New NPS partial withdrawal rule: All you need to know
PFRDA allows subscribers to make partial withdrawals from National Pension System for specific purposes
Subscribers can make partial withdrawals for:
- Children's higher education- Marriage of the subscriber's children
- Purchase or construction of a residential property in the subscriber's name or in joint name with spouse
- Treatment of specified illnesses
- Medical & incidental expenses arising from disability or incapacitation suffered by subscriber
- Expenses incurred by the subscriber for skill development/re-skilling
- Expenses incurred by subscriber for establishment of her/his own venture or any start-ups
Eligibility criteria for partial withdrawal:
- Subscriber should have been NPS member for at least 3 years from the date of joining
- Partial withdrawal amount should not exceed 25% of subscriber's total contributions in their individual pension account
- Returns generated on contributions shall not be eligible for partial withdrawal
- A subscriber is allowed to make a maximum of 3 partial withdrawals during their entire subscription tenure under NPS
