Saturday, 16 March 2013

Pension scheme allows lump sum withdrawal on exit

NEW DELHI: Subscribers of the New Pension Scheme can now time the withdrawal of their money when leaving the income security plan, the pension fund regulator has said, moving away from the earlier facility of phased withdrawal.

The decision, announced by the Pension Fund Regulatory and Development Authority (PFRDA) on Thursday, comes into effect immediately.

It follows a feedback from stakeholders that subscribers should be given the option to defer or time the entire lump sum withdrawal (a maximum of 60%) at the time of exit from the scheme.

"The matter has been examined by the Authority and it has been decided to replace the 'phased withdrawal' option currently available with a 'deferred withdrawal' option, whereby the subscriber can time the lump sum withdrawal allowed under NPS (New Pension Scheme) at the time of exit, with immediate effect," the regulator said.


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