purposes only.

(a). for Higher education of his or her children including a legally adopted child;

(b). for the marriage of his or her children, including a legally adopted child;

(c). for the purchase or construction of a residential house or flat in his or her own name or in a joint name with his or her legally wedded spouse. In case, the subscriber already owns either individually or in the joint name a residential house or flat, other than ancestral property, no withdrawal under these regulations shall be permitted;

(d). for treatment of specified illnesses: if the subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents suffer from any specified illness, which shall comprise of hospitalization and treatment in respect of the following diseases:

(i). Cancer;

(ii). Kidney Failure (End Stage Renal Failure);

(iii). Primary Pulmonary Arterial Hypertension;

(iv). Multiple Sclerosis;

(v). Major Organ Transplant;

(vi). Coronary Artery Bypass Graft;

(vii). Aorta Graft Surgery;

(viii). Heart Valve Surgery;

(ix). Stroke;

(x). Myocardial Infarction

(xi). Coma;

(xii). Total blindness;

(xiii). Paralysis;

(xiv). Accident of serious/ life threatening nature.

(xv). any other critical illness of a life-threatening nature as stipulated in the circulars, guidelines or notifications issued by the Authority from time to time.

(e). to meet medical and incidental expenses arising out of the disability or incapacitation suffered by the subscriber.

(f). Towards meeting the expenses by subscriber for skill development/re-skilling or for any other self-development activities, as may be permitted by the Authority by issuance of appropriate guidelines, in that behalf.

(g). Towards meeting the expenses by subscriber for establishment of own venture or any start-ups, as may be permitted by the Authority by issuance of appropriate guidelines, in that behalf.

The request for withdrawal may be submitted through any family member of such subscriber.

Yes

If a subscriber has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his/her family.

For the purposes of nomination wherever provided in the regulation;

(i). in relation to a male subscriber, shall mean his legally wedded wife, his children, whether married or unmarried, his dependent parents and his deceased son’s widow and children;

(ii). in relation to a female subscriber, shall mean her legally wedded husband, her children, whether married or unmarried, her dependent parents, her husband’s dependent parents and her deceased son’s widow and children;

(iii). in relation to any subscriber who does not identify themselves as male or female - their legally wedded spouse, their children, whether married or unmarried, their dependent parents and their deceased son’s widow and children;

Explanation – 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 and 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.

Any such nomination made in favour of a person not belonging to your family shall be invalid and you (subscriber) have to submit fresh nomination belonging to your family.

Such Nomination shall become void and the subscriber has to submit nomination again.

Yes, you can nominate more than one nominee and can assign percentage of accumulated pension wealth among them in a way that total of such allocation should be equal to 100%.

Yes, a fresh nomination is required to be made by the subscriber upon his/her marriage.

After your marriage, the nomination made prior to your marriage becomes invalid and you have to submit a fresh nomination in favour of one or more persons belonging to your family.

If you have no family at the time of making a nomination, the nomination may be in favour of any person or persons but if you subsequently acquire a family, such nomination shall forthwith be deemed to be invalid and you have to make a fresh nomination in favour of one or more persons belonging to your family.

Yes - the nomination can be wholly or partly in favour of a minor. Further, the subscriber may appoint a major person of his family, to be the guardian of the minor nominee in the event of the subscriber predeceasing the nominee and the guardian.

Yes – if there is no major person in the family

You can change the nomination any number of times.

Annuity means series of payments/benefits to the subscriber at specified intervals as per the choice of subscriber paid by annuity service provider (ASP).

The main objective of an annuity is to give regular income to the subscriber even after retirement/working age.

Yes, except there are some scenarios where the subscriber/nominees/legal heirs can withdraw the whole accumulated pension wealth as mentioned above.

