NPS Exit (2024)

A. NPS Exit Reference Table
Government Sector	Premature Exit / Voluntary Retirement (Exit before 60 years/Superannuation)
	Complete (100%) Lump sum withdrawal allowed if the corpus is equal to or below ₹ 2.5 Lakh. If the corpus higher than ₹ 2.5 Lakh, at least 80% of the accumulated pension wealth has to be utilized for purchase of an Annuity providing for monthly pension to the Subscriber and the balance 20% is paid as lump sum to the Subscriber. Subscribers can opt and encouraged to continue in NPS under All Citizens Model post carrying out Inter Sector Shifting (ISS).
	Normal exit (60 years or beyond /Superannuation )
	Complete (100%) Lump sum withdrawal allowed if the corpus is equal to or below ₹ 5 Lakh. If the corpus is more than ₹ 5 Lakh, at least 40% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing for monthly pension to the Subscriber and the balance 60% is paid as lump sum to the Subscriber. In case of death after 60 years / superannuation) 60% lump sum will be paid to the nominees and 40% for default annuity by dependents.
	Unfortunate Death before normal exit / 60 years or Superannuation
	Complete (100%) withdrawal for corpus to nominees/legal heirs if the corpus is less than or equal to ₹ 5 Lakh. However, the nominees can opt for annuity if desired. If the corpus is higher than ₹ 5 Lakh, at least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of default Annuity by dependents and the balance 20% is paid as lump sum to the nominee/legal heir. If none of the dependent family members (spouse, mother & father) are alive, the Corpus i.e. 80 % has to be returned to the surviving children of the Subscriber and in the absence of children, to the legal heirs.
Non Government Sector	Premature Exit / Voluntary Retirement (Exit before 60 years/Superannuation)
	10 Years mandatory subscription. Complete (100%) Lump sum withdrawal if the corpus is equal or less than ₹ 2.5 Lakh. If the corpus more than ₹ 2.5 Lakh, at least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity and the balance 20% is paid as lump sum to the Subscriber.
	Normal exit (60 years or beyond /Superannuation )
	Complete (100%) Lump sum withdrawal is allowed if the corpus is less than or equal to ₹ 5 Lakh. If the corpus is more than ₹ 5 Lakh, at least 40% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity and the balance 60% is paid as lump sum. In case of death after 60 years / superannuation, lump sum is paid to the nominees. However, the nominees can opt for annuity if they desire so.
	Unfortunate Death before normal exit / 60 years or Superannuation
	The entire accumulated pension wealth of the Subscriber payable to the nominee or legal heirs if the Subscriber dies before or after attaining 60 years. However, the nominees can opt for annuity if they desire so.
Unfortunate death of NPS Subscriber post payment of the lump sum but annuity not issued.	Default annuity is to be bought by the dependents in the case of Govt sector. If none of the dependent family members (spouse, mother & father) are alive, the Corpus has to be returned to the surviving children of the Subscriber and in the absence of children, to the legal heirs. For Non-Govt sector, annuity as per the choice is to be availed by spouse/dependents. Complete (100%) lump sum withdrawal or annuity or lump sum withdrawal & annuity as per the choice is to be availed by spouse/dependents.
Subscribers who join NPS after 60 years	In case of Non Govt Sector Normal exit is allowed after completion of 3 years. The Subscriber will be required to utilize at least 40% of the corpus for purchase of annuity and the remaining amount can be withdrawn in lump sum. Complete (100%) withdrawal allowed as lump sum if the corpus is less than or equal to ₹ 5 Lakh. In case of exit before completion of 3 years, the Subscriber will have to utilize at-least 80% of the corpus for purchase of annuity and the remaining corpus can be withdrawn in lump sum. Complete (100%) withdrawal allowed as lump sum if the corpus is less than or equal to ₹ 2.5 Lakh. In case of unfortunate death of the Subscriber, the entire corpus will be paid to the nominee of the Subscriber as lump sum or nominee can opt for annuity. In case of Govt Sector In case of Govt Sector, the exit rules will be applicable as per the terms and condition of the employment.
Note :Default Annuity Scheme shall provide for Annuity for life of the Subscriber and his or her spouse (if any) with provision for return of purchase price of the Annuity and upon the demise of such Subscriber and spouse (if any), the Annuity be re-issued to the family members in the order specified here under at a premium rate prevalent at the time of purchase of such annuity by utilizing the purchase price required to be returned under the Annuity contract and all the family members in the order specified below are covered, Living dependent mother of the deceased Subscriber; Living dependent father of the deceased Subscriber After the coverage of all the family members specified above, the purchase price shall be returned to the surviving children of the Subscriber and in the absence of children, the legal heirs of the Subscriber, as may be applicable.

B. Exit & withdrawal due to disability and in-capacitation
Government sector Subscribers	If the employer certifies that the Subscriber has been discharged from the services of the concerned office on account of invalidation or disability, in such case, exit shall be handled as superannuation.
Non – Govt. sector Subscribers	lf Subscriber is physically incapacitated or has suffered a bodily disability leading to his incapability to continue NPS subject to the Subscriber submitting a disability certificate from a Government surgeon or Doctor (treating such disability or invalidation of Subscriber) stating the nature and extent of disability and also certifying that: the affected Subscriber shall not be in a position to perform his regular duties and there is a real possibility of the affected Subscriber, being not able to work for the remaining period of his life.; and Percentage of disability is more than 75 % in the opinion of such Government surgeon or doctor (treating such disability or invalidation of Subscriber).” It means such cases shall be handled similarly as exit cases at the age of superannuation or at the age of 60 years.

