Join My whatsapp GroupNational Pension System - Contributory Pension Scheme - Enabling NPS Subscribers to continue PRAN in case of premature exit - Instructions
National Pension System - Contributory Pension Scheme - Enabling NPS Subscribers to continue PRAN in case of premature exit - Instructions issued
Attention of all the Deputy Directors of District Treasuries in the state is invited to the subject and reference cited above. As you are aware that under NPS, the subscribers are allotted a Permanent Retirement Account Number (PRAN), which is unique, and the subscriber can have one active PRAN at any given point of time.
As per the scheme guidelines, a subscriber can opt for premature exit or final exit at an age of 60 years or on attaining superannuation or any time later as per procedures. And, in case of premature exit, upto 20% of the accumulated pension corpus in the PRAN Account can be withdrawn as lump sum and balance 80% or more has to be utilised to buy an annuity plan from the annuity service providers (ASPs) empanelled by PFRDA.
Also, the PFRDA have noticed certain instances, where the subscribers, including employees from Government sector also, who have applied premature exit and withdrawn the lump sum upto 20% from their PRAN account, but have not yet bought any annuity plan where their 80% or more corpus meant for annuity remains still in their PRAN Account.
The guidelines issued by the PFRDA in its Circular no.: PFRDA/2020/41/SUP• ASP/1, Dated 23/09/2020 in above said cases are explained accordingly:
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