TaxTMI 
TaxTMI 
Key amendments in PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015
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....ey amendments in PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015 <br>News and Press Release<br>Dated:- 20-12-2025<br><BR>Amendments primarily aimed at the non-government sector, also rationalize provisions for government sector Measures to provide subscribers greater flexibility, choice and autonomy in investment decisions and aid managing accumulated pension wealth In furtherance of its mandate to promote old-age income security and protect the interests of subscribers, the Pension Fund Regulatory and Development Authority (PFRDA) has notified amendments to the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015, today. The amendments are primarily aimed at the non-government sector (All Citiz....
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....en Model and Corporate Sector), applicable uniformly to both Common Schemes and the Multiple Scheme Framework (MSF), while also rationalizing certain provisions for the government sector. Finalized after extensive stakeholder consultations, these measures aim to provide subscribers greater flexibility, choice and autonomy in investment decisions and managing their accumulated pension wealth, recognizing that non-government NPS participation is voluntary. Clear and well-structured exit provisions are expected to encourage entry and sustain participation by balancing subscriber needs and pension objectives across different stages of their life cycle. Overall, the amendments reflect evolving subscriber needs and seeks to make the NPS more inc....
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....lusive, responsive and subscriber-friendly, while safeguarding long-term retirement income security. The key areas that have been revised are outlined below in a comparative tabular format: Sl. Earlier stipulation Revised stipulation I. Non-Government Sector (All Citizen Model and Corporate Sector) Changes applicable uniformly to Common Schemes (CS) & Multiple Scheme Framework (MSF) Lock-in period 1 All Citizen Model: Minimum lock-in period to be eligible for premature exit → 5 years All Citizen Model (CS & MSF): Minimum lock-in period removed Normal Exit 2 All Citizen Model: Vesting period → Till 60 years of age to be eligible for normal exit All Citizen Model (CS & MSF): Vesting period → 1....
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....5 years or till 60 years of age (whichever is earlier). 3 Corporate Sector: Vesting period → Till age of retirement / superannuation Corporate Sector (CS and MSF): Vesting period → Till age of retirement / superannuation (Remains same) 4 All Citizen Model & Corporate Sector: Up to 60% lumpsum; At least 40% annuity All Citizen Model & Corporate Sector (CS & MSF): Up to 80% lumpsum; At least 20% annuity 5 All Citizen Model & Corporate Sector: For corpus ≤ Rs.5 lakh → 100% lumpsum All Citizen Model & Corporate Sector (CS & MSF): a) Corpus ≤ Rs.8 lakh: 100% lumpsum or SLW or SUR (or) Up to 80% lumpsum & At least 20% annuity b) Corpus > Rs.8 lakh ≤ Rs.12 lakh: Up to Rs.6 lakh as lumpsum and bala....
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....nce as SUR for min. 6 years or annuity. (or) Up to 80% lumpsum & At least 20% annuity c) Corpus > Rs.12 lakh: Up to 80% lumpsum & At least 20% annuity Premature Exit 6 All Citizen Model & Corporate Sector: Up to 20% lumpsum; At least 80% annuity All Citizen Model & Corporate Sector (CS & MSF): Up to 20% lumpsum; At least 80% annuity (Remains same) 7 All Citizen Model & Corporate Sector: For corpus ≤ Rs.2.5 lakh → 100% lumpsum All Citizen Model & Corporate Sector (CS & MSF): a) Corpus ≤ Rs.5 lakh: 100% lumpsum or SLW or SUR (or) Up to 20% lumpsum & At least 80% annuity b) Corpus > Rs.5 lakh: Up to 20% lumpsum & At least 80% annuity Exit due to Death 8 All Citizen Model & Corpora....
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....te Sector: 100% lumpsum; Option for annuity, if desired. All Citizen Model & Corporate Sector (CS & MSF): 100% lumpsum; Option for annuity, if desired. (Remains same) Additionally, option for availing SLW or SUR. II. Individuals joining NPS after age of 60 years (All Citizen Model) Normal Exit 9 Vesting period → 3 years to be eligible for normal exit Vesting period removed 10 Up to 60% lumpsum; At least 40% annuity Up to 80% lumpsum; At least 20% annuity 11 For corpus ≤ Rs.5 lakh → 100% lumpsum a) Corpus ≤ Rs.12 lakh: 100% lumpsum or SLW or SUR. (or) Up to 80% lumpsum & At least 20% annuity b) Corpus > Rs.12 lakh: Up to 80% lumpsum & At least 20% annuity Premature Exit 12 Up t....
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....o 20% lumpsum; At least 80% annuity Not applicable as the vesting period has been removed Exit due to Death 13 100% lumpsum permitted; Option for annuity, if desired. 100% lumpsum permitted; Option for annuity, if desired. (Remains same) Additionally, option for availing SLW or SUR. III. Government Sector Normal Exit 14 Up to 60% lumpsum; At least 40% annuity Up to 60% lumpsum; At least 40% annuity; (Remains same) 15 For corpus ≤ Rs.5 lakh → 100% lumpsum a) Corpus ≤ Rs.8 lakh: 100% lumpsum or SLW or SUR (or) Up to 60% lumpsum & At least 40% annuity b) Corpus > Rs.8 lakh ≤ Rs.12 lakh: Up to Rs.6 lakh as lumpsum and balance as SUR for min. 6 years or annuity. (or) Up to 6....
