Currently, there is a limit of 2 lakh rupees, in which an NPS customer can withdraw the entire money. Beyond this limit, currently only 60 percent of the pension amount can be withdrawn.
Due to Corona epidemic, the government is taking all the measures so that the financial condition of the people does not deteriorate and they can get financial help in this hour of trouble. Under this, retired individuals will soon be allowed to withdraw their entire lifetime contributions to meet their family emergencies or use their pension fund money to invest in better return instruments.
Currently, there is a limit of 2 lakh rupees, in which an NPS customer can withdraw the entire money. Beyond this limit, currently only 60 percent of the pension amount can be withdrawn, while 40 percent of the contribution is compulsorily placed in an annuity approved by the government.
Will be able to withdraw all the money in one go
Sources in the government said that the pension regulator, Pension Fund Regulatory and Development Authority (PFRDA) is considering coming up with a better option for customers of the National Pension System (NPS). Under this, they will be able to withdraw all their money at one time if the pension is a corpus of up to 5 lakh rupees.
Thoughts on increasing the limit
Sources in the government said that the scheme is to increase the limit to Rs 5 lakh which will provide better liquidity to the customers of a certain segment. Also, in a fund of Rs 5 lakh, regular pension amount will be given to the shareholders for a lifetime. To provide significant income would be very insignificant. However, even with the changed withdrawal scheme, PFRDA is expected to provide an option to keep a portion of the pension amount of the customers for investment in annuities or for investment by pension fund managers.
Lump sum amount will be given in disability pension
Apart from this, the facility has also been expanded to pay lump sum compensation for the National Pension System i.e. NPS Employee. Under the rule, if a government employee becomes disabled during duty and the government decides to keep him on the job again, then such employees get a lump sum compensation. It is a disability pension in a way.
Communication will be done in digital mode
Apart from this, if PPO (Pension Payment Order) has been issued in any case but due to Corona, it has not yet reached the Central Accounting Office (CPAO) or the bank, then further processing of these matters can be done by Control General of Accounts (CGA). Will be completed on the side. CGA will issue directive to the concerned pension processing center or bank and all communication will be done in digital mode.
