Many of us stayed away from NPS only because of liquidity issue. However, a few days back PFRDA came up with regulation called “Pension Fund Regulatory and Development Authority (Exits and Withdrawals Under the National Pension System) Regulations 2015”. Â Let us see what options are available now under this scheme.
Let us first discuss about an exit from National Pension System (NPS).
For exit purpose, PFRDA specified NPS subscribers into three categories. They are as below.
- Government sector subscribers.
- All citizens, including corporate sector
- NPS- Lite and Swavalamban subscribers
Below I try to explain only about first two categories of subscribers.
i) Exit options for Government sector subscribers after attaining the retirement age (As per service rules)–
1) Once the subscriber attains the age of retirement, then he has to buy a pension product from 40% of such accumulated corpus. He can withdraw a rest of the 60% from such corpus. In case subscriber don’t want to opt the default pension option, then he has below-mentioned options-
a) In case subscriber don’t want to withdraw the 60% of accumulated corpus, then he can postpone this withdrawal. However, he can withdraw this 60% of corpus only after attaining the age of 70 yrs of age. Also, he must inform this decision 15 days before he is attaining the retirement age.
You can inform this to the National Pension System Trust or an intermediary or entity authorized by the Authority.
b) You can defer your decision of buying a pension product even after attaining the age of retirement. You can postpone such decision up to 3 years. Again, you have to inform this decision 15 days before he is attaining the retirement age.
You can inform this to the National Pension System Trust or an intermediary or entity authorized by the Authority.
Points to remember while going for this option.
- If subscriber’s death occurs during this deferred period, then a spouse must buy the pension product.
c) You have options to defer the withdrawal of 60% or buying a retirement product. However, you have to bear the cost of the maintenance of Permanent Retirement Account, including the charges payable to the central record keeping agency, pension fund, Trustee Bank or any other intermediary, as may be applicable from time to time.
d) In case the accumulated amount is less than or equal to Rs.2 lakh, then he can withdraw the whole such accumulated amount without purchasing the pension product. Once you withdraw this amount then you no longer be the member of NPS and you are not eligible for pension also.
ii) Exit options for Government sector subscribers before attaining the retirement age–
If you exit before reaching the retirement age then you have to buy a pension product for the minimum of 80% of such accumulated corpus. The balance of the accumulated pension wealth (20%), after such utilization, shall be paid to the subscriber in a lump sum.
- In case during this early exit, the accumulated corpus is more than Rs.1,00,000 but not eligible to buy any retirement product, then he can continue to contribute until his age is eligible for buying a retirement product.
- In case during the early exit, the accumulated corpus is less than or equal to Rs.1, 00,000, then he can withdraw whole corpus at once. Once you receive such full accumulated amount then you no longer be a member of this scheme and you can’t expect any pension further.
iii) Exit options for Government sector subscribers who dies before attaining the retirement age–
If subscriber dies before attaining the retirement age, then 80% of such accumulated corpus be utilized for buying a retirement product and the rest of the 20% will be payable as a lump sum to a spouse or nominee.
- In case the accumulated corpus is less than or equal to Rs.2, 00,000 then his spouse (or nominee) can withdraw all the amount at once without any mandatory.
vi) Exit options from National Pension System (NPS) by citizens, including corporate sector subscribers after 60 years of age–
1) Once the subscriber attains the age of 60 years of age, then he has to buy a pension product by utilizing the minimum of 40% of such retirement corpus. The rest of 60% of such retirement corpus are payable to him. Apart from this default option, a subscriber can opt these below-mentioned options too.
a) In case subscriber don’t want to withdraw the 60% of accumulated corpus, then he can postpone this withdrawal. However, he can withdraw this 60% of corpus only after attaining the age of 70 yrs of age. Also, he must inform this decision 15 days before he is attaining the retirement age.
You can inform this to the National Pension System Trust or an intermediary or entity authorized by the Authority.
b)Â You can defer your decision of buying a pension product even after attaining the age of 60 yrs. You can postpone such decision up to 3 years. Again, you have to inform this decision 15 days before he is attaining the retirement age.
You can inform this to the National Pension System Trust or an intermediary or entity authorized by the Authority.
c) You have options to defer the withdrawal of 60% or buying a retirement product. However, you have to bear the cost of the maintenance of Permanent Retirement Account, including the charges payable to the central record keeping agency, pension fund, Trustee Bank or any other intermediary, as may be applicable from time to time.
d)Â In case the accumulated amount is less than or equal to Rs.2 lakh, then he can withdraw the whole such accumulated amount without purchasing the pension product.
v) Exit options from National Pension System (NPS) by citizens, including corporate sector subscribers before 60 years of age-
You are allowed to exit from NPS before 60 years of age only in case you subscribed to the national pension system for at least a minimum period of ten years. At least 80% accumulated pension must be converted to buy pension plan. The rest of 20% will be payable to a subscriber as a lump sum.
In case accumulated pension amount is more than Rs.1, 00,000 but, the age of the subscriber is not eligible to buy any pension plan, then he can continue subscribe to NPS until he attains the eligible age.
In case accumulated pension amount is less than or equal to Rs.1, 00,000 then he can withdraw the whole amount at once without buying the pension product.
vi) Exit options from National Pension System (NPS) by citizens, including corporate sector subscribers if dies before 60 years of age-
In case the subscriber dies before attaining the age of 60 years then the whole accumulated corpus be payable to his nominee. In case nomination not done, then the amount will be payable to the family members on the basis of the legal heir certificate issued by the Revenue authorities of the State concerned or the succession certificate issued by a court of competent jurisdiction.
National Pension System (NSP) Withdrawal conditions
As of now subscribers need to contribute till 60 years of age without any option of a partial withdrawal. However, from now onward they added some withdrawal options with some conditions.
- The subscriber must be in the National Pension System for at least 10 years.
- The subscriber permitted to withdraw accumulations not exceeding 25% of the contributions made by him and standing to his credit in his individual pension account, as on the date of the application for withdrawal.
- The subscriber allowed to withdraw only a maximum of 3 times during entire tenure of subscription.
- The gap between one withdrawal to another must not be less than 5 years. However, this condition will not apply in case of “treatment for specified illnesses or in case of withdrawal arising out of exit from National Pension System due to the death of the subscriber.
- You must submit this withdrawal request in the specified form along with necessary documents to the central record keeping agency or the National Pension System Trust, as may be specified, for processing of such withdrawal claim.
- If subscriber suffering from diseases, then a family member can submit the application.
- For Tier II account, one can withdraw either partial or full amount available in this without any condition. In case of exit from NPS, even if you have not provided the withdrawal application for this Tier II, the accumulated wealth in such account shall be transferred to the bank account provided by the subscriber, while submitting his application for exit from the National Pension System.
For what purpose the subscriber allowed to withdraw money from the National Pension System (NPS)?
- The higher education of his or her children, including a legally adopted child.
- The marriage of his or her children, including a legally adopted child.
- For the purchase or construction of a residential house or flat in his or her own name or in a joint name with his or her legally wedded spouse. No withdrawal allowed in case the subscriber already owns a residential house or flat, other than ancestral property either individually or in the joint name.
- If the subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents suffer from any specified illness, which shall comprise of hospitalization and treatment in respect of the following diseases:
- Cancer;
- Kidney Failure (End Stage Renal Failure);
- Primary Pulmonary Arterial Hypertension;
- Multiple Sclerosis;
- Major Organ Transplant;
- Coronary Artery Bypass Graft;
- Aorta Graft Surgery;
- Heart Valve Surgery;
- Stroke;
- Myocardial Infarction;
- Coma;
- Total blindness;
- Paralysis;
- Accident of serious/ life threatening nature.
- Any other critical illness of a life-threatening nature as stipulated in the circulars, guidelines or notifications issued by the Authority from time to time.
