The Pension Fund Regulatory and Development Authority (PFRDA) on December 28, 2021 has issued the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Second Amendment) Regulations, 2021 to further amend the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015.
The following amendments have been made:
• In regulation 3, which specifies Exit from National Pension System for government sector subscribers, in sub-regulation (a)(ii) the following paragraph has been inserted:
“The subscriber shall have an option to exit from the National Pension System at any point of time and frequency by submitting a request to National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose. In case of death of subscriber during the period of deferment, such deferred amount of the subscriber shall be paid in the preferential order of nominee(s) followed by legal heir(s).”
• In regulation 3, which specifies Exit from National Pension System for government sector subscribers, in sub-regulation (a)(iii) the following paragraph has been inserted:
“The subscriber shall have an option to purchase an annuity at any point of time during the deferment period by submitting a request to National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose.”
• In regulation 3, which specifies Exit from National Pension System for government sector subscribers, in sub-regulation (a)(vi), has been substituted, namely:
“where the subscriber desires to continue in the National Pension System and contribute to his retirement account beyond the age of sixty years or the age of superannuation, he or she shall have the option to do so by giving in writing or in such form as may be specified, and up to which he would like to contribute to his individual pension account but not exceeding seventy-five years of age. Such option shall be exercised at least fifteen days prior to the age of attaining sixty years or age of superannuation, as the case may be to the central recordkeeping agency or the National Pension System Trust or any other intermediary or entity authorized by the Authority for the purpose. In such cases, individual pension account/ Permanent Retirement Account shall require to be shifted from Government sector to All citizens including corporate sector and the expenses, maintenance charges and fee payable under the National Pension System in respect of the said individual pension account/ Permanent Retirement Account, shall continue to remain applicable;
Provided further that such subscriber who has not exercised the option within the period of fifteen days, so stipulated, but desires to continue with his individual pension account under National Pension System, beyond the age of sixty years or the age of superannuation, as the case may be, and to the extent so permitted, may do so by making an application in writing with reasons for such delay to the National Pension System Trust. The authorized officer of the National Pension Trust, may condone such delay, if any, in exercise of such option by the subscriber, as he may deem fit, having regard to the cause so shown or on any other relevant matter.
Notwithstanding exercise of such option, the subscriber may exit at any point of time from National Pension System, by submitting a request to central recordkeeping agency or the National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose;”
• In regulation 3, which specifies Exit from National Pension System for government sector subscribers, sub-regulation (d) has been inserted, namely:
“Where the subscriber who, before attaining the age of superannuation is identified as missing person by the nodal office or the employer, based on the (i) First Investigation Report (FIR) lodged with the concerned police station and a report from the police that the subscriber has not been traced despite all efforts made by the police and (ii) Indemnity bond from the nominee(s) or the legal heirs(s) in favour of National Pension System Trust that all payments will be adjusted against the payment due to the subscriber in case he or she appears on the scene and makes any claim, then twenty percent of the accumulated pension wealth shall be paid as an interim relief in lump sum to the nominee(s) or legal heir(s), as the case may be, of such subscriber and the remaining eighty percent out of the accumulated pension wealth of the subscriber shall be mandatorily utilized for purchase of annuity after determination of subscriber as missing and presumed dead, as per the provisions of the Indian Evidence Act 1872 and amendments thereto:
Provided that such annuity contract shall be made as per proviso (i) of sub-regulation (c) of Regulation 3.”
• In regulation 4, which specifies Exit from National Pension System by citizens, including corporate sector subscribers, sub-regulation (a) (i) has been substituted, namely:
“Where the subscriber does not exit from the National Pension System beyond the age of sixty years, or the age of superannuation, as the case may be, shall continue to remain subscribed to the National Pension System till he or she attains the age of seventy-five years. Provided further that a subscriber having any employee-employer relationship, the individual pension account/ Permanent Retirement Account shall be shifted from the employer to all citizens model.
