FAQs- NPS Withdrawals Central & State Govt. models Nodal Offices Sl. No. FAQs & Answers Karvy Computershare Pvt. Ltd. When can a subscriber withdraw from NPS? Is it possible to exit from NPS before attaining the age 1 of 60 or superannuation? Withdrawal from NPS can be: 1. On attaining the age of superannuation 2. On voluntary retirement or exit before attaining the age of superannuation or 60(Pre-mature exit) 3. On death of the subscriber 2 When can a subscriber exit/withdraw from NPS before attaining the age of superannuation or 60? 3 Pre-mature withdrawal is allowed: - For Central/State Government sector subscribers - on voluntary retirement or exit from service before superannuation - For All-Citizens model subscribers - at any time before the age of 60, provided the subscriber has subscribed to NPS for atleast 10 years - For Corporate model subscribers - on resignation, at any time before the age of 60, provided the subscriber has subscribed to NPS for atleast 10 years If a subscriber is eligible and applies for pre-mature withdrawal, what will happen if his/her age is less than the minimum age requirement for purchasing any approved annuity from an ASP? If the accumulated pension wealth of the subscriber is more than Rs. 1 lakh, but the age of the subscriber is less than the minimum age required for purchasing any annuity from any of the empanelled ASPs as chosen by the subscriber, such subscriber shall continue to remain in NPS, until he or she attains the age of eligibility for purchase of any annuity. 4 How can a subscriber make a request for withdrawal on superannuation or pre-mature withdrawal? 5 6 A subscriber can raise a request for withdrawal on superannuation (or on attaining the age of 60) or for withdrawal before superannuation (Pre-mature exit) in the following ways: 1. By submitting a request in physical form to the Nodal Office(DDO), with necessary enclosures 2. By raising an online request in the CRA website, using his/her I-PIN and submitting the autopopulated physical form to the Nodal Office. If a subscriber wishes to make a withdrawal request (W/d on Superannuation or Pre-Mature W/D), by submitting a physical form, what form should be used? Where can the Subscriber find the forms? To whom should the form be submitted? The subscriber should submit the W/D request forms (as given below) to his/her DDO: - Withdrawal on Superannuation - Form 101-GS - Pre-mature withdrawal (On voluntary retirement/exit before superannuation) - Form 102-GP The forms can be downloaded from the CRA website www.kcra.karvy.com What documents should be enclosed along with the withdrawal request for withdrawal on superannuation?
7 8 The following documents should be enclosed along with the request for withdrawal on Superannuation: 1. Proof of address 2. Proof of identity 3. Cancelled cheque /Bank Certificate /Copy of passbook with the subscriber photograph (KYC Certificate suffice for Bank proof in case of Govt. employees) 4. Advance Stamp Receipt 5. Request Cum Undertaking Form (If subscriber is having a corpus of less than Rs. 2 lakhs) What documents should be enclosed along with the withdrawal request for withdrawal before superannuation (Pre-mature exit)? The following documents should be enclosed along with the request for pre-mature withdrawal: 1. Proof of address 2. Proof of identity 3. Cancelled cheque /Bank Certificate /Copy of passbook with the subscriber photograph (KYC Certificate suffice for Bank proof in case of Govt. employees) 4. Advance Stamp Receipt 5. Request Cum Undertaking Form (If subscriber is having a corpus of less than Rs. 1 lakh) What documents should be enclosed along with the withdrawal request for withdrawal by nominee(s) on the death of a subscriber? The following documents should be enclosed by the nominees, along with the request for withdrawal on death of a subscriber: 1. Proof of address 2. Proof of identity 3. Cancelled cheque /Bank Certificate /Copy of passbook with the claimant photograph 4. Advance Stamp Receipt 5. Copy of Death Certificate 6. No Objection Certificate for family pension 7. Request Cum Undertaking Form (If subscriber is having a corpus of less than Rs. 2 lakhs) 8. Non-IRA compliance Certificate if subscriber is non IRA compliant Can a subscriber change his nominees at the time of withdrawal request for W/D on 9 superannuation or pre-mature W/D? The subscriber should specify the nomination details in the W/D request for W/D on superannuation or pre-mature W/D. He/she can nominate a maximum of 3 people. The nomination percentage shares between the nominees should add upto 100 and should not be in integers/fractional values. Where the subscriber wishes to nominate more than one person, he/she should enclose the nomination details in Annexure 401-AN. 10 What is claim ID? A claim ID needs to be generated in the CRA system, to enable raising/processing of withdrawal requests in the CRA system. For withdrawal on attaining the age of 60 or superannuation - a claim ID is generated by the CRA 6 months prior to the date of a subscriber's superannuation For pre-mature withdrawal or withdrawal by legal heirs on death of a subscriber - a claim ID is generated when the concerned Nodal Office (DDO/POP/POP-SP) raises a request for the same in the CRA system. A subscriber can raise an online request for withdrawal only after a claim ID is generated. In case of premature withdrawal, he/she has to contact the Nodal Office for generation of Claim ID, before raising an online request.