I still feel liquidity is a hindrance to invest in NPS. Becuase even though they provided the partial withdrawal rules, they all came up with certain rules and restrictions.
Note-Now you can open NPS account ONLINE. Refer my latest post on the same “eNPS – How open and invest in NPS account online?“.
Hi,
I already have a house on my name, which i am intending to sell for buying a bigger house. In such a case can i withdraw NPS for house purchase purposes?
Dear RVD,
For house purcahse, you are not allowed to withdraw the NPS.
Dear Sir, my employer dismissed me from service after 8 years ( Age 40). Now what are the options I have to withdraw money from NPS account. Can I withdraw partial amount? And what documents would be required to submit.. last question. Can my employer delay my application without any reason?
Dear Suraj,
I hope you read the above post properly.
I have been terminated from government job after 3 years of service during which regular contribution was deducted towards my NPS account. Now, am I eligible to withdraw all my corpus under NPS? if yes then how?
Dear Rahul,
Whether you read the above post properly?
agar koi govt employee 5 saal complite hone se pehle resign kr rha hei to nps mei withdraw ka kya rule hai
Dear Sanjay,
Please read the above rules again. I have already cleared this point.
Hello Sir,
As per the above post” The subscriber must be in the National Pension System for at least 10 years.”
So I would like to know if employee resigned from central government job before 10 years of regular service then what should he do?
Also is it mean employee have to invest in NPS for 10 years or he have to work for 10 years in central government.
Dear Archana,
No option but to wait for the completion of 10 years.
I have recently resigned from central government job after serving for more than 6 years. Now, I have joined chhatisgarh state government job where OPS is applicable…How can I get my NPS money (atleast my contributions) back ?
Dear Ujjawal,
If it is less than the threshold limit mentioned above, then you can withdraw now also.
Hello Basu sir I need to know that I am resigning central govt job and I want to know that if I became citizen of another country can I withdraw whole money? Thanks in advance
Dear Rimpy,
Exit rules are same for resident Indians or NRIs.
Hello sir,
If I change my Citizenship, will i be able to withdraw completely or only 20 %.
Also, none of my bank account in India are active now. Can I open a new account and attach it with my NPS, in case I apply for withdrawal
Dear Poonam,
I have replied to your email.
Sir, I have worked in PSU Bank for 12 years. Now I want to start my own business. Can I withdraw full amount from NPS ?? Please guide. If not , then how much I can withdraw??
Dear Sarkar,
Sadly you can’t.
Hello sir, I have a query regarding premature exit. If I plan to retire at 45 years of age, 80% of corpus goes to annuity.
Q1. When will the monthly pension start : (a) immediately after voluntary retirement i.e 45 years of age OR (b) at 60 years of age ??
Q2. Also, If Possible i want to know how monthly pension will be calculated in this case.
Dear Harsh,
1) It starts from 60 years.
2) It depends on your accumulated corpus and the annuity rate offered by insurer.
Dear sir
If I want to resign my service under Delhi govt . After completed 10 years service.
Possible full amt withdrwal my nps amt .
Dear Rena,
Refer the above post properly.
Hi, I resigned from Public Sector Company job after working for 7 years and started my own business. What will the process if i want to continue depositing in my NPS a/c regularly, i mean, every month do i need to do any imps/neft for amt. Transfer to NPS if yes what is the a/c details. Suppose if i do not deposit anything in my existing NPS a/c till retirement, will it remain active ?
Dear Praveen,
Using the NPS aap you can do online contributions.
I want to change my banking job but in another job i am not want to show my experience of banking sector.also i want to continue my nps.can another employer do cross enquiry about nps like time period.amount
Dear Vidhur,
May be.
I have been dismissed from government job after 6 years of service during which regular contribution was deducted towards my NPS account. Now, am I eligible to withdraw all my corpus under NPS?
Dear Sharma,
Yes.
Sir can i withdraw full amount or 20% after removal from service?.
Dear Gaurav,
Refer my latest post “Latest NPS exit and withdrawal Rules 2021“.
Sir,
I exited from NPS scheme after resigning from Government job in 2013. I have not invested in any annuity plan till date. Corpus is still lying the PRAN account.
However, I was thinking to re-enter the NPS scheme. Can my old account with the corpus be used to restart NPS, or I have to buy annuity from the corpus and open a new PRAN or once exited from NPS one cant reenter the scheme?
Kindly advice
Dear Anurag,
If you not reached the retirement age, then yes you can continue the same NPS.
And what about the corpus which is lying the account. I need to buy the Annuity or it can be invested as per NPS?
Dear Anurag,
How it be invested in NPS?
Hello sir, iam central government employee. I have worked for two years and now iam resigning from this job.How can I withdraw the money. I also want to know if I want to continue this account how it is possible because I haven’t got a new job yet?
Dear Babita,
Yes, you can continue the same as a normal investor.
Dear Basu,
In the event of citizenship change before 60 years, NPS account will be deemed as closed, but it is not clear that
1) Will I have to invest 80% corpus in Indian annuity – can a foreign passport holder allowed to do that ?
2) What will be the tax implications on remaining 20% corpus ?
3) Can I get full amount in lumpsum into my NRE/MRO account and if yes then what will be the tax implications
Dear Nagendra,
Even NRIs are also allowed to invest in NPS. Hence, once the citizenship changes, then you can continue investing in NPS as usual (by updating your KYC status freshly). Hence, all your questions are applicable to same like typical Indian investors who invest in NPS. Exit and taxation rules are not different for NRIs.
Dear Basu,
FAQ available on PFRDA website says that in the event of change in citizenship, NPS account will be closed (please check 1st page on following link)
I am currently holdind Indian passport, After acquiring another passport I will no longer be an Indian citizen.
There is no clarity on paying lump sum amount and its taxation. Please advise.
http://pfrda.org.in//MyAuth/Admin/showimg.cshtml?ID=1404
Dear Nagendra,
I think either this file is old one or they have not updated. If NRIs can open NPS, then where is the question of closing the same when resident Indian turn to NRI?
I am a PSU employee. I have a lil confusion in EXIT rules. If the retirement age is 60, what is the need of existing NPS scheme after attaining the age of 60 ?
Secondly, do I need to contribute to the NPS, after attaining the age of 60? I guess, NOT.
waiting for your reply…
Dear Pushplata,
Many even after retirement try to work. In such situation, such postponement may be handy to them. You can’t contribute to NPS once you attain the age of 60 years.
Sir, I was LIC Agent and swavlaban card was issued to us which has PRAN number. Now I got state govt job in state university of Rajasthan. How can I switch my PRAN no. to my university. I don’t want new PRAN number. Which form is required…I am confused too much. Pls guide.
Dear Dolly,
As per my knowledge, you have to share the same PRAN with your employer to retain that. Check with your new employer for the same.
Sir,
I have dismissed from service. Now I want to withdraw my NPS balance because I am unable to contribute in NPS. My age is 36 years. Please suggest how can I withdraw my NPS balance
Vinit-Refer above post properly.
When I resigned from present government job and opt. premature exit from NPS and purchase Annuity then My present PRAN will be closed. On joining in New Job and apply for New PRAN, shall i get New PRAN account no. or Old Pran account no.
Nitu-Basically you have to use old PRAN. However, as the system is not so strict, they may allot you a new PRAN also.
Sir I have an NPS account with Kotak mahindra as pop but now I want to shift to enps. So I want to know if in future I close my NPS account then who would generate my claim id and the procedure to apply for the same ?
Deepak-POPs are just middlemen. Use NPS as per your comfort (either offline or online).
Sir,
Currently I have enps with karvy as cra ( opened online) but now I got selected in public sector job. Can I shift my NPS account to that sector or do I have to open a new one there with NSDL as CRA ???
Nishant-Use the same NPS.