Annuity shall be purchased from Annuity Service Providers (ASPs) empaneled with the PFRDA. The list of 14 ASPs empaneled is as under:

(i). Aditya Birla Sun Life Insurance Company Limited

(ii). Bajaj Allianz Life Insurance Company Limited

(iii). Canara HSBC Life Insurance Company Limited

(iv). Edelweiss Tokio Life Insurance Company Limited

(v). HDFC Life Insurance Company Limited

(vi). ICICI Prudential Life Insurance Company Limited

(vii). IndiaFirst Life Insurance Company Limited

(viii). Kotak Mahindra Life Insurance Company Limited

(ix). Life Insurance Corporation of India

(x). Max Life Insurance Company Limited

(xi). PNB MetLife India Insurance Company Limited

(xii). SBI Life Insurance Company Limited

(xiii). Star Union Dai-ichi Life Insurance Company Limited

(xiv). Tata AIA Life Insurance Company Limited

* For any update in empaneled Annuity Service Providers (ASPs), you are requested to refer PFRDA’s website

Annuity starts immediately after the minimum age as required for purchasing any annuity (depending upon choice of ASP and Annuity scheme for e.g. 30, 35, 38) from any of the empaneled annuity service providers. Subscriber/nominees/legal heirs need not wait till the age of 60 years.

The following are the most common variants that are available: (a). Annuity for life with return of purchase price (amount given to annuity service provider) on death- Subscriber will receive payment of annuity till he/she is alive and payment stops after the death of subscriber. However, purchase price will be returned to nominees / legal heirs.

(b). Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter - On death during the guarantee period – Subscriber will receive payment of annuity till he/she is alive and thereafter during the remaining guaranteed period, annuity will be paid to the nominee till the end of the guaranteed period after which the same ceases/stops. However, return of purchase price will not be returned to nominees / legal heirs. On death after the guarantee period – Subscriber will receive payment of annuity till he/she is alive even after the guaranteed period is over. Payment of annuity stops after the death of the subscriber. However, return of purchase price will not be returned to nominees / legal heirs.

(c). Annuity payable for life - Subscriber will receive payment of annuity till he/she is alive and payment stops after the death of the subscriber. However, return of purchase price will not be returned to nominees / legal heirs.

(d). Annuity for life increasing at simple rate of 3% p.a. – Subscriber will receive payment of annuity till he/she is alive increasing at simple rate of 3% p.a. and payment stops after the death of the subscriber. However, return of purchase price will not be returned to nominees / legal heirs.

(e). Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant/subscriber - Subscriber will receive payment of annuity till he/she is alive and thereafter spouse will receive 50% of payment of annuity till he/she is alive. Payment of annuity stops after the death of spouse. If the spouse predeceases the subscriber, payment of annuity will cease after the death of the annuitant.

It may be noted that this annuity variant may be taken with or without return of purchase price.

(f). Annuity for life with a provision of 100% of the annuity payable to spouse during his/her lifetime on death of the annuitant/subscriber – Subscriber will receive payment of annuity till he/she is alive and thereafter spouse will receive payment of annuity till he/she is alive. Payment of annuity stops after the death of spouse. If the spouse predeceases the subscriber, the annuity ceases after death of the annuitant. It can be with or without return of purchase price.

It may be noted that this annuity variant may be taken with or without return of purchase price.

*Subscriber can also add spouse in any of the variants above.

**All ASPs may not provide all the variants. It may vary from ASP to ASP.

***Pricing of annuity also varies from ASP to ASP.

Only in annuity types where there is a provision of return of purchase price.

Details of annuity rates and other details may be checked on CRAs’ website [ Computer Age Management Services Limited, KFin Technologies Limited and Protean eGov Technologies Limited] and website of respective empaneled ASPs.

Once an annuity is purchased, the option of cancellation or reinvestment with another Annuity Service Provider or in other annuity scheme shall not be allowed unless the same is within the time limit specified by the Annuity Service Provider, for the free look period as provided in the terms of the annuity contract or specifically provided by the Insurance Regulatory and Development Authority.

Lump sum Withdrawal - In case of exit upon attaining the age of 60 years or superannuation lump sum withdrawal i.e. 60% of the total accumulated pension wealth is tax exempted.

Annuity - The amount utilized for purchase of annuity at exit upon attaining the age of 60 years or superannuation is tax exempted. However, the annuity income (pension) received will be taxed in the year of receipt as per the applicable tax slab of the subscriber.

Partial Withdrawal – The amount received by employee under the NPS is tax exempted