MONEY
PFRDA’s draft norms may leave non-govt NPS subscribers with more pension in hand
- IBJ Bureau
- Sep 19, 2025
The pension regulator has proposed to increase lump-sum payout to non-government sector subscribers of the National Pension System (NPS) to 80 per cent and reduce annuitisation to 20 per cent of their corpus at the time of exit from the scheme.
In its proposed amendments to the norms, the Pension Fund Regulatory and Development Authority (PFRDA) has also proposed that private sector subscribers can also exit from NPS schemes after 15 years of investing.
According to extant norms, a private sector subscriber can withdraw a maximum of 60 per cent of the corpus as a lump sum after attaining 60 years of age, while the remaining 40 per cent has to be annuitised for a regular monthly pension.
The draft norms have also proposed to increase the age limit for entry into the NPS from up to 70 to 75 years and exit from NPS from 75 to 85 years. Subscribers can also withdraw as many as six times from three times currently during the vesting period to meet their liquidity requirements. It has also proposed an enabling provision for subscribers to seek financial assistance from regulated financial institutions against their individual pension account.
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