PENSION
FUND REGULATORY AND DEVELOPEMENT
AUTHORITY
NO:
PFRDA/2016/13/Exit/06 dated 27.07.2016
Subject:
Clarification on Continuing Contribution beyond 60 years or
Age of Superannuation - till 70 years.
The authority has notified the PFRDA
(Exits and Withdrawal from National Pension System) Regulations, 2015 on 11th
May,2015 and is in force. Reference is drawn to regulation 4 pertaining to exit
from National Pension System by citizens, including corporate sector subscribers
and more particularly sub-regulation (a).
It has been brought to the notice of
the Authority that the stakeholders including subscribers require further clarify
on the matters associated in order to actively utilise this opportunity to
continue to contribute to NPS. Thus, for the convenience of the subscriber
clarifacatory guidelines are issued. The authority has examined the matter and
authority is exercise of its powers under section 14 of the Pension Fund
Regulatory and Development Authority Act - 2013 read with regulation 39 of the
PFRDA (Exits and Withdrawals from National Pension Scheme) Regulations, 2015
hereby issued the following clarifications.
Sl No
|
ISSUE RAISED
|
CLARIFICATION
|
1
|
When
should a subscriber inform NPS Trust or CRA about his/her intention to
continue contributions beyond the age of 60 years/ superannuation age?
|
Where
a subscriber desires to continue to contribute NPS beyond the age of 60 years
or superannuation age, he or she shall have the option to do so provided the
subscriber intimates his or her intention to do so in writing in the
specified form at least fifteen days before the attainment of 60 years of age
or the age of superannuation to the CRA.
|
2
|
On
what corpus will the mandatory minimum investment of 40% of the accumulated
pension wealth for purchase of annuity be applicable i.e. the corpus
available on the date of attaining 60 years or superannuation OR the corpus
available at the time of exit after availing the benefit of further
contributions to the NPS account under sub regulations 4(a)(i)
|
The
entire set of Exit and withdrawal conditions as per the applicable
regulations would be applicable on the accumulated pension wealth
available in the PRAN as on the date
of final exit from NPS including those contributions and investment income
that have been contributed and accrued to the account beyond the age of 60
years or the age of superannuation.
|
3
|
Whether
Tire-II account can also be continued along with the Tire-I when one opts for
further contributing to NPS beyond the age of 60 years or superannuation.
|
For a
normal NPS account a Tire-II account can exist as far as there is a
corresponding Tire-I account. Hence the same position shall continue and the
subscriber may to contribute to his Tire-II account apart from Tire I account.
|
4
|
Will
the subscriber who has opted to contribute to his Tire I account beyond the
age of 60 years/superannuation have all the facilities and options of a NPS
account like access to CRA system, option to switch PFMs and investment
choice etc.
|
Yes,
the subscriber shall enjoy all the facilities and options of a normal NPS
account like access to CRA system, option to switch PFMs and investment
choice etc.
|
5
|
Whether
one can Exit at any point of time after choosing to continue to contribute to
NPS beyond 60years / superannuation.
|
Yes,
a subscriber can exit from NPS after giving due notice, at any point of time
after choosing to continue to contribute to NPS irrespective of the period of
contribution indicated by the subscriber while submitting the request to
continue to contribute to NPS.
|
6
|
Whether
the option of deferment of purchase of annuity would be available to the
subscribers who have voluntarily opted to continue to contribute beyond 60
years of age or superannuation and when they decide to Exit finally from NPS.
|
Option
of deferment of purchase of annuity would be available to the subscribers who
have voluntarily opted to continue to contribute beyond 60 years of age or
superannuation
|