11 12 13 14 15 16 17 Where a subscriber wants to withdraw on attaining the age of 60 or superannuation, can he/she make a withdrawal request in advance? A subscriber who wishes to withdraw on attaining the age of 60 or superannuation can make a withdrawal request at any time after the generation of Claim ID, upto 6 months before the superannuation date. However, the Withdrawal request will be processed only after completion of Superannuation age/ Date of Retirement (as per the CRA records). In case a subscriber is withdrawing from NPS on attaining the age of 60 or superannuation, how should his employer settle his last 3 contributions? Contributions deductions under the NPS made by the employers from the salary of such subscriber shall be stopped at least three months prior to the date of superannuation, as may be applicable, to ensure that the exit and withdrawal of the subscriber is smooth and effective. The employer shall settle directly the said last three months contributions at their end with the concerned employee. Can a subscriber withdraw the entire accumulated wealth as lump-sum, for withdrawal on superannuation or pre-mature withdrawal? Withdrawal on superannuation (or on attaining the age of 60): The Subscriber can withdraw a maximum of 60% of the pension wealth as lump-sum and is required to transfer a minimum of 40% of the pension wealth to Annuity. Where the accumulated pension wealth is less than Rs.2 lakhs, the entire amount can be withdrawn as lump-sum. Withdrawal before superannuation (Pre-mature exit) - The Subscriber can withdraw a maximum of 20% of the pension wealth as lump-sum and is required to transfer a minimum of 80% of the pension wealth to Annuity. The subscriber should mention the allocation percentages for the amount to be withdrawn as Lump-sum and the amount to be used to purchase life annuity, in the withdrawal request. Where the accumulated pension wealth is less than Rs.1 lakh, the entire amount can be withdrawn as lump-sum. When can a subscriber withdrawing on attaining the age of 60 or superannuation, withdraw the entire pension wealth as lump-sum and not purchase any annuity? Where the accumulated pension wealth in the Permanent Retirement Account of the subscriber is equal to or less than Rs.2 lakhs, the subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing annuity (and hence shall not receive any pension). When can a subscriber withdrawing on pre-mature exit, withdraw the entire pension wealth as lump-sum and not purchase any annuity? Where the accumulated pension wealth in the Permanent Retirement Account of the subscriber is equal to or less than Rs.1 lakh, the subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing annuity (and hence shall not receive any pension). Who should make a withdrawal request in case of a subscriber's death? What will happen if there is more than one nominee? In the event of a subscriber's death, all the registered nominees or Legal heirs should jointly submit the withdrawal request. In the event of a subscriber's death, how will the subscriber's accumulated pension wealth be paid out to the nominees - i.e., as lumpsum or in annuities? Can the nominees receive the entire pension wealth as lump-sum?
