New Delhi. Pension regulatory body PFRDA has made several important changes in the rules related to the National Pension System (NPS). The purpose of these new provisions is to provide more facilities to investors, strengthen retirement funds and ease the availability of money in times of need. These changes are being seen as a big relief for NPS account holders.
1. Investment age limit increased
Now the age limit for investing in NPS has been increased from 75 years to 85 years. That means people can increase their funds for a longer period.
2. Relief in annuity rules
Now private sector employees will not be obliged to invest 40% of their amount in annuity at the time of retirement. It will be necessary to invest only 20% in annuity.
3. Full withdrawal on small amount
If the total deposit in an account is Rs 8 lakh or less, the entire amount can be withdrawn at once.
4. Partial and installment withdrawals
Investors with Rs 8 to 12 lakh can now withdraw a part in lump sum and the remaining money in installments.
5. SUR (Systematic Withdrawal) facility
The new option allows investors to withdraw money in installments at regular intervals, thereby maintaining stable income after retirement.
6. Partial withdrawal limit increased
Now NPS members can make partial withdrawals up to a maximum of 4 times, whereas earlier this limit was 3 times.
7. Investment continues even after 60 years
Even after retirement, members can remain in the scheme and withdraw money from time to time, so that the funds can be utilized in a better way.
8. You will get full money on giving up citizenship
If a person gives up Indian citizenship, he can withdraw the entire amount of his NPS account.
9. Relief to the family in case of missing
The nominee will get 20% of the amount immediately in such a situation, while the remaining 80% will be released later as per the rules.
10. Loan facility on NPS
Now loan can be taken from the bank using NPS account as the basis. This has made this scheme more useful.
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