Sir,
Could you please tell me that weather a guy working in corporate sector can shift to all India citizen model without quitting the job or permission of employer is required to do so.
Virendra-But if you quit and move to all India citizen model, then I don’t think your employer can contribute. Also, let me know the reason behind this thought.
can you provide some contact no. of NSDL to whom I can contact regarding NPS Withdrawal Problem
Swarn-Refer THIS.
Sir, now the partial withdrawal rules have been changed and hence one can get 25% of the accumulated fund after 3 years of active PRAN. I am having NPS since 2012. But when i am applying it is showing PRAN not active for 3 years. Why is so? Where can i check if ever my PRAN was inactive?
Akshay-There is no such status checking facility by PFRDA. Better you contact the POS of PFRDA and resolve the issue.
Sir
i am working currently in a government job.i have also been selected in another government job.which i want to join.But i have not taken NOC from my current employer to apply for that job.I have nps account in my present job.
Since i have not taken noc from my current employer will there be any problem in nps if i switch my job.
Please tell me possible remedy
Thanks in advance
Aman-As per me, NO.
sir
can you please explain in brief.i am very worried regarding this.
Aman-You will not face any difficulty and they can’t hold your NPS account.
Aman did you faced any difficulty, if yes how you overcame that could you please explain as I am facing the same problem at present.
Sir i got a pran number but when i m login this then not any amount contribution showing all are showing nil but every month from my salary 1590/- will deducted for pran what was the issue is they r not depositing or some other….?
Pooja-I think some issues with your account. Instead of waiting, better to visit the nearest POS of PFRDA immediately.
Want to know psu bank employee already in old age pension scheme whose age 55 now can eligible for open nps account till 60 years??
Akshit-YES, but USELESS.
Sir, i joined services of a scheduled bank in 2008 and worked till 2010. PF contributions were made by myself and bank till my leaving. Then i joined another scheduled bank and a nationalised bank which followed the NPS and contributions were made by bank and myself. This october i joined a public sector enterprise and they insist me to join pf. My basic salary is Rs. 40000. Do i have the option to choose NPS.
Balraj-NPS or EPF depends on your employer provided facility. Hence, better you check both.
Sir, I have been dismissed from psu job , can I withdraw my NPS amount & if I continue with the same in individual format?
Samar-Refer my above post for Government employees properly.
Hi,
My mother invested 50K for 2 yrs in NPS. She will turn 60 in Feb2018. Since the corpus is less than 2 Lakhs she has the option of 100% withdrawal. My question is : If she withdraws 100% (1 lakh) what will be the tax implication? will the entire amount be tax free or she has to pay some tax? She is a homemaker and never had any job. She has other income from FDS.
Sky-Assume it is taxable, then to her due to her NIL income, she doesn’t have to pay any tax liability. So keep calm.
Hi,
Her income from FDs do fall in taxable bracket – lets say total interest from FDs is 4 lakhs. So I wanted to get clarification whether the NPS corpus of 1 Lakh will be completely added to her taxable income?
Sky-There is no clarity either on this front either from CBDT or from PFRDA.
Hypothetically – If you were in my situation – will you withdraw 100%? what’s your advice? Can I take advantage of this lack of clarity and consider the full 100% taxfree?…40% is anyway tax free as per the clause…
Sky-If you invested for the sake of retirement, then why to withdraw NOW?
Basically invested for sake of tax saving during the 2 years. Didnt know at that time that there will option of 100% withdrawal from CRA as the corpus is too low. They are giving the option of withdrawing 100%. Hence since we have the option and this 1 lakh can be invested in better returning option so decided to withdraw full. But do not know the tax implication hence asked the question. My mother has sufficient income from FD for retirement right now but we saved a bit of tax by investing in NPS last two year.
Sky-Investing for the sake of TAX SAVING is the biggest mistake many do. However, keeping money in NPS funds also a best option.
Sir, can I close my current nps account and open a new one? As I am working in a govt org. And I am switching job to other govt org. But I don’t want to show this to employer as it is not through proper channel. Please guide if I can open a fresh account.
Rahul-But check the withdrawal options. Also, one person, one PRAN is the rule. Hence, your new employer MAY come to know your old PRAN.
Rahul Singh could you please explain how did you overcame the problem as I am facing the same problem at the moment. Your help would be highly appreciated.
Sir
I joined NPS in 2011 Tier-i account through my organization SBI. In May 2017 SBI dismissed/ terminated me from my job. As on date my total funds in NPS is Rs. 2,43,000/-. Now I want to close my NPS account. I am in a urgent needs of funds. Can I get 100% of my total funds or 20% of it. Or I convert this funds into tier-ii account then withdraw 100% of it can this possible. Please help me.
Nilesh-“If you exit before reaching the retirement age then you have to buy a pension product for the minimum of 80% of such accumulated corpus. The balance of the accumulated pension wealth (20%), after such utilization, shall be paid to the subscriber in a lump sum.”
Thanks a lot for your valuable advice. 80% of corpus I have to purchase for annuity plans. Which annuity plan is good ? I don’t have any idea about annuity plans. Can in near future I can avail loan against this annuity plan.
Please give your valuable advice.
Nilesh-LIC’s Jeevan Akshay VI.
Sir,
I am not completed 10 years in NPS. can I close my NPS account as my case is termination by employer. I got one mail from nsdlcra that you contact your popsp for special permission for withdrawal from pfrda. Can I avail special permission from pfrda. My POP-SP did not act on this what should I do.
Nilesh-Yes you can.
Dear Basavaraj,
The annuity and withdrawal limits are applicable to both Tier 1 and Tier 2.
Can I withdraw the whole amount in Tier 2 account as and when required without any restriction on purchasing annuities.
What would be the tax treatment of such withdrawals from Tier 2 NPS account.
Thankspls
Singh-Refer my post “Difference between Tier 1 and Tier 2 Account in NPS“.
Dear Sir,
I have been working with PSU bank since june-2013 and i am about to resign.
Please advice me about my NPS amount..
I vl no longer stay in INDIA..
I have around 4 lacs in my NPS A/c..
How can i withraw such amount?
Dhrumil-Please refer above post properly.
So basically i can not withraw my amount as it s written in PDF.
I need to buy any of the plans or need to invest.
So is there any loopeholes as i vl not b in INDIA anymore..
Please help
Dhrumil-Your understanding is right.
Sir,
Pls explain about buying a new pension product at the time of retirement or prior exit in case of private sector employee who wants to contribute on his own. Also what option to choose while opening e-nps a/c in SBI- Tier I or II?
Chakraborty-You have to buy annuity products available at that time in the market by insurance companies like LIC’s Jeevan Akshay VI. Choosing option is left with you. First, understand your requirement and also what is Tier 1 and Tier 2 accounts.
Sir,
I beg to say that, My father is retired teacher from Bihar state. I want to know the process for money withdraw from NPS account. He have all the document except my mother Adhaar card which required by agent. Due to not good relationship between Mom and Papa she cannot give her proof for the same. At the time of papa’s service he paid part salary as instructed by DEO (District Education Officer), in her account against the mom complaint.
Swarn-In whose name the account is?
Krishan Kant Jha (Account name is)
Swarn-If it is your father’s name, and whether your mother come forward to claim NPS?
Sir,
let me know one thing if contributor is papa then he is entitled to withdraw NPS amount using his self claim papers what the need of nominee Adhar card. and if he fails to provide the same what will the solution of this problem. So that papa can withdraw amount
Swarn-If it is your father’s name and he is alive, then he is the legal and right person to withdraw. The nomination will not come into picture. However, if he is not alive, then nominee has to claim.
I am Railway employee, I have serve with railway more than 10 year. I want to contribute VPF. Please guide me rule of VPF & its withdrawal
Ravi-Your EPF contribution is 12% and you are allowed to contribute around 88% of your salary (Basic+DA) as if VPF. Tax treatment and everything is same. Let me come up with a detailed post on this.
