A.

NPS Exit Reference Table

Government Sector Premature Exit / Voluntary Retirement

(Exit before 60 years/Superannuation)

a. Complete (100%) Lump sum withdrawal allowed if the corpus is equal to or

below ₹ 2.5 Lakh.
b. If the corpus higher than ₹ 2.5 Lakh, at least 80% of the accumulated pension
wealth has to be utilized for purchase of an Annuity providing for monthly
pension to the Subscriber and the balance 20% is paid as lump sum to the
Subscriber.
c. Subscribers can opt and encouraged to continue in NPS under All Citizens Model
post carrying out Inter Sector Shifting (ISS).

Normal exit
(60 years or beyond /Superannuation )

a. Complete (100%) Lump sum withdrawal allowed if the corpus is equal to or

below ₹ 5 Lakh.
b. If the corpus is more than ₹ 5 Lakh, at least 40% of the accumulated pension
wealth of the Subscriber has to be utilized for purchase of an Annuity providing
for monthly pension to the Subscriber and the balance 60% is paid as lump sum
to the Subscriber.
c. In case of death after 60 years / superannuation) 60% lump sum will be paid to
the nominees and 40% for default annuity by dependents.

Unfortunate Death
before normal exit / 60 years or Superannuation

a. Complete (100%) withdrawal for corpus to nominees/legal heirs if the corpus is

less than or equal to ₹ 5 Lakh. However, the nominees can opt for annuity if
desired.
b. If the corpus is higher than ₹ 5 Lakh, at least 80% of the accumulated pension
wealth of the Subscriber has to be utilized for purchase of default Annuity by
dependents and the balance 20% is paid as lump sum to the nominee/legal heir.
c. If none of the dependent family members (spouse, mother & father) are alive, the
Corpus i.e. 80 % has to be returned to the surviving children of the Subscriber
and in the absence of children, to the legal heirs.
 Non Government Sector Premature Exit / Voluntary Retirement
(Exit before 60 years/Superannuation)

a. 10 Years mandatory subscription.

b. Complete (100%) Lump sum withdrawal if the corpus is equal or less than ₹ 2.5
Lakh.
c. If the corpus more than ₹ 2.5 Lakh, at least 80% of the accumulated pension
wealth of the Subscriber has to be utilized for purchase of an Annuity and the
balance 20% is paid as lump sum to the Subscriber.

Normal exit
(60 years or beyond /Superannuation )

a. Complete (100%) Lump sum withdrawal is allowed if the corpus is less than or
equal to ₹ 5 Lakh.
b. If the corpus is more than ₹ 5 Lakh, at least 40% of the accumulated pension
wealth of the Subscriber has to be utilized for purchase of an Annuity and the
balance 60% is paid as lump sum.
c. In case of death after 60 years / superannuation, lump sum is paid to the
nominees. However, the nominees can opt for annuity if they desire so.

Unfortunate Death
before normal exit / 60 years or Superannuation

a. The entire accumulated pension wealth of the Subscriber payable to the nominee
or legal heirs if the Subscriber dies before or after attaining 60 years. However,
the nominees can opt for annuity if they desire so.

Unfortunate death of NPS a. Default annuity is to be bought by the dependents in the case of Govt sector. If
Subscriber post payment of none of the dependent family members (spouse, mother & father) are alive, the
the lump sum but annuity not Corpus has to be returned to the surviving children of the Subscriber and in the
issued. absence of children, to the legal heirs.
b. For Non-Govt sector, annuity as per the choice is to be availed by
spouse/dependents. Complete (100%) lump sum withdrawal or annuity or lump
sum withdrawal & annuity as per the choice is to be availed by
spouse/dependents.

Subscribers who join NPS In case of Non Govt Sector

after 60 years a. Normal exit is allowed after completion of 3 years. The Subscriber will be required
to utilize at least 40% of the corpus for purchase of annuity and the remaining
amount can be withdrawn in lump sum. Complete (100%) withdrawal allowed as
lump sum if the corpus is less than or equal to ₹ 5 Lakh.
b. In case of exit before completion of 3 years, the Subscriber will have to utilize at-
least 80% of the corpus for purchase of annuity and the remaining corpus can be
withdrawn in lump sum. Complete (100%) withdrawal allowed as lump sum if the
corpus is less than or equal to ₹ 2.5 Lakh.
c. In case of unfortunate death of the Subscriber, the entire corpus will be paid to
the nominee of the Subscriber as lump sum or nominee can opt for annuity.

In case of Govt Sector

 a. In case of Govt Sector, the exit rules will be applicable as per the terms and
condition of the employment.

