NPS partial withdrawal rule to change from January 1 — Check who will be affected

The Pension Fund Regulatory and Development Authority (PFRDA) has recently issued a new order regarding National Pension System (NPS) withdrawals, according to which customers of all government sectors will have to submit their application for partial withdrawal through their associated nodal offices. This includes subscribers from central/state government and central/state autonomous bodies. The same will be applicable from January 1, 2023.

In simple words, this means that the said subscribers will have to submit supporting documents now to substantiate the reasons for partial withdrawal.

In the wake of the COVID-19 pandemic, the pension regulator, in January 2021, had allowed NPS subscribers to request a partial withdrawal online through self-declaration and documents were not required to be submitted. With the abating of pandemic-related difficulties and relaxation of lockdown restrictions, PFRDA said that the online partial withdrawal facility from NPS through self-declaration will no longer be available for government sector subscribers.