Sir, I was an employee of department of posts for the period of Apr 2007to May 2014. Then I was dismissed from service. Sir, what will happen to my NPS Ac.? Can I withdraw the deposited amount?
Deep-Nothing will happen to your NPS. As per above new rules you can withdraw them.
sir i am in state gov job since 4 years in madhya pradesh .now i am selected in Central gov job without any proper channel and.not inform about previous job. Now i want to join central gov job .can i open new nps account and suggest me what sould i do.
Suman-Why can’t you use the same NPS?
because i did not inform the department . and i want to join these new job.
aur mujhe dar h ki khi koi dikkat na ho isse . maine department ko btaya nhi mai purani job se directly rsign de kar nyi job join krna chahta hu
Suman-You can open.
koi problem to nhi hogi sir ..please explain
Suman-I can’t guarantee you without understanding how regulars or your employers work.
Suman could you please explain did you faced any problem regarding old pran number when you joined the new job and how you dealt with it as currently I am facing the same problem and needs help in this regard.
This is quite an helpful post about national pension system..You have explained it amazingly.Thanks for such post and please keep it up..
Jishnu-Pleasure 🙂
Dear Basavaraj,
thanks for the post. read this and other post of difference between Tier 1 and Tier 2 account and have understood more about this product. thanks!
i have some question, may be you could support me. I have a Tier 1 NPS acc0unt with my company. I work in private company. i have resigned my job and going out of India for new opportunity. My questions are:
1. Now that i have resigned and there is no contribution from company and me, will the account be automatically converted from Tier 1 to Tier 2?
2. If it gets converted from Tier 2, then there is no minimum contribution right?
3. I checked with HDFC (PoP) and they said i can do SIP only if have an account with their bank:(. if there is a minimum maintenance that i need to pay each year, then, how can i do it?
Please let me know if there is anything more i need to keep in mind.
Best Regards,
Sunil
Sunil-1) The invested amount will remain where it is (either in Tier 1 or Tier 2).
2) It will not automatically. It remain as it is where the investments are done.
3) Using eNPS you can do that or register for NACH.
Thanks for the quick reply.
if the account remains in Tier 1, do i need to continue the minimum contribution?
Sunil-Yes you can.
sir iam venkata subramani
sir i worked in central reserve police force nearest 10 years.resigned from service 2013 for some family circumstance .i am a member of nps. sir please intimate how to withdraw money from my account.and inform any contact number.no any received money after resignation from service .sir please solve my problem
Karthikeyan-Contact PFRDA.
Sir I have worked for 7 years and decided to resign my job how to get my cps amount and how to exit from the cps
Sai-CPS stands for?
contributory pension scheme (NSDL CRA)
Dear Sir,
I have worked for 13 months only in a Public Sector bank during January 2012 to Feb 2013. After resignation from bank in 2013 I have Joined Coal India Limited where is CMPF in place of NPS. So now My PRAN account is frozen due to not regular contribution. I have Rs. 95000/- in that NPS account as on date.
1. Please Advise me, What should I do now..? How to change previous employer details etc.?
2. Can I withdrawal whole amount as the accumulated corpus is less than Rs.1, 00,000/- ?
3. should I choose Exit options from National Pension System (NPS) ?
Udayvir-CMPF stands for?
1) If employer not providing NPS, then better you just activate PRAN and possible contribute on your own.
2) and 3) Refer the above withdrawal guidelines.
Thanks for your quick response.
CMPF – Coal mines provident fund.
dear sir,
plz tell
how to delete previous employer details from NPS account?
Dear Saurabh,
Why?
Sir i have completed my 7 years of service i am an govt employee can i withdraw my money for construction of my house plz ans me and tell me in case of self marriage can employee withdraw his money
Reyaz-I explained partial withdrawal rules above.
Sir I have recently joined govt job and I applied enps online and generated parn no . But my clerk is saying to apply online because ddo is to be linked . How to link ddo .
Clerk ask to apply offline. Sorry
Sarvir-You just provide your PRAN to him. Whether the process is OFFLINE or ONLINE investment is same right?
hai
I had worked in one of the state govt for 4 years for which i had one PRAN no and resigned, joined in another university as assistant professor which comes under UGC where they alloted another PRAN. Know ny question is how to transfer amount from one PRAN of mine to another PRAN .
Nirmala-You have to inform this to your existing employer and PFDRA. There is no had ruled process.
Hi Sir,
I am planning to opt out this option from this current year onward and my organisation is also contributing for the same.
As per the tax rule i can show maximum Rs.50000-00. So does it mean that it includes company contribution or excluding company contribution?
Please clarify me.
Thanks in advance.
Jay-Refer my latest post “NPS Tax Benefits – Sec. 80CCD(1), 80CCD(2) and 80CCD(1B)“.
Dear sir,
Iam working in Central government . I joined in 2006to the NPS scheme. so nearly i completed 10years of service. Presently i require money for purchasing a plot . so,
Is it possible to withdraw flexibility from the Account?
How much amount am i eligible to withdraw (% wise)
can i withdraw full (100%) amount ? and what is the Procedure for withdraw
After withdraw will i be continueing my account
waiting for your kind response
Thanking you
Rajesh yadav
Rajesh-Yes, you can withdraw from NPS for purchasing a land. Contact the POS of PFRDA.
Sir, I recently invested in NPS through ICICI and I have allotted a PRAN. Now my company is starting corporate scheme through HDFC. How can I transfer my existing investment to HDFC and continue to use same PRAN.
Sudarshan-It is better to use the same PRAN. You can provide it to your employer. I am not sure to what extent they manage the same NPS account. Let them come up with solution.
Sir I have resigned my central govt. Job and I have a NPS account. Now I gets a new govt. Job can I open a new NPS account.
Vikash-Why can’t use the old account?
In new job I am not showing my previous job and nps . can I get any problem
I have no any deduction in my nps
Vikash-As per rule, one person must have only one PRAN.
Sir, it means problem or not?…if we are not show new employer about our previous job. Then how we will included previous nps account new govt. Job plz suggest me…
Vishnu-It is your issue that you have to resolve.
HI i was a government employee for a bank and have corpus of 1lakh plus
can i do an early withdrawal if yes how do i go about it
please guide
Vasudha-I already replied “In case during this early exit, the accumulated corpus is more than Rs.1,00,000 but not eligible to buy any retirement product, then he can continue to contribute until his age is eligible for buying a retirement product.”
THanks i did read that but i am eligible to buy the retirement product my age is 34
can i withdraw it .. and whats the process to do so
Vasudha-That you have to check with insurance companies. Because it depends on what type of option you choose. However, in my view YES (If I go with LIC’s Jeevan Akshay VI).
Dear Basavaraj,
I invested online to NPS on 18-10-2016 but accidentally I selected 10 years tenure in lieu of 16 years, i.e., 18-10-2026. There is no option to change/rectify the mistake. Please tell me what to do. Will be grateful. I booked NPS through HDFC Pension Fund.
Rajat-Request for change with POS.
how & from which site?
Rajat-You can use the eNPS or contact the POS.
Dear Basavaraj,
I checked in eNPS but there is no option to change the tenure of years. Anyways, thank you very much. 🙂
Rajat-Then the option is to go with POS.
Dear sir
I was in a govt. Job from 2009 to 2011.somd money was deducted as epf .i quit the job in 2011. Now i am working in a private institute.i want to quit the nps scheme.total amount accumulated is less than 2 lakh.how can i withdraw the whole amount.as i have invested in other plans.and dont want to continue.
Rahul-Refer point No.2 from above post.
