Changes have been made in the exit norms from the NPS scheme. From pre-mature exit to some other changes have been seen. Which is very important to know about together.
The National Pension Scheme of the Government of India has undergone several important changes in the recent weeks. As the age of the people who are interested in joining the scheme has been increased. Changes have been made in the exit norms from the scheme. From pre-mature exit to some other changes have been seen. Which is very important to know about together. According to the information, there is a steady increase in NPS subscribers. Its AUM is expected to reach Rs 7.5 lakh crore in the financial year 2022. Let us also tell you what kind of changes have been seen in NPS after all.
What happened to government employees
According to a circular on October 4, government sector employees will also be able to exit from NPS online. Earlier this facility was available only to private sector employees. According to the circular, the online exit will be linked with the instant bank account verification as per the extant guidelines. This facility will also be available to the employees of Autonomous Bodies of Central/State Government who are included in NPS.
Entry can be done up to 70 years
Pension Fund has changed the guideline of entry in NPS to 70 years. Earlier only people of 65 years of age could take entry in it. Whereas no change has been made in the minimum age. According to a PFRDA circular on revised guidelines, any Indian citizen in the age group of 65-70 years and Overseas Citizen of India (OCI) can also join NPS and continue till the age of 75 years.
Changes in Exit Norms
There have been changes in the exit norms for customers joining NPS who are above 65 years of age. It has been said in the circular that the Norman exit can be done after 3 years. According to the circular, customers will have to use at least 40 per cent of the amount to buy annuity and the rest can be withdrawn in a lump sum. If the fund is Rs 5 lakh or less, the customer can opt to withdraw the entire amount in one go.
Account can be deferred till 75 years, on
the other hand any NPS account holder can defer his NPS account till the age of 75 years. Its permission has been given by PFRDA itself.
New Premature Exit Rule
If you are planning to exit NPS prematurely, you will get a lump sum amount of only 20 per cent of the amount deposited in NPS. With the rest of the amount, you will have to buy the annuity. This 80:20 rule will be applicable for both government and non-government sector customers joining NPS between 18-60 years. However, in case of non-government sector, the individual has to be a customer for 10 years.
