When can a subcriber exit from NPS?

For subscribers joining between 18-60 years:

• Upon attainment of the age of 60 years: At least 40% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance (60%) is paid as a lump sum payment to the subscriber. If the total corpus is not exceeding Rs. 2 lakhs, then the subscriber has the option to withdraw the whole corpus in lumpsum.

• Upon Death (irrespective of cause): The entire accumulated pension wealth (100%) would be paid to the nominee / legal heir of the subscriber and there would not be any purchase of annuity/monthly pension. The nominee, if so wishes, has the option to purchase an annuity of the total corpus. 

• Exit from NPS before attainment of the age of 60 years (irrespective of cause): At least 80% of the accumulated pension wealth of the subscriber needs to be utilized for purchase of an annuity providing for the monthly pension of the subscriber and the balance (20%) is paid as a lump sum payment to the subscriber. If the total corpus is not exceeding Rs. 1 lakhs then the subscriber has the option to withdraw the whole corpus in lumpsum. A subscriber can exit from NPS only after completion of a minimum of 10 years in NPS.

For subscribers joining between 60-65 years:

The exit conditions for subscribers joining the NPS beyond the age of 60 years in the NPS –Private Sector will be as under:

• Normal exit: The subscriber exiting after completion of 3 years from the date of joining NPS. In the normal exit, the subscriber will be required to annuitize at least 40% of the corpus for purchase of annuity and the remaining corpus can be withdrawn in a lumpsum. In case the accumulated corpus at the time of exit is equal or less than Rs. 2 lacs, the subscriber will have the option to withdraw the entire corpus in a lumpsum.

• Premature Exit: Any exit before completion of 3 years will be treated as a premature exit. In such case, the subscriber will be required to annuitize at least 80% of the corpus for purchase of annuity and the remaining corpus can be withdrawn in a lumpsum. In case the accumulated corpus at the time of exit is equal or less than Rs. 1 lakh, the subscriber will have the option to withdraw the entire corpus in a lumpsum.

• Exit due to the death of the subscriber: The entire corpus shall be payable to the nominee of the subscriber. The subscribers would be able to purchase the annuities directly from the empanelled Annuity Service Providers as per their choice of annuity that is available in the market/with the ASPs.