Sir,
I have worked in bank for one year from 2012-13. Then I resigned and joined central govt. There they told me to open a new NPS account and then we can transfer the amount in the old NPS account to the new one. Then they told they cant. Then the NPS account got freezed. Now the account is again open. So can I close / withdraw the amount in the old NPS account?If yes please tell me in details what to do first. Any withdrawal form required.? Kindly reply at the earliest.
Hari-Withdrawal rules explained above.
Kaya me apna nps fund nikal sakta hu
RAmesh-Please read above post properly.
Sir.. can employer consider the employer contribution into nps as employee income?
Siva-NO.
Dear sir..i have subscribed in NPS through my employer. For example,my contribution through salary towards NPS is 2000 and my employer contribution is the same 2000. now Wheater am i eligible to submit tax declaration for 24000 or 48000 per a financial year.
Thank u in advance.
Siva-Under different Sections of Income Tax, you can claim both investments.
Sir.. can employer consider the employer contribution into nps as employee’s income of the financial year?
Siva-NO.
Sir, I was working with a bank and after 5 years i was terminated as i made some mistakes. Now i am no more in govt service. Sir, all i want to know is will this affect my PRAN or NPS account in any way in future? Will it create any problem if i join other govt organisation? Also, can i shift my NPS to UOS sector from current corporate sector through form ISS-1 form?
Shashi-It will not affect your NPS. You can change the NPS.
Sir, do you mean i can continue with the same NPS account? Or, is it possible to open a new account with same PRAN number and keep using it for next Govt job if i get one in future?
Shashi-You can continue the same NPS.
actually Sir i applied to shift my NPS contribution POP to HDFC bank from my previous emplyer from where i got terminated. But today i came to know that my application is rejected by my POP . Kindly tell me how can i change my POP to a new Bank?
Kindly tell me the detailed procedure including which form i need to submit and to whom?
Shashi-What rejection reason they quoted?
Today i called them Sir and they said I have to submit form UOS-S6 not ISS-1S. And some more documents.
Thanks for your quick responses sir. You were helpful really.
They did not quote any reason Sir.
Shashi hope your problem is solved. I have talked to them regarding you and there is nothing to worry. You have to submit form UOS-S6.
SHASHI Just like you i have been working with a bank and my friend who was working with me also resigned his job and joined Central Govt later. Initially he also faced problem which you did but later on it went ok. Sometimes due to system error even it happens. So don’t worry removal or resignation has nothing to do with your NPS.
sir, i am working in cag deptt as auditor in central govt from 23 may 2016 and from the same day i got my pran no through deptt. now i have to join another post for inspector in cbec from january 2017. if i will take techical resignation from dis job den my pran will be shifted to another job via depp procedure. but i want to give resignation now frm dis job n will start new job fresh. so in dis case what will be my pran status? whether i can carry same pran or opt for another? Thanks
Vinay-You can carry forward the same PRAN.
I Ram Krishna was in railway service during June 2004 to may2007. I were given technical resignation through proper channel in Central Railway Nagpur division to join at BHEL Nagpur. I am in BHEL from may2007 to till now. When i were in Railway PRAN no. was not allotted to me. I have given many times applications regarding for PF withdrawal purpose but that time PF withdrawal was not applicable as government rule for NPS 2004.
Kindly give me advice for PF withdrawal from PFRDA without allotted PRAN no. or transferred to BHEL TRICHY PF trust Chennai. pls suggest to me if you have other ways of this solution.
I WORKED IN CENTRAL BANK OF INDIA. ON THAT TIME MY PRAN IS GENERATED. NOW I AM WORKING IN NEW INDIA INSURANCE. IF MY PRAN IS SHIFTED TO NEW INDIA THEN THE AMOUNT, DEPOSITED BY CENTRAL BANK(NOW STOPPED), CONTRIBUTION FROM MY END AND CONTRIBUTION OF NEW INDIA WILL BE ALL TOGETHER. WILL IT CREATE ANY PROBLEM TO WITHDRAW MONEY FROM THE ACCOUNT.
Sumit-It will not create any problem for withdraw.
THANK YOU SO MUCH SIR
iam bharath kumar working at SBH . iam having nps account and when iam trying to change my scheme preference it is showing the message “Request cannot be captured for this subscriber because scheme preference option is not allowed”
why iam getting this message
which scheme is best how can we decide
what about tier 2 is it tax saving or not?
for tier II whether employer will contribute or not?
please reply sir
Bharath-I am not sure of what went wrong. Check with POS or PFRDA. Regarding Tier 2, refer my earlier post “NPS Tier 2 – Alternative to Savings Account, FDs or Debt Mutual Funds?“.
Hello sir i was a state govt employ for only 11 month……and left the job but employer not created my pran account or number but monthly deducted 5 % from salary towards NPS….now how could i claim refund of NPS AMOUNT ….
Vinod-Check with your employer about delay.
Dear sir,
I would like to know about the rules of NPS system . I have taken NPS last year,but now i don’t want to continue it . so in this case what i have to do? how much amount i get back??
Rahul-The closure or withdrawal options are explained above. Please go through the full post.
sir i am working as Postal Assistant in department of Post. i joined in june 2005.sir now i want to take partial withdrawl from my tier 1 account.Kindly tell me the procedure of this.i have an medical emergency.
Rohit-It is explained in above post.
Sir i am working as field officer in special bureau govt. of india, i joined in service in 2005.sir i want to partial withdrawn in tire 1,kidly tell me procedure of this.
Pandey-Withdrawal rules explained above.
I was a central Government employee w.e.f. 31.01.2005 and I technically resigned from that job on 04.07.2016 due my selection in All India Institute of Medical Sciences (AIIMS), Rishikesh and I joined in AIIMS on 05.07.2016. I had applied through proper channel. I want to premature exit from NPS which was operated by me during my previous job and want to open a new account in my present job. Whether I can premature exit from that NPS? My total corpus is Rs. 1270000. What amount will I got on premature exit? What is the procedure of premature exit?
Manoj-Refer above post, it is clearly written that you can only opt for pension by buying an annuity.
Sir please clarify whether I can opt for premature exit from that NPS and open a new NPS in my new job or premature exit is not permissible and I have to carry on the old NPS account in my new job.
Manoj-I already pointed that premature possible but you have to buy annuity. Please refer above post properly.
If my nps amount got transfered to some else pran account..how can i get it back??is there any remedy available for the same
Monika-You can raise the issue with PFRDA.
sir as many user’s posted question abbout having two prans when they changed their job from one organizations to other without proper channel. but your replies are contradictory to some you have replied that you can carry on with old pran at your new emplpyer and to one user you replied that they might track your previous job.
So pls clarify it whether nsdl is an independent organization which dont care from where the money is ceedited to any NPS account as long as the minimum 6000 inr are deposited every year or at the time of switching job nsdl notice that employer of a particular pran account holder changed and they(nsdl)may send notice to both old and new employer or nsdl simply dont care.
2. and if by chnace someone opened two pran accounts and old account gets closed due to non deposit of minimum sum , in this case will new account would function properly.
Sanjay-I am clear, PRAN is unique to an individual. Rest left with individuals to decide their future.
if employ died after in 4 month than nominee can get job & other benifets. this case is medical department of rajasthan
Anirudh-Waht is your doubt?
My Compnay ICICI Bank has been decuting 10 % of Basic and contributing into my NPS Account for the past two years . I have also contirbuted RS.50,000 /- last financial year for Tax exception purpose .
Durig April 2016 , I have conttibuted Rs.50,000 for taxation purpose , I have retired from ICICI Bank at the 58 on 30th April 2016 . My questions are (1) Am eligible to withdrawl 40 % of corpras by prodcing proof of my company
retirement certifcate at the age of 58 or I have to wait 60 (2) If pension from when I will get pentions (3) If I want to continue can I contribute my saving in NPS till 60 years , kindly advise .
