NPS: RBE No.130/2023 – Systematic Lumpsum Withdrawal

No.2016/F(E)III/1(1)/3, dated 30.11.2023

Sub: Facility of Systematic Lump sum Withdrawal (SLW) for NPS subscribers – regarding.

1. A copy of Pension Fund Regulatory and Development Authority (PERDA)’s Circular No.PFRDA/2023/30/SUP-CRA/10, dated 27.10.2023 on the above cited subject is enclosed for information and compliance. The instructions contained therein shall apply mutatis mutandis on Railways also.

2. The PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015 mentioned in circular dated 27.10.2023 were adopted on Railways vide letter of even number dated 27.05.2016 (RBE No.55/2016).

3. Please acknowledge receipt.

Pension Fund Regulatory and Development Authority

Circular No.PFRDA/2023/30/SUP-CRA/10, dated 27.10.2023

CIRCULAR

Sub: Facility of Systematic Lump sum Withdrawal (SLW) for NPS subscribers – regarding.

1. As per the existing exit guidelines, the subscribers post 60 years/ superannuation can defer availing of annuity & withdrawing the lump sum on any combination till 75 years of age. The lump sum amount can be withdrawn in a single tranche or it can be withdrawn on an annual basis. If withdrawn annually, the Subscriber has to initiate the withdrawal request each time and authorized.

2. In accordance with Regulation 3 and Regulation 4 of PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015 and amendments therein, it is proposed to provide the option of phased withdrawal of the lump sum through Systematic Lump Sum Withdrawal (SLW) facility. The subscribers are allowed to withdraw up to 60% of their pension corpus, through the SLW on a periodical basis viz. monthly, quarterly, half-yearly or annually for a period till 75 years of age as per the choice at the time of their normal exit.

3. All Nodal offices, Points of Presence, NPST and Corporate can disseminate the information about SLW for the associated Subscribers who superannuate or reaching the age of 60 years and plan to exit from NPS. Central Record Keeping Agencies (CRAS) can publish FAQs and release educational podcasts on SLW, highlighting its benefits and explaining the process of initiating SLW on their websites and social media platforms.

This circular is issued in exercise of powers conferred under section 14(1) of The Pension Fund Regulatory & Development Authority Act, 2013.

Download Railway Board Circular RBE No.130/2023