NPS Exit Rules: PFRDA has given a lot of information about NPS Exit Rules and has told that now the subscribers of National Pension System will not have to pay any kind of fee for many works.
National Pension System Exit Rules: The Pension Fund Regulatory and Development Authority (PFRDA) has given great relief to crores of subscribers of the National Pension System. PFRDA has issued a notification on July 27, 2023, issuing a clarification on the rules for exiting the pension scheme.
According to this notification, NPS subscribers can now select any annuity plan as soon as they exit the pension fund. This choice will be according to the need of the subscriber. In such a situation, they will not be charged any kind of fee for this work.
Rules for exiting pension have been simplified
PFRDA has tried to make it easier for the beneficiaries of the National Pension System to exit the scheme. If a subscriber wants to exit this scheme after retirement, he can easily take an exit from it. In order to give maximum information about the exit rules of NPS, PFRDA has ordered the nodal officers of Government, POPs and National Pension System Trust to help NPS customers choose the scheme according to their needs. With this, the beneficiaries will not have to face any kind of problem in future.
Will not have to pay the charge
Apart from simplifying the exit rules of NPS, PFRDA has also informed that the subscribers will not have to pay any additional charges for opting for any type of annuity service. Along with this, PFRDA has also made it clear that Bina Company can only charge premium from NPS subscribers as NPS subscribers already deposit the fee as tax to the government.
In such a situation, there should be no pressure on them to charge any kind of fee for other services. Along with this, it will be the responsibility of the Compliance Officer to complete all the tasks related to the Annuity Service Provider. Significantly, PFRDA is trying to make the subscribers more empowered by providing maximum facilities to the subscribers.
What is the exit rule from NPS?
As per PFRDA rules, NPS subscribers can use 40% of their entire corpus to buy annuity at the time of maturity. On the other hand, the remaining 60 percent can be withdrawn in one go, but if this corpus is less than Rs 5 lakh, then you can withdraw the entire amount at the time of maturity. On the other hand, if you want to buy a pension plan before 60 years, then you are required to use at least 80% of the NPS corpus.