Muthu-Please refer Point No.5. Yes, on your own you can contribute to NPS up to 60 years of age.
Dear sir,
I am working in private sector Now my age is 28 years only.I have plan to open NPS account.But i am not sure i will be working my age of 60.Most possibly i will retire from private sector at my age of 40 to 45.So it possible to get the amount of my retirement age at 45? If yes I want to mention the retirement age anywhere?
or I can get the amount only on age of 60?
Thanks
RAveendran-You will get amount at age of 60. For your own purpose, they not change the rules.
Sir, I have joined AIIMS Patna as faculty in September 2012. Before joining I had working in ICMR, under the same Ministry, since 21st April 1988, and I was under old pension scheme. After joining AIIMS, I was told by authority that I won’t get benefit of my past service because AIIMS Patna was established in 2012 and hence I am eligible for NPS only. I was asked to apply for NPS. I was allotted PRAN under Tier1. Now DoPT has issued a circular stating that faculty who have joined AIIMS after tendering their Technical Resignation and was under old Pension Scheme will get all benefit of their past service and can continue their old GPF. Now in this situation I can’t avail both old Pension and NPS at the same time. I want to withdraw from NPS immediately. Can you please suggest me how to get exit from NPS? I have already made contribution over Rs.3.50 lakh. I shall highly appreciate if you kindly guide me for this.
Thanking you,
Sincerely yours,
Alok Ranjan
Alok-It is bit tricky. Suggest you to contact PFRDA.
Hi Sir,
I’m currently employed in public sector bank. I’m resigning for higher studies. My NPS account was opened 1 yr ago, and has accumulated amount less than 1 Lakh. Am I eligible to withdraw complete amount ? (since amount is less than 1 lakh but NPS account is only 1 year old )
If I cannot withdraw entire amount i’ll like to continue with NPS scheme as general citizen. Is it possible to change the account type from corporate to general citizen ? Where or whom should i request the same, to current POP-SP, or CRA ?
Ravi-Please read second point of above post.
Sir i worked in delhi govt before for one year..and i didnot take nps there..i resigned from there and joined railways and took nps account. Now i want to go back to delhi for same job due to personal reasons(i can cancel my resignation)…what to do with nps..(i just got nps number through mobile only..not given to office).please help sir….
Shaji-You can use the same NPS which you got from your second job.
Sir, I am a central govt employee in Paramilitary for last 3 years having nps account. Now I have selected for state govt job bt it is not through proper channel. i havent applied through proper channel nor have i disclosed at my new job place that i m already govt employee Should i carry on with the same pran no. in new job? If yes, then is there any job risk of not informing them abt previous job and will my previous nps money be secure? If no, then what should I do?
Sir, I m a cent. govt employee in Paramilitary for last 3 years having nps account. Now I have selected for state govt job bt it is not through proper channel. i havent applied through proper channel nor have i disclosed at my new job place that i m already govt employee Should i carry on with the same pran no. in new job? If yes, then is there any job risk of not informing them abt previous job and will my previous nps money be secure? If no, then what should I do?
Rajendra-You must have only one PRAN. But I am not sure about the job risk and all.
Sir,
I am in central govt. school. But now I got selected in state govt. school. I have joined in state govt.school without resigning in central govt. It was all in hosh posh. I have given my one month notice in central govt. They will relieve me in one month after summer vacations without any benefits.How would it effect my PRAN and NPS?
Radhika-You can use the same NPS and PRAN for state Govt job too.
Hi Sir,
I’m a Kerala government employee. Now I’m on Leave Without Allowance for five years since Jan 2016. I’ve joined service in July 2015. Neither my probation is declared nor is it regularised. I’m not contributing any amount since when I’m on Leave. What is that I have to do about my NPS account? Closing balance as on March, 16 is 86000 rs in my account. Can I withdraw the whole amount and open a new account once I join back to service? Please help me with your advice…
Looking to hear from you
Tintu-How long will be your leave?
I resigned from my job after 2 years of service in a central govt aided deemed university and my nps account has an accumulated sum of 2.5 lakhs (including employer contribution). Is it possible for me to withdraw the whole amount or atleast a part of it? If so what are the procedures for it? My employer has not informed anything regarding what has to be done with the nps?
Divya-Refer point number 2 of above post. You can only buy an annuity plan.
hi!! i am a central govt employee and have been registered for NPS by my office for salary deduction (10%). Now i am planning to resign my job. So i want to know 2 things-
1) Can I continue my NPS account (Tier-1) by contributing the minimum amount myself till my retirement age and will there be any problem at the time of annuation/ withdrawal????
2) Can I transfer my NPS account to another SBI branch/ Other bank (savings a/c)??? ( Currently it is linked with a SBI branch/salary a/c)
Sam-1) Yes. 2) YES.
I m serving in central Defence, if i am retire on 20 years of service , how will NPS provide me the amont Or will provide Like salary type ? And also its about 10 years in NPS Can i withdraw some important purpose ?
Minzi-Once you retire, then you have to buy an annuity plan. These plans provide you monthly payment as a salary for you.
RESPECTED SIR,I AM WORKING AT CKP DIVISON SOUTH EASTERN RAILWAY I HAVE PRAN AND NPS NO NOW I HAVE PASSED EASTERN RAILWAY AND I WANT TO JOIN IT WITHOUT INFORMING CKP DIVISON CAN I APPLY FOR NEW NPS AND PRAN THERE …WHAT IS THE PROCEDURE…
Rumeli-No, use the same old PRAN and NPS.
sir i have same question-if he join new job without informing, and create new nps and pran no. . is he face any problem in future or not.
please tell me sir.
Shyam-You have to inform employer and retain only one PRAN and submerge two NPS.
Sir,
Pl. advice on the following query
1) I want to deduct my VPF- Volunter provident fund. Can I opt this now.
2) which is better NPS or VPF ( as Employee provident fund ( EPF) is continue deduction in my salary)
3) what is different between Employer NPS or Employee NPS contribution
Patel-1) YES, you have to inform to employer about the same.
2) Both are equally good and bad.
3) Both invest in same NPS only the contributor is different.
Sir,
I have worked as Police Constable for 4 years in Mandya District, and resigned to that job last month. My NPS account have near Rs 150000/- Can i get that amount now and what are the procedures are there to get that amount.
Lokesha-Please read above withdrawal rules for better understanding.
Dear Sir/ Madam,
Request you to provide information on the following queries at the earliest:
1) My mother retired this year when she turned 58 years, can she still invest in NPS?
2) Is there any lock in period for NPS investment? i.e. If the investor starts investing in NPS at the age of say 58 years, can he withdraw his investment at the age of 60 years?
3) If the investment is less than Rs 2 Lakhs, can 100% of the invested amount be withdrawn?
Thanks and Regards,
Juhi Lakhotia
Juhi-1) She can contribute up to the age of 60 years. After that no fresh contribution be allowed. But she can defer her retirement.
2) NPS will come with lock-in as it is allowed to withdraw only after 60 years of age or partial withdrawal in special cases.
3) Withdrawal is not based on how much you withdraw. Withdrawal rules applies and same even to Rs.1 Cr too.
Dear sir,
Iam working in Central government . I joined in 2004 to the NPS scheme. so nearly i completed 11 years of service. Presently i require money for purchasing a plot . so,
Is it possible to withdraw flexibility from the Account?
How much amount am i eligible to withdraw (% wise)
can i withdraw full (100%) amount ? and what is the Procedure for withdraw
After withdraw will i be continueing my account
waiting for your kind response
Thanking you
radha k
Radhakrishna-It is explained above. You can withdraw 25% of the contributions made by him and standing to his credit in his individual pension account, as on the date of the application for withdrawal. Read the above post properly. I explained it in detail. You have to contact PFRDA for withdrawal.