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....0% lumpsum & At least 40% annuity c) Corpus > Rs.12 lakh: Up to 60% lumpsum & At least 40% annuity Premature Exit 16 Up to 20% lumpsum; At least 80% annuity Up to 20% lumpsum; At least 80% annuity; (Remains same) 17 For corpus ≤ Rs.2.5 lakh → 100% lumpsum a) Corpus ≤ Rs.5 lakh: 100% lumpsum or SLW or SUR (or) Up to 20% lumpsum & At least 80% annuity b) Corpus > Rs.5 lakh: Up to 20% lumpsum & At least 80% annuity Exit due to Death 18 Up to 20% lumpsum; At least 80% annuity Up to 20% lumpsum; At least 80% annuity; (Remains same) 19 For corpus ≤ Rs.5 lakh → 100% lumpsum a) Corpus ≤ Rs.8 lakh: 100% lumpsum or SLW or SUR (or) Up to 20% lumpsum & At least 80% annuity b)....
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.... Corpus > Rs.8 lakh ≤ Rs.12 lakh: Up to Rs.6 lakh as lumpsum and balance as SUR for min. 6 years or annuity. (or) Up to 20% lumpsum & At least 80% annuity c) Corpus > Rs.12 lakh: Up to 20% lumpsum & At least 80% annuity IV. Other changes Entry and Exit Age 20 Maximum entry age up to 70 years; exit age up to 75 years. Entry and exit age increased to 85 years. Automatic continuation 21 Subscriber to intimate 15 days prior to 60 / superannuation for continuation (Govt) or deferment of annuity and/or lumpsum (Govt & Non-Govt). 15-day prior intimation requirement removed across sectors, hence subscribers can automatically continue under NPS. Specific Purpose Scheme 22 - * New regul....
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....ation enabling exit/withdrawal * provisions for 'specific purpose schemes' under NPS. * To be governed by Guidelines issued by the Authority for each such scheme. Financial assistance against pension corpus 23 Assignment or pledge of NPS benefits void except where permitted by NPS Trust. * Subscriber can seek financial assistance from a regulated financial institution and the lender may mark lien or charge on the individual pension account up to 25% of subscriber's own contribution (i.e. within partial withdrawal limits). * To be governed by Guidelines issued by the Authority. Frequency of Partial Withdrawal 24 During the tenure of subscription (i.e. before exit) → * Frequency: 3 times. * Interval n....
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....ot stipulated between two withdrawals i) Before 60 years age / superannuation (whichever is later): * Frequency: 4 times * Interval: 4 years between two withdrawals ii) Post 60 years age / superannuation (whichever is later): * Frequency: NA * Interval: 3 years between two withdrawals Purpose of Partial Withdrawal 25 Purchase or construction of a residential house permitted if subscriber does not already own a house (other than ancestral property). No change, but additionally clarified it as a one-time withdrawal. Treatment of specified illness limited to a comprehensive list of specified critical illnesses (for subscriber / spouse / children / parents). Broadened to medical treatment/hospitalization without a speci....
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....fied list (for subscriber/spouse/children/parents). Skill development, re-skilling, self-development activities (for subscriber). Removed Establishing a start-up or own venture (for subscriber). Removed New purpose New purpose added: Settlement of a financial obligation of the subscriber taken from a regulated financial institution against lien/charge on NPS account. V. NPS-Lite Normal Exit 26 Up to 60% lumpsum; At least 40% annuity Up to 60% lumpsum; At least 40% annuity; (Remains same) 27 For corpus ≤ Rs.1 lakh → 100% lumpsum a) Corpus ≤ Rs.2 lakh: 100% lumpsum (or) Up to 60% lumpsum & At least 40% annuity b) Corpus > Rs.2 lakh: Up to 60% lumpsum & At least 40% annuity Premature Exit ....
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.... 28 Up to 20% lumpsum; At least 80% annuity Up to 20% lumpsum; At least 80% annuity; (Remains same) 29 For corpus ≤ Rs.1 lakh → 100% lumpsum a) Corpus ≤ Rs.2 lakh: 100% lumpsum (or) Up to 20% lumpsum & At least 80% annuity b) Corpus > Rs.2 lakh: Up to 20% lumpsum & At least 80% annuity Exit due to Death 30 100% lumpsum permitted; Option for annuity, if desired. 100% lumpsum permitted; Option for annuity, if desired. (Remains same) Note 1: * Normal Exit → Exit upon, * Completing 15 years of subscription or 60 years of age (whichever is earlier) (All citizen model); * Superannuation / retirement (Government and Corporate Sector) * Vesting period → Period of subscription required to beco....
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....me eligible for Normal Exit * Premature Exit → Exit prior to completion of vesting period * Lock-in period → Period of subscription required to become eligible for Premature Exit * SLW → Systematic Lumpsum Withdrawal * SUR → Systematic Unit Withdrawal Note 2: The changes tabulated above are some of the broad key amendments (indicative but not exhaustive) effected in the Exit Regulations. For complete detailed changes, PFRDA (Exits and withdrawals under the NPS) (Amendment) Regulations, 2025 may be referred @ https://www.pfrda.org.in/<BR> News - Press release - PIB....