RBE No.22/2022 National Pension System (NPS) – Exits & Withdrawal from NPS
No.2016/F(E)III/1(1)/3, dated 22.02.2022
Sub: Exits and Withdrawals under the National Pension System – regarding.
A copy of Pension Fund Regulatory and Development Authority (PFRDA)’s Gazette Notification No.PFRDA/12/RGL/139/8, dated 28th December, 2021 issued in amendment of the provisions of the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015 is enclosed herewith for information and compliance.
The Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015 mentioned in the enclosed Gazette Notification were adopted on Railways vide letter of even number dated 27.05.2016 (RBE No.55/2016). The Central Civil Services (Implementation of National Pension System) Rules, 2021 notified vide GSR No.227(E) dated 30.03.2021 are under adoption in the Ministry of Railways.
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
The Gazette Of India
CG-DL-E-29122021-232219
EXTRAORDINARY
PART III—Section 4
PUBLISHED BY AUTHORITY
No.PFRDA/12/RGL/139/8, dated 28th December, 2021
NOTIFICATION
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (EXITS AND WITHDRAWALS UNDER THE NATIONAL PENSION SYSTEM) (SECOND AMENDMENT) REGULATIONS, 2021
No.PFRDA/12/RGL/139/8 – In exercise of the powers conferred by sub-section (1) of Section 52 read with sub-clause (g), (h), and (i) of sub-section 2 of Section 52 of the Pension Fund Regulatory and Development Authority Act, 2013 (Act No.23 of 2013), the Pension Fund Regulatory and Development Authority hereby makes the following regulations to amend the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015 namely
(1) These regulations may be called the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Second Amendment) Regulations, 2021.
(2) These shall come into force on the date of their publication in the official gazette.
(3) In the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015:
(I) New sub-regulation (1) (da) shall be inserted after sub-regulation (1)(d) of Regulation 2 as below:—
“(da) “CCS NPS Rules 2021” shall mean Central Civil Services (Implementation of National Pension System) Rules, 2021 notified vide no.G.S.R. 227(E), dated 30.03.2021 and amendments thereto by Department of Pension and Pensioners’ Welfare, Ministry of Personnel, Public Grievances and Pensions, Government of India.”
(II) In sub-regulation (1)(g) of Regulation 2, after words “Central Government or the State Governments” the words “including autonomous bodies under Central or State Government” shall be inserted;
(III) In sub-regulation (k)(iii) of Regulation 2, after words “death of the subscriber” the words “or the subscriber being missing and presumed dead as per Indian Evidence Act, 1872 and amendments thereto,” shall be inserted;
(IV) In sub-regulation (a)(ii) of Regulation 3, –
(i) For the words “seventy years”, the word “seventy-five years” shall be substituted;
(ii) At the end of the existing sub-section, the following shall be added:
“The subscriber shall have an option to exit from the National Pension System at any point of time and frequency by submitting a request to National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose. In case of death of subscriber during the period of deferment, such deferred amount of the subscriber shall be paid in the preferential order of nominee(s) followed by legal heir(s).”
(V) In sub-regulation (a)(iii) of Regulation 3, –
(i) For the words “for a maximum period of three years from the date of attainment of age of superannuation”, the word “until attaining the age of seventy-five years,” shall be substituted;
(ii) At the end of the existing sub-section, after words “or entity authorized by the Authority for the purpose” the words “The subscriber shall have an option to purchase an annuity at any point of time during the deferment period by submitting a request to National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose.” shall be inserted;
(VI) Sub-regulation (a)(vi) of Regulation 3 shall be substituted as below:-
“where the subscriber desires to continue in the National Pension System and contribute to his retirement account beyond the age of sixty years or the age of superannuation, he or she shall have the option to do so by giving in writing or in such form as may be specified, and up to which he would like to contribute to his individual pension account but not exceeding seventy-five years of age. Such option shall be exercised at least fifteen days prior to the age of attaining sixty years or age of superannuation, as the case may be to the central recordkeeping agency or the National Pension System Trust or any other intermediary or entity authorized by the Authority for the purpose. In such cases, individual pension account/ Permanent Retirement Account shall require to be shifted from Government sector to All citizens including corporate sector and the expenses, maintenance charges and fee payable under the National Pension System in respect of the said individual pension account/ Permanent Retirement Account, shall continue to remain applicable;
Provided further that such subscriber who has not exercised the option within the period of fifteen days, so stipulated, but desires to continue with his individual pension account under National Pension System, beyond the age of sixty years or the age of superannuation, as the case may be, and to the extent so permitted, may do so by making an application in writing with reasons for such delay to the National Pension System Trust. The authorized officer of the National Pension Trust, may condone such delay, if any, in exercise of such option by the subscriber, as he may deem fit, having regard to the cause so shown or on any other relevant matter.
Notwithstanding exercise of such option, the subscriber may exit at any point of time from National Pension System, by submitting a request to central recordkeeping agency or the National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose;”
(VII) In sub-regulation (a)(vii) of Regulation 3, –
(i) After the words “office on account of invalidation or disability” the words “or premature retirement as per the applicable service rules,” shall be inserted.
(ii) After the words “shall be determined as specified under sub-regulation (a)” the words “In case of a Central Government employee, if the subscriber is discharged from service on the following grounds, as prescribed under CCS NPS Rules 2021 and amendment thereto, the exit shall be determined as specified under sub-regulation(a).
(a) Completion of twenty years’ regular service.
(b) Benefits on retirement under Rule 56 of fundamental rules or under the special voluntary retirement Scheme.
(c) Entitlement on retirement on invalidation.
(d) Entitlement on boarding out from service on account of disablement.
(e) Absorption in or under a Corporation or Company or Body wholly or substantially owned or controlled or financed by the Central Government or a State Government, if the National Pension System does not exist in the new organization.” shall be inserted.