Dear Basu,
I have subscribed to both tier 1 & tier 2 for NPS. Equal contributions of 6K to start with.
1. Can i increase or decrease my monthly contribution?
2. Tier 2 contribution can be withdrawn anytime? Does it have any tax liability.
I am 39 years old & have no tax savings option. My retirement planning is PF + NPS oriented.
Regards
Gaurav-1) It depends on you. So you have to decide.
2) I already explained the same in my earlier post. Please refer it “Difference between Tier 1 and Tier 2 Account in NPS“.
Dear Sir
I am an private IT sector employee in a MNC want to join NPS and my requirement is:
1) I do NOT want any liquidity for the total investment amount till my death.
2) I want regular monthly pension amount “till my death” and not keen to pass on any further benefit to anyone else at my death.
Which would be the ideal choice for a private sector employee like me.
Thanks in advance
Vinod
Vinodkumar-1) You don’t want liquidity till your death? Then for whom you want to invest in NPS?
2) Your first and second wish contradict each other. Think and decide first of what you need.
Sir
if I close my NPS account as I am resigning from my current then in future if I join another job can I open again nps account with new pran no
Nisha-One person can have only one NPS and PRAN.
Hey,
I worked with Corporation Bank for 1 year and 5 months. Thereafter i resigned to pursue my masters. I want to withdraw from this NPS system. It will be great f you can the procedure.
Thank you
Vini
Vini-You have to contact PFRDA. But check the above rules.
Sir, I m a cent govt employee for last 5 years having nps account. Now I have selected for other cent govt job bt it is not through proper channel. Should i carry on with the same pran no. in new job? If yes, then is there any job risk of not informing them abt previous job and will my previous nps money be secure? If no, then what should I do?
Devendra-You can carry forward the same account. No risk at all. You can carry on.
Sir what is lump sum 20% 60% of accumulated corpus. In what manner it will be paid. And after the age of 60 being a nps tier 1 subscriber we need to buy pension product of 40%, pension will be paid in monthly basis then when we will get our principle(invested 40%) amount.. Sir clarify me.
Jayanta-The 60% is from your total accumulated corpus. For buying annuity from remaining 40%, there are various options like return of 40% amount, increase in yearly annuity, cease of pension once the death of NPS member and so many. Depending on your choice the annuity will be fixed.
Sir, I recently resigned from a PSU bank to pursue further studies. After completion of that I may join another sector which may or may not have NPS. What should I do to my NPS account? As my future organisation is uncertain. Will my account be active if no contribution is made to that for years? Or can I make my own contribution any way?
Nawab-It will be active and if you want then you can do your own contribution.
Sir I have been working in state govt. Of odisha and contributing in NPS tier-I since it’s creation. Sir give suggestion whether I could able to withdraw money in normal circumstances. If yes then please help me regarding the procedure and if no then suggest the alternate way. Thanking u
Shiva-I already explained the liquidity issues with NPS in above post.
Hi Basu,
Please tell about the annuity taken after 60(40% of total amount).
1.Till what age person or spouse will get the pension?
2.What will happen after his/her death?
Adiya-There are different options one can chose and they are as below.
1) Annuity payable for life at a uniform rate to the annuitant only.
2) Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as
you are alive.
3) Annuity for life with return of purchase price on death of the annuitant
(Policyholder).
4) Annuity payable for life increasing at a simple rate of 3% p.a.
5) Annuity for life with a provision of 50% of the annuity payable to spouse
during his/her lifetime on death of the annuitant.
6) Annuity for life with a provision of 100% of the annuity payable to spouse
during his/her lifetime on death of the annuitant.
7) Annuity for life with a provision of 100% of the annuity payable to spouse
during his/her lifetime on death of the annuitant and with return of purchase price on
death of the spouse. If the spouse predeceases the annuitant, payment of annuity will
cease after the death of the annuitant and purchase price is paid to the nominee.
Sir , I worked in UIIC from Nov 2013 to April 2014 and later I resigned. Till that time i was not registered with PRAN but the deductions were made from my salary . Now I am working with Ministry of Finance and my PRAN card is also made . When I asked UIIC to credit my money in my NPS account they agreed to make a DD in favour of my current employer but my present employer is refusing that they cannot credit the money citing the reason that under what head they will credit the money . Can the money that was deducted by my earlier employer be credited to my PRAN account . Kindly explain the available options.
Nikhil-I think no.
What will happen with the money that was deducted from my earlier employer ?? Will it remain unsettled ??
Nikhil-I think so. Because they did the mistake. Otherwise, let them pay to you upfront and you deposit in NPS account. That can be possible.
Respected Sir,
Presently i am central government employee working as 15 months covering under NPS system sir.I was selected for higher post in Tamilnadu state government job sir.Now i interested to join this job shall i continue of NPS system of same PRAN number issued to state govt job sir.If possible what are the necessary documents required to convert to state govt field sir.Otherwise i can withdraw amount under NPS system and apply for new one while joining state govt job sir.
Karthi-Yes, you can continue the same NPS. You provide this PRAN to your new employer.
Sir if he will ask how u made this nps card without govt. Job. If they will ask that you are govt. Employee then why you did not tell me before. What will happen sir…any job risk
Visnu-To invest in NPS it is not required that one must be Govt employee.
Sir I would like to know is after 60 years wben v retaires from cg job can v withdraw 100% money from nps if I dont need a pension
Varghese-You can’t.
Presently i am central govt employee sir.I got higher post in state govt job whether i can continue under NPS system while changing job. what are necessary documents required sir.
Karthi-check that with your new employer.
Dear Sir
I am a govt employee and previously i was working in public sector bank where my nps account was opened but when I joined the new govt job after resigning from Bank then again my NPS account was opened, later on when it came to light that I have two accounts then my present employer got the procedure completed to close the account which was opened later. But after two and half years, in SEP 2015 I got the message that showing the money is being credited to the account which was closed by my present employer. Now I want to know that how can I merge both the accounts or the options available to me at present. Please help.
Abhinav-Raise the issue with PFRDA through your employer.
Just like Santwana (December 16, 2015 at 2:59 AM), I have also contributed for 3 years in NPS Tier I account and have now resigned from my job(used to work for a Nationalized bank) due to personal reasons. There is also no future employment opportunity for me too, and hence I don’t want to continue the account and withdraw the entire amount (approx. Rs.2,50,000). No contribution has been made in the said account for the last 4 months and also there will not be any contribution in the future.
In reply to Santwana, you have said ‘Yes’ it’s possible to withdraw the entire amount but you have not mentioned the process of withdrawal. I would be highly obliged to you Sir, if you kindly tell the process of withdrawal in such cases. Looking forward for your kind reply.
Gomesh-Contact PFRDA.
My question is, i am invest in NPS Swavlamban Rs 4000 (year 2015 ,1st yr) now i exist from this,so what can i do for my returning my money from nps, pls suggest.
Sameer-You are allowed to withdraw only after age 50 or a minimum tenure of 20 years, whichever is later.
Hi Basu,
As per Tax slabs of 10% , 20% and 30% how much actual Tax an individual can save with INR 50,000 of NPS deposit?
Say his 80C is already fulfilled to 1.5Lac limit.
Biswaroop-It is hard to say without knowing the NET INCOME.
Considering the NET Incomes
8Lac and 14 Lac
What will be the NPS related TAX rebates (considering the 80c is complete fulfilled)
Kindly reply
hi sir i resigned to state govt job and joined in central govt job i want to close my PRAN card and i want to apply a new it plss tell how to close it and how days will it take to close
Kalyani-Please contact PFRDA.
Sir I work as central government employee two years and I have 2 lakh in nps account I leave my job and join state government job here there is two year probation period in which no contribution of nps can I use my same account of nps after two years what will happen to my account without two year contribution of nps fund
Tanwar-You can use it. There is a penalty of Rs.100 for each non paying years. You have to pay it activate it again to start contribution.