Note :Default Annuity Scheme shall provide for Annuity for life of the Subscriber and his or her spouse (if any) with
provision for return of purchase price of the Annuity and upon the demise of such Subscriber and spouse (if any), the
Annuity be re-issued to the family members in the order specified here under at a premium rate prevalent at the time of
purchase of such annuity by utilizing the purchase price required to be returned under the Annuity contract and all the
family members in the order specified below are covered,
a. Living dependent mother of the deceased Subscriber;
b. Living dependent father of the deceased Subscriber

After the coverage of all the family members specified above, the purchase price shall be returned to the surviving children
of the Subscriber and in the absence of children, the legal heirs of the Subscriber, as may be applicable.

B. Exit & withdrawal due to disability and in-capacitation

Government If the employer certifies that the Subscriber has been discharged from the services of the concerned
sector office on account of invalidation or disability, in such case, exit shall be handled as superannuation.
Subscribers

Non – Govt. lf Subscriber is physically incapacitated or has suffered a bodily disability leading to his incapability to
sector continue NPS subject to the Subscriber submitting a disability certificate from a Government surgeon or
Subscribers Doctor (treating such disability or invalidation of Subscriber) stating the nature and extent of disability
and also certifying that:
a. the affected Subscriber shall not be in a position to perform his regular duties and there is a real
possibility of the affected Subscriber, being not able to work for the remaining period of his life.;
and
b. Percentage of disability is more than 75 % in the opinion of such Government surgeon or doctor
(treating such disability or invalidation of Subscriber).”

It means such cases shall be handled similarly as exit cases at the age of superannuation or at the age
of 60 years.

C. Option of Family Pension for Government sector Subscribers provided by the employer

If the Subscriber or the family members of the deceased Subscriber, upon his death, avails the option of additional relief
on death or disability provided by the Government, the Subscriber has to transfer NPS corpus to the Nodal Office. The
Subscriber or family members of the Subscriber availing such benefit shall specifically and unconditionally agree and
undertake to transfer the entire accumulated pension wealth to the Government.

D. Deferment/Continuation under NPS

 Non Continuation of NPS account
Government
Sector a. Subscriber can opt to continue in NPS till 75 years of age and also deposit contributions to avail
exclusive tax benefits.
b. All the facilities and options of normal NPS account like access to CRA system, option to switch
fund managers and assets class etc. provided.
c. If Subscriber after attaining the age of 60 years/Superannuation has not initiated exit request or
has not exercised the option of continuation under NPS, then Subscriber shall be automatically
continued under NPS till he/she attains the age of 75 years, as if he/she has exercised the option
of Continuation. In case of Corporate Subscribers, the Subscriber shall be automatically continued
under NPS till he/she attains the age of 75 years, after 90 days of superannuation.
d. Subscribers can exit from NPS and start pension anytime during the period of continuation.

Deferment of Withdrawal

a. Subscriber can defer his withdrawal with multiple options

Defer only Lump sum withdrawal
Defer only Annuity
Defer both
b. Subscriber can opt to defer the lump sum up to the 10 years.
c. Annuity can be deferred for 3 years.

Government Continuation of NPS account

Sector
a. Subscriber can opt to continue in NPS till 75 years of age and also deposit contributions to avail
exclusive tax benefits.
b. All the facilities and options of normal NPS account like access to CRA system, option to switch
fund managers and assets class etc. provided.
c. Subscribers can exit from NPS and start pension anytime during the period of continuation.

Deferment of Withdrawal

a. Subscriber can defer his withdrawal with multiple options

Defer only Lump sum withdrawal
Defer only Annuity
Defer both
b. Subscriber can opt to defer the lump sum up to the 10 years.
c. Annuity can be deferred for 3 years.

Note :
i. If the Subscriber has opted for deferment, Subscriber will not be able to contribute. However, if Subscriber has opted
for continuation, he/she will be able to contribute in NPS.
ii. CRA Account maintenance charges need to be borne by the Subscribers post deferment/continuation, if the charges
were borne by the employer earlier.

E. Allocation of corpus among lump sum & annuity at the time of exit

Types of Exit Criteria for calculation of Lump sum/Annuity

Premature Exit / Voluntary The corpus in the PRAN as on the date of initiation of withdrawal request shall be
Retirement / Normal Exit (60 criteria for allocating the same for the lump sum or annuity and both as the case
years/Superannuation) may be.

Death The corpus lie in PRAN as on the date of death shall be criteria for allocating the
same among the lump sum or annuity and both as the case may be.

Additional Information
The percentage of the corpus mentioned in the table for buying annuity is minimum whereas for the lump sum is
maximum. It means the entire corpus can be used for buying annuity whereas the lump sum component has the
maximum cap as the case may be.
Subscriber can buy Annuity from any one of the empanelled Annuity Service Providers (ASPs) by PFRDA. The list of
ASPs empanelled and their contact details are available at [Link]
Subscriber can check the Annuity rates (pension amount) offered by different ASPs from the Annuity Calculator
available on [Link]

F. Option for NPS Subscribers who have partially exited from NPS

The eligible NPS Subscribers who have withdrawn lump sum from NPS but annuity not issued can exit from NPS by
availing Annuity or redeposit the amount withdrawn as lump sum and continue the same PRAN.

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