The Pension Fund Regulatory and Development Authority (PFRDA) will introduce during the second half of this year a new feature allowing systematic withdrawal from the National Pension Scheme (NPS), said its chairperson Deepak Mohanty.
As per the proposal, NPS subscribers would be allowed to withdraw systematically 60% of their contributions post-retirement up to the age of 75 instead of current system of one-time withdrawal, while 40% has to be in annuity.
“We are planning to introduce Systematic Withdrawal Plan from the second half of this year,” Mr. Mohanty said. “The amount can be fixed by the subscriber any number of times and it can be withdrawn in lump sum or in monthly, quarterly, half yearly or annual basis. It is applicable to those in the age group of 60-75,” he told mediapersons.
Asserting that it might happen during the last quarter of the calendar year, he said that the software needed to be updated accordingly.
Mr. Mohanty said that the Assets Under Management of NPS and the Atal Pension Yojana (APY) stood at ₹9.6 lakh crore and was expected to cross ₹10 lakh crore during September.
During the current fiscal, NPS expects to enroll 13 lakh new subscribers from the non-government sector as against 10 lakh people in the year-earlier period.
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