18 In the event of a subscriber's death, the entire accumulated pension wealth will be paid to the nominees/legal heirs as lump-sum. On the death of the subscriber, how should the nominees/legal heirs make a withdrawal request? What form should be used? To whom should the form be submitted? Can a W/D request be made online? In the event of a subscriber's death, all the registered nominees or legal heirs (including the guardian(s) of any minor nominee(s)) should jointly submit the withdrawal request in Form 103-GD, to the subscriber's DDO. The form can be downloaded from the CRA website www.cra.karvy.co.in. Online submission of withdrawal request cannot be done by the nominee(s)/legal heir(s) in the event of withdrawal on death of a subscriber. Will the Nodal Office (DDO/POP/POP-SP) get an acknowledgement from the CRA, on forwarding of 19 physical requests for withdrawal to the CRA? Yes. 20 Can a subscriber make an online request for withdrawal? Yes, the subscriber has the option to make an online request for withdrawal from the CRA website, using his/her I-PIN. This option is not available to the nominees/legal heirs, for withdrawal on death of a subscriber. After submission of an online request, the subscriber should print the autopopulated form, paste his/her photograph, attest the photo, sign the form and get witness signatures and submit the form with the enclosures (as selected while filling the form) to his/her Nodal Office. A claim ID must have been generated in the CRA system, before the subscriber can make an online request. The subscriber should contact his/her Nodal office for generation of claim ID, in case the same has not been generated already (eg. in case of pre-mature withdrawal). 21 What is the role of the Nodal Office (DDO/POP/POP-SP) in online submission of W/D request, if the subscriber/nominees have submitted a physical withdrawal request to them? 22 23 Where a subscriber (or his nominees-on his/her death) has submitted a physical Withdrawal request, the Nodal Office (DDO/POP/POP-SP) should: 1. Verify the withdrawal request and KYC documents/other enclosures 2. Initiate Withdrawal request in the CRA system (using "Maker" ID) 3. Authorise the Withdrawal request in the CRA system (using "Checker" ID) and 4. Send the withdrawal docket with a covering letter to the CRA, for storage purposes only. What is the role of the Nodal Office (DDO/POP/POP-SP) in online submission of W/D request, if the subscriber has submitted an online withdrawal request? Where a subscriber has submitted an online Withdrawal request, the Nodal Office (DDO/POP/POP- SP) should: 1. Verify the withdrawal request and KYC documents/other enclosures received from the subscriber after the online request 2. Verify the withdrawal request captured by the Subscriber in the CRA system (using "Maker" ID) 3. Authorise the Withdrawal request in the CRA system (using "Checker" ID) and 4. Send the withdrawal docket with a covering letter to the CRA, for storage purposes only. Can a subscriber who is withdrawing from NPS on attaining the age of superannuation, choose the Annuity contract that he wishes to purchase?
24 Karvy Computershare Pvt. Ltd. For Government sector subscribers, the default annuity contract provides for: a. Annuity for the life of the subscriber or spouse (if any) - (with provision for return of purchase price); b. On demise of the subscriber, return of purchase price of the annuity - to be used for purchase of annuity (at a premium rate prevailing at the time of such purchase) for other family members in the order of: i. living dependent mother of the deceased subscriber and ii. living dependent father of the deceased subscriber - until all are covered. Thereafter, the purchase price to be returned to the surviving children or legal heirs of the subscriber. A Subscriber who is withdrawing on attaining superannuation, who wishes to opt out of the default option and choose a different annuity contract, shall be required to specifically opt for such option. Can a subscriber who is withdrawing from NPS before attaining the age of superannuation (premature exit), choose the Annuity contract that he wishes to purchase? For Government sector subscribers who wish to withdraw before attaining the age of superannuation, the default annuity contract applies, which provides for: a. Annuity for the life of the subscriber or spouse (if any) - (with provision for return of purchase price); b. On demise of the subscriber, return of purchase price of the annuity - to be used for purchase of annuity (at a premium rate prevailing at the time of such purchase) for other family members in the order of: i. living dependent mother of the deceased subscriber and ii. living dependent father of the deceased subscriber - until all are covered. Thereafter, the purchase price to be returned to the surviving children or legal heirs of the subscriber. 25 When can a subscriber opt for deferment of Withdrawal? a. A Subscriber exiting NPS on account of Superannuation can opt for deferring the Withdrawal of his/her lump sum share (maximum 60%) until he/she attains the age of 70 years. b. In such cases, the subscriber should intimate his or her intention to do so in writing in the specified form at least fifteen days before the attainment of age of superannuation and agree to bear the transaction/maintenance charges levied by all the NPS intermediaries (CRA, TB etc.) for maintaining the PR Account. 26 Can a subscriber who has attained the age of 60 or superannuation, defer purchasing the annuity? Subscribers exiting NPS on account of Superannuation can defer the purchase of Annuity for a maximum period of 3 years (minimum 40% is to be invested with ASP for purchase of Annuity) In such cases, the subscriber should intimate his or her intention to do so in writing in the specified form at least fifteen days before the attainment of age of superannuation and agree to bear the transaction/maintenance charges levied by all the NPS intermediaries (CRA, TB etc.) for maintaining the PR Account. 27 When is the option of deferring the purchase of annuity not available to a subscriber? A subscriber will not have the option of deferring the purchase of annuity: - In case of pre-mature withdrawal or - In case of withdrawal on attaining the age of 60 or superannuation, if he/she does not intimate his or her intention to do so in writing in the specified form at least fifteen days before the attainment of age of superannuation to the NPS Trust or CRA