Notwithstanding in such automatic continuation, the subscriber may exit at any point of time from the National Pension System, by submitting a request to National Pension System Trust or any intermediary or entity authorized by the Authority for the purpose. In case of death of subscriber during the period of continuation, the entire accumulated pension wealth of the subscriber shall be paid to the nominee(s) or legal heir(s), as the case may be, of such subscriber. The nominee(s) or legal heir (s) of the deceased subscriber shall have the option to purchase any of the annuities being offered upon exit, if they so desire;”
• In regulation 4, which specifies Exit from National Pension System by citizens, including corporate sector subscribers, in sub-regulation (a) (ii) at the end the following paragraph has been inserted:
“The subscriber shall have an option to exit from the National Pension System at any point of time and frequency by submitting a request to National Pension System Trust or any intermediary or entity authorized by the Authority for this purpose. In case of death of subscriber during the period of deferment, such deferred amount of the subscriber shall be paid in the preferential order of nominee(s) followed by legal heir(s).”
• In regulation 4, which specifies Exit from National Pension System by citizens, including corporate sector subscribers, sub-regulation (e) has been inserted, namely:
“where the subscriber who, before attaining the age of superannuation is identified as missing person by National Pension System Trust, based on the (i) First Investigation Report (FIR) lodged with the concerned police station and a report from the police that the subscriber has not been traced despite all efforts made by the police and (ii). Indemnity bond from the nominee(s) or the legal heirs(s) in favour of National Pension System Trust that all payments will be adjusted against the payment due to the subscriber in case he or she appears on the scene and makes any claim, then twenty percent of the accumulated pension wealth shall be paid as an interim relief in lump sum to the nominee(s) or legal heir(s), as the case may be, of such subscriber and after determination of subscriber as missing and presumed dead as per the provisions of the Indian Evidence Act 1872 and amendments thereto, the remaining eighty percent out of the accumulated pension wealth of the subscriber shall be paid to the nominee (s) or legal heir(s), as the case may be, of such subscriber:
Provided that that proviso (i) and (ii) of sub-regulation (c) of Regulation 4 shall be applicable.
• In regulation 6, which specifies Conditions to apply for exit and withdrawal, sub-regulation (e) has been substituted, namely:
“The family members as specified under the service rules or on the basis of the legal heir certificate of the deceased subscriber, as the case may be, or subscriber upon invalidation or disability during service, avails the option of additional pensionary relief provided by the Government or employer, the Government or employer shall have the right to adjust or seek transfer the part or full accumulated pension corpus of the subscriber to itself as per the applicable service rules. The subscriber or family members of the deceased subscriber availing such benefit shall specifically and unconditionally agree and undertake to transfer the part or full accumulated pension corpus as per the applicable service rules to the Government or employer, in lieu of enjoying or obtaining such additional reliefs like family pension on death or pension or any other pensionary benefit on invalidation or disability provided by the Government or employer. The remaining accumulated pension corpus, if any, in case of death shall be paid in lump sum to the nominees (s) or the legal heir(s), as applicable. In case of invalidation or disability, the same shall be paid to the subscriber:
Provided in case of Central Government employees, the provisions of CCS NPS Rules 2021 and amendments thereto shall be applicable.”
• Regulation 7, which specifies Conditions of withdrawals under National Pension System has been substituted, namely:
“Conditions of exit or withdrawals or the claim settlement under National Pension System.-(1) A subscriber or the nominee(s), family member(s) as specified under the service rules or legal heir(s), as the case may be shall submit the exit, withdrawal or the claim settlement application along with the required documents, for the purpose of withdrawing the benefits upon exit as provided in these regulations, on or before the expected date of exit from the National Pension System to the National Pension System Trust or the central recordkeeping agency, acting on behalf of it or any other entity authorized by the Authority. Central recordkeeping agency or National Pension System Trust may on receipt of such an application for exit, withdrawal or claim settlement from a subscriber or the nominee(s), family member(s) as specified under the service rules or legal heir(s), as the case may be in the specified form and subject to fulfilment of conditions so specified, may allow exit or, withdrawals or the claim settlement from the National Pension System in the mode and manner permitted under these regulations and guidelines, circulars, orders or notifications issued by the Authority for the purpose.
[Notification No. PFRDA/12/RGL/139/8]
