Investment needs are unique to each and every Individual. No single financial plan would be suitable to everyone. It is necessary, that awareness is created. Such awareness ,created and understood , is the Individual’s responsibility, who undertake decisions and apply the same to their situations. This website or any Individual or entity related with this website , would not take or assume any liability towards the decisions undertaken by such individuals. Individuals are encouraged to make inquiries, validate such information, from available resources on both online and offline content , before undertaking any financial decisions.       This website does not charge any fees for such services rendered. Information sought and sharing of such information is permissions based . The website focuses only on the NPS All Citizen model and the Corporate model only as more awareness needs to be created on this models. Government model and the erstwhile NPS swavalamban model (Now Atal Pension Yojana ) are already being undertaken by the Government agencies through their own network and marketing channels.

Exit from NPS

Exit from the National Pension System are notified vide the above extra ordinary gazette published on 11/5/2015. The information has been put on the PFRDA website on June 8th, 2015. In line with the policies of NPSBOOTH, the information given in this content is applicable to the All India Citizen and Corporate models of the NPS. This is an exhaustive and a very important regulation. A copy of the regulations is attached herewith at end of the content. Visitors to the website are requested to go through for more information by downloading the copy. Please do not print the same unless very necessary. Please note that the term ‘Exit ‘from the NPS, means, separation from the National Pension system on account of situations and conditions. Please refer to the below table for an initial understanding. The detailed note of the PFRDA regulation is attached herewith in the last column. It is the same for Exits and Withdrawals. In the case of withdrawals, it means withdrawal of amount from the pensionable wealth (Corpus) accumulated lying in the PRAN account at that point of time.

Important points of the above circular :

The above regulations is divided into the following chapters.

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Serial No Chapter Topic covered in the regulation
1 I Preliminary definitions
2 II Exit from the National pension system for all the models
3 III Withdrawals , Purpose , Frequency and limits under the NPS
4 IV Annuity Purchase and Annuity service providers
5 V Inspection and Audit
6 VI Conduct of Inquiry
7 VII Miscellaneous


  • The minimum period for the subscriber to be invested in the NPS is for a period of at least 10 years.
  • The Corporate subscriber can exit out of the NPS ,if the date of superannuation is 58 years if the superannuation is fixed at 58 years. They can withdraw 60% in lump sum and annuitize the remaining 40%. They can take advantage of the time value of money . In the case of the normal citizen ,the retirement age is now 60 years.
  • The subscriber can contribute and be invested in the NPS till 70 years. They can however not continue beyond 70 years.
  • There is no change in the premature exit of NPS where the regulations have not got modified
  • There is no impact on the TIER 2 account , on account of the above rules and regulations

Note: Please pay importantce to the language . It is very necessary for interpretation.

Applicable to only the All India Citizen and the corporate model.

Exits from the National Pension System for the TIER 1 account ( Retirement Account ) .

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Serial number Situation Conditions by PFRDA / NPS trust Options available in this category after Applicable Charges on such actions.
1 Where a subscriber attains the age of sixty years or superannuates in accordance with the service rules applicable to such subscriber.
The word “ Superannuates “ is another word for retirement.
  1. • At least or minimum forty percent (40%), out of the accumulated pension wealth of such subscriber shall be mandatorily utilized for purchase of annuity providing for a monthly or any other periodical pension.

  2. • The balance of the accumulated pension wealth, after such utilization, shall be paid to the subscriber in lump sum.

  3. • In case, the accumulated pension wealth of the subscriber is equal to or less than a sum of two lakh rupees, the subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity.

  4. • All lumpsum amounts withdrawn are taxable on receipt basis , based on the tax bracket of such individuals.

  1. i. The subscriber can continue to subscribe to the National Pension System beyond the age of sixty years or the age of superannuation, so specified, by intimating in writing, the age, not exceeding seventy years, until which he would like to contribute to his individual pension account.

  2. ii. The subscriber shall have the option to defer the withdrawal of lump sum amount until he or she attains the age of seventy years, provided the subscriber intimates his or her intention to do so in writing in the specified form at least fifteen days before the attainment of age of sixty years or, the age of superannuation, as the case may be, to the National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose.

  3. iii. The subscriber shall have the option to defer the purchase of annuity for a maximum period of three years, from the date of attainment of sixty years of age or the age of superannuation, as the case may be, provided the subscriber intimates his or her intention to do so in writing in the specified form at least fifteen days before the attainment of age of sixty years or the age of superannuation, as the case may be, to the National Pension System Trust or any intermediary or other entity authorized by the Authority for this purpose.
The subscriber shall be allowed to continue to subscribe, defer the withdrawal of lump sum amount or the purchase of annuity, as the case may be, provided the subscriber agrees to bear the maintenance charges of the Permanent Retirement Account, including the charges payable to the central recordkeeping agency, pensionfund, Trustee Bank or any other intermediary, as may be applicable from time to time.
2 Where the subscriber who, before attaining the age of sixty years or the age of superannuation as prescribed by service rules exercises the option for exit
  1. • The option so exercised shall be allowed only upon such subscriber having subscribed to the national pension system for at least a minimum period of ten years.

  2. • In case of such subscriber, at least eighty percent out of the accumulated pension wealth shall be mandatorily utilized for purchase of annuity and the balance of the accumulated pension wealth, after such utilization, shall be paid to the subscriber in lump sum.

  3. • Provided that if the accumulated pension wealth of the subscriber is more than one lakh rupees but the age of the subscriber is less than the minimum age required for purchasing any annuity from any of the empanelled annuity service providers as chosen by such subscriber, such subscriber shall continue to subscribe to the National Pension System, until he or she attains the age of eligibility for purchase of any annuity.

  4. • Provided further that if the accumulated pension wealth in the Permanent Retirement Account of thesubscriber is equal to or less than one lakh rupees, such subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity.
There are no options or any further points to be discussed or highlighted here. All charges would be recovered in the normal process .
3 Where the subscriber who, before attaining the age of sixty years or the age of superannuation as prescribed by the respective service rules applicable to him or her, dies The entire accumulated pension wealth of the subscriber , shall be paid to the nominee or nominees or legal heirs, as the case may be, of such subscriber subject to the
  1. I. The nominee or family members of the deceased subscriber shall have the option to purchase any of the annuities being offered upon exit, if they so desire, while applying for withdrawal of benefits, on account of deceased subscribers’ Permanent Retirement Account

  2. II. in case, the nomination is not registered by the deceased subscriber before his death, the accumulated pension wealth shall 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
There are no options or any further points to be discussed or highlighted here