28 What will happen in the event of death of a subscriber who has deferred the purchase of annuity? In case a subscriber opts for deferment of purchase of Annuity, in case the death of the subscriber occurs before such due date of purchase of an annuity after the deferment, the annuity shall mandatorily be purchased by the spouse (if any) providing for: i. Annuity for the life of the spouse; ii. On demise of the spouse, return of purchase price of the annuity - to be used for purchase of annuity (at a premium rate prevailing at the time of such purchase) for other family members in the order of: 1. living dependent mother of the deceased subscriber and 2. living dependent father of the deceased subscriber. (until all are covered) Thereafter, the purchase price to be returned to the surviving children or legal heirs of the subscriber. Can a subscriber partially withdraw from his NPS account, while continuing to maintain and 29 contribute to the account? Partial withdrawal of upto 25% of the subscriber s contribution (not Employer s contribution) is allowed under certain specific circumstances (eg. Purchase of house, higher education of children etc.) as per the PFRDA regulations, provided the subscriber has been in the National Pension System for atleast 10 years. Such withdrawal is allowed only for a maximum of 3 times during the entire tenure of subscription under the NPS. Not less than a period of five years should have elapsed from the last date of each of such withdrawal. 30 What happens to the balance in a subscriber's Tier II account, on withdrawal from Tier I account? Tier-II account shall stand automatically closed at the time of exit of the subscriber from the National Pension System, even if an application so specified for the purpose has not been received from the subscriber, and 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. When and how can a subscriber withdraw from his Tier II account, without withdrawing from Tier I 31 account? A subscriber having a valid and active Tier-II account of the Permanent Retirement Account can withdraw the accumulated wealth either in full or part, at any time. The subscriber should submit a duly filled Form UOS 12 to his POP-SP for doing so. There is no limit on such withdrawals as long as the account has sufficient amount of accumulated pension wealth to take care of the applicable charges and the withdrawal amount. The form can be downloaded from the CRA website www.kcra.karvy.com 32 Can a subscriber check the status of his/her withdrawal request? The subscriber will receive SMS/Email alerts: - at the time of generation of claim ID - at the time of acceptance of request - on closure, intimation of funds transferred to the subscriber's bank account/asp. The subscriber and the Nodal Office (DDO/POP/POP-SP) can check the withdrawal status at any time, from the CRA Website www.kcra.karvy.com 33 What are the documents that can be submitted as proof of address/identity?
The list of documents that can be submitted as proof of address and proof of identity, is provided in the application form for withdrawal. 34 What are some of the reasons why a withdrawal request could be rejected? Some reasons why a withdrawal request could be rejected are: 1. Original PRAN card OR Affidavit in case of non-submission of PRAN card not submitted along with the Withdrawal form. 2. KYC documents (Photo-ID Proof and Address Proof) not attested by POP/POP-SP. 3. Name provided in the Withdrawal form is different from the name provided in the KYC documents (Photo ID and address proof). 4. Address mentioned in the Withdrawal form is different from the Address Proof provided. 5. Date of Retirement mentioned on the Withdrawal form does not match with date mentioned on the POP/POP-SP covering letter. Hence, POP/POP-SP confirmation is required for correct Date of Retirement. 6. Withdrawal fund allocation percentage not provided in the Withdrawal form. 7. Nomination details/witness (to nomination) details not provided in the Nomination form. 8. Photograph is not self-attested by the subscriber/claimant. 9. In case of death, Withdrawal request is not submitted by the registered nominee as per the CRA system. 35 Who will store the physical records for withdrawal requests? The Nodal Office (DDO/POP/POP-SP) will create online withdrawal request and send the physical withdrawal docket to the CRA, for storage purposes only. 36 What is the role of CRA in processing withdrawal requests?
The CRA will: 1. Receive the withdrawal request (online) 2. Process the W/D request as per PFRDA regulations 3. Send instructions to the PFMs for transfer of funds to the Trustee Bank (TB); 4. Send instructions to the TB for transfer of the lump-sum withdrawal amount to the subscriber's bank account and 5. Send instructions to the TB to transfer the amount to be annuitized, to the ASP. 6. Update the status of the withdrawal request in the CRA system, which can be checked by the subscriber/nodal Office from the CRA website 7. Send email/sms alerts on generation of claim ID, acceptance of request, rejection, successful processing etc. 3,4 and 5 will be a part of the daily settlement process run by the CRA. 37 How much time does it normally take, for a withdrawal request to be processed? The lumpsum amount will be transferred to the Subscriber's bank account on the 4th working day after the Nodal Office authorizes the withdrawal request in the CRA system. The amount to be annuitized will also be transferred to the ASP at that time.