Partial withdrawal norms for NPS

The Pension Fund Regulatory and Development Authority (PFRDA) has liberalised partial withdrawal norms allowing the subscriber of the National Pension System (NPS) to withdraw a maximum of 25 per cent of own contribution at any time before the final exit from the NPS.

As per the guidelines issued by the PFRDA, a subscriber can make partial withdrawal for higher education or marriage of his or her children, including a legally adopted child. The subscriber can also make partial withdrawal for the purpose of purchase or construction of residential house or flat. However, no withdrawal can be made if the subscriber already owns either individually or jointly a residential house or flat, other than ancestral property. 

The subscriber can also make partial withdrawal for the treatment of specified illnesses of his legally-wedded spouse, children, including legally adopted child or dependent parents. The withdrawal could be made for any specified illnesses which require hospitalisation and treatment. The specified illnesses include diseases such as 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.

The subscriber would be eligible to make partial withdrawal only if he or she has been a subscriber of the NPS for a period of at least three years from the date of joining. The subscriber would be permitted to withdraw accumulations not exceeding 25% of the contributions made by him or her and standing to his or her credit in the pension account. Also, the subscriber would be allowed to withdraw for a maximum of three times during the entire tenure of subscription to the NPS.