I have contributed for 3 years and now resigned from my job due to personal circumstances. There is also no future employment opportunity, so I donot want to continue the account and withdraw the entire amount. There has not been any contribution since last 6 months and also there will not be ant contribution in the future. The amount is around 250000. Can I withdraw the entire amount.
Santwana-YES.
Resigned kiye hue employees ke liye NPS ka rupaya withdraw karne ka kya procedure hai Tonagatti Sir ji
Hemant-You have to approach NPS servicing points.
Myself cg employee contributing to NPS for over eight years. Net corpus as of now is 730000. My new born baby was operated for hirschsprung but now got infected for which he needs better treatment. Now, can I withdraw money from NPS fund for this purpose.
Saika-Please read above withdrawal rules.
Hello Basu!
I follow your articles closely and thank you for sharing your valuable views.
Let us assume that we have an employee in corporate sector at 30% tax bracket. I would assume that he would go for NPS only if he is a pessimist about his career and future wealth creation prospects i.e. he expects that he will have very less retirement income. Since proceeds are taxable at withdrawal including the annuity payments, NPS will not be tax effective for someone who will still be in 30% or 20% tax bracket during retirement years.
However, if the personal tax is completely done away with in the long term, then it may make sense to invest and take the tax benefit of 50000 now itself.
What would you suggest to this employee from corporate sector at 30% tax bracket (assuming he has exhausted all other tax planning schemes PPF,EPF, other 80C deductions to the fullest extent)?
Thanks in advance.
Regards,
SB
Bhattacharya-I completely agree with the current status of taxation. In my view, never follow a readymade product, especially for retirement. Instead create your own retirement corpus.
How do we create our own corpus plan?
Dear Anjali,
By investing in equity and debt products and customizing as per your risk appetite and time horizon.
Sir, I am central govt employee and have been holder of nps account since 5 years here. however now i m resigning this job and joining another state govt. job. i havent applied through proper channel nor have i disclosed at my new job place that i m already govt employee…and hence i m resigning…what will be consequences of NPS account now..bcoz..in state govt also they have nps account…can they get it know about my previous nps account…
Janavi-You have PRAN right? Through this they may track your already existing NPS. Better to disclose the same to your new employer.
hello
i have one confusion regarding withdrawal from nps.
If somebody has contributed for say 5 years and want to exit from nps. say total corpus is appx 3 lacs
Rule says you need to contribute for atleast 10 years.
then what will happen to the corpus if one exits in such situation.
Anuj-First let me know what type of NPS contributor you are. Based on that, I already explained the rules as above.
Hi sir,
I have resigned from government services to do higher studies. My total corpus in NPS is less than 1 lakh. Can I withdraw total money? Could you provide me the withdrawal details.
Mohan-Please read second point of above post.
Hi Basu,
My total money in NPS teir-1 account is Lessthan one Lakh. I have resigned from job for higher studies. As my money fall below one lakh, can I withdraw 100% or only 20% is possible(premature withdrawal). And also please let me know the withdrawal process.
Mohan-Yes, you can withdraw. Contact your employer or PFRDA.
Dear sir,
I am a NPS subscriber n works in a government organisation. My corpus size is around Rs 5,00,000 and I have NPS account since last 4 yrs as it was mandatory from our department but now I am switching from my present job where PF is deducted instead of NPS.. I want to exit from NPS … As I need money. Can I close the NPS account and use the money. Kindly advise…
Rohit-You are holding the Tier 1 NPS. In this case, you are not allowed to close this. Instead, there are certain conditions of withdrawal-like “This is a non-withdrawable account wherein one will not be able to withdraw his funds until he attains the normal retirement age of 60 years. To withdraw from his Tier I account at anytime before 60 years of age, he would be required to invest at least 80% of his pension wealth to purchase a life annuity from any IRDA – regulated life insurance company. He may withdraw the remaining 20% of his pension wealth as a lump sum.”
Hi Basu,
I have one query regarding NPS.
My mother has paying for NPS yearly 1000Rs and some government scheme (Swalambam) also adding for this 1000Rs.
Here the thing is my mother date of birth wrongly printed(DOB year 1962) on that.My mother has been paying since two years.Actually my mother(DOB year 1953) age is crossed 60 years.In rural area some body forced to put money on that without awareness. We got NPS card with my mother name from NSDL.
1.Shall i continue her to pay that?
2.Will it be possible to withdrawal ?
3.If you suggest to pay that, i want add my name is nominee.Please let me know nominee change procedure.
Please advice me
Chennaiah-First let her rectify the date of birth. This will change all eligibility creteria. First apply for correction with NSDL.
Dear Basavaraj,
I am a state Govt. Employee, 32 years old. I am regularly depositing GPF and PPF. I save Rs. 1.5 lakh for tax purpose. Under section 80CCD of the Income Tax Act,1961, it is proposed to give NPS an additional tax benefit on investments of up to Rs 50,000 a year in budget 2015. This is over and above Rs. 1.5 lakh a year under section 80C. I can save tax Rs. 5000.00. But long continuation, it is very difficult. Only the amount withdrawn by the subscriber after the age of 60 is taxable. I hope my GPF and PPF are enough for retirement planning for me. The NPS at least gives an option to invest 50 percent of savings in equities. I hope focus on 100 percent equity-oriented investments to create wealth for long-term goals. Can I proceed with GPF, PPF and MFs other than NPS?
Dr.Anjan-Yes, you are on right track. Please avoid NPS.
Sir can you explain more about the pension products.
Should we buy govt specified or can we choose our own
Naveen-Better you create your own wealth.
i am talking about APY(ATAL PENSION YOJNA)…not about NPS.
Akshat-In case of APY, they only mentioned that, exit before 60 years of age possible only in case of death of subscriber. However, there is no such clarification whether they return the corpus with accumulated interest or the amount which subscriber invested. Let us wait for some more days to get clarity.
In case of death of the Subscriber due to any cause: In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
In pension corpus they haven’t mentioned with interest and one of my friend called pfrda office and he know that they will not pay interest if subscriber die before 60 age.anyway can u please check it with your sources? Thanks.
Akshat-It will be with interest when it is mentioned as accumulated pension (this includes principal of what you pay and interest).
my question regarding APY,i and my wife both enrolled for that,but more facts regarding APY i know now as if subscriber died before 60 years then pfrda paid only paid amount to nominee,which is worse part of it and second worse thing is they pay only 5000 rs after 60 year where as if i deposit it with post then also i get same or more interest with principal.i want ur view on it sir…
Akshat-In case death of a subscriber, the pension will continue to spouse. After both subscriber and spouse dies, then the corpus will be returned to their nominees.
NO BEFORE 60 IF ANYONE DIES THEN ONLY SUM OF TOTAL WHICH U PAID TO PFRDA IS GIVEN BACK TO US .NOT EVEN INTEREST..IS IT TRUE?
Akshat-It is not true. Please read the exit options before attaining pension age for both Govt and normal individuals. You notice that in case of govt employees, spouse must buy pension product of around 80% and 20% will be returned back. But in case of normal citizens, they specifically mentioned as “Accumulated corpus”, this includes interest also.
Sir, I have resigned from central govt job in 2014 where I worked only for 6 months. after that I was unemployed for a year when due to helath issues I couldn’t wind up the whole mess, and then joined a private company where employees are not encouraged for NPS. I was under the impression that my NPS will turn inoperative once I resign, However my NPS is continuing to operate and now I don’t want it to be functional. So do I need to contact my ex employer for withdrawal/ cancellation?
Tara-You have to approach PFRDA point of services.
Thank you. That means I can contact any nearest POP as mentioned on NSDL website; and I need not go to the office where I worked before to get this done?
Tara-Go to PFRDA POS.