C. Option of Family Pension for Government sector Subscribers provided by the employer

If the Subscriber or the family members of the deceased Subscriber, upon his death, avails the option of additional relief on death or disability provided by the Government, the Subscriber has to transfer NPS corpus to the Nodal Office. The Subscriber or family members of the Subscriber availing such benefit shall specifically and unconditionally agree and undertake to transfer the entire accumulated pension wealth to the Government.

D. Deferment/Continuation under NPS
Non Government Sector	Continuation of NPS account
	Subscriber can opt to continue in NPS till 75 years of age and also deposit contributions to avail exclusive tax benefits. All the facilities and options of normal NPS account like access to CRA system, option to switch fund managers and assets class etc. provided. If Subscriber after attaining the age of 60 years/Superannuation has not initiated exit request or has not exercised the option of continuation under NPS, then Subscriber shall be automatically continued under NPS till he/she attains the age of 75 years, as if he/she has exercised the option of Continuation. In case of Corporate Subscribers, the Subscriber shall be automatically continued under NPS till he/she attains the age of 75 years, after 90 days of superannuation. Subscribers can exit from NPS and start pension anytime during the period of continuation.
	Deferment of Withdrawal
	Subscriber can defer his withdrawal with multiple options Defer only Lump sum withdrawal Defer only Annuity Defer both Subscriber can opt to defer the lump sum up to the 10 years. Annuity can be deferred for 3 years.
Government Sector	Continuation of NPS account
	Subscriber can opt to continue in NPS till 75 years of age and also deposit contributions to avail exclusive tax benefits. All the facilities and options of normal NPS account like access to CRA system, option to switch fund managers and assets class etc. provided. Subscribers can exit from NPS and start pension anytime during the period of continuation.
	Deferment of Withdrawal
	Subscriber can defer his withdrawal with multiple options Defer only Lump sum withdrawal Defer only Annuity Defer both Subscriber can opt to defer the lump sum up to the 10 years. Annuity can be deferred for 3 years.
Note : If the Subscriber has opted for deferment, Subscriber will not be able to contribute. However, if Subscriber has opted for continuation, he/she will be able to contribute in NPS. CRA Account maintenance charges need to be borne by the Subscribers post deferment/continuation, if the charges were borne by the employer earlier.

E. Allocation of corpus among lump sum & annuity at the time of exit
Types of Exit	Criteria for calculation of Lump sum/Annuity
Premature Exit / Voluntary Retirement / Normal Exit (60 years/Superannuation)	The corpus in the PRAN as on the date of initiation of withdrawal request shall be criteria for allocating the same for the lump sum or annuity and both as the case may be.
Death	The corpus lie in PRAN as on the date of death shall be criteria for allocating the same among the lump sum or annuity and both as the case may be.
Additional Information The percentage of the corpus mentioned in the table for buying annuity is minimum whereas for the lump sum is maximum. It means the entire corpus can be used for buying annuity whereas the lump sum component has the maximum cap as the case may be. Subscriber can buy Annuity from any one of the empanelled Annuity Service Providers (ASPs) by PFRDA. The list of ASPs empanelled and their contact details are available at https://npscra.nsdl.co.in/annuity-service-provider.php Subscriber can check the Annuity rates (pension amount) offered by different ASPs from the Annuity Calculator available on https://cra-nsdl.com/CRAOnline/aspQuote.html

As an expert in the field of National Pension System (NPS) and its various exit and withdrawal options, I bring forth a comprehensive understanding of the concepts outlined in the provided article. My expertise is grounded in a thorough knowledge of the NPS framework, its regulations, and the intricate details of exit and withdrawal scenarios for both government and non-government sectors.

A. NPS Exit Reference Table:

1. Government Sector:

a. Premature Exit / Voluntary Retirement (Exit before 60 years/Superannuation):

Lump sum withdrawal allowed if corpus ≤ ₹2.5 Lakh.
If corpus > ₹2.5 Lakh, 80% for annuity, 20% lump sum.
Option to continue in NPS under All Citizens Model post Inter Sector Shifting (ISS).

b. Normal Exit (60 years or beyond /Superannuation):
Lump sum withdrawal allowed if corpus ≤ ₹5 Lakh.
If corpus > ₹5 Lakh, 40% for annuity, 60% lump sum.
60% lump sum to nominees in case of death, 40% for default annuity.

c. Unfortunate Death before normal exit / 60 years or Superannuation:
Complete withdrawal if corpus ≤ ₹5 Lakh to nominees.
If corpus > ₹5 Lakh, 80% for default annuity, 20% lump sum.

2. Non-Government Sector:

a. Premature Exit / Voluntary Retirement (Exit before 60 years/Superannuation):

10 years mandatory subscription.
Lump sum withdrawal if corpus ≤ ₹2.5 Lakh.
If corpus > ₹2.5 Lakh, 80% for annuity, 20% lump sum.

b. Normal Exit (60 years or beyond /Superannuation):
Lump sum withdrawal if corpus ≤ ₹5 Lakh.
If corpus > ₹5 Lakh, 40% for annuity, 60% lump sum.
Lump sum to nominees in case of death; option for annuity.

c. Unfortunate Death before normal exit / 60 years or Superannuation:
Complete corpus to nominee/legal heirs.
If corpus > ₹5 Lakh, 80% for default annuity, 20% lump sum.

d. Unfortunate death post lump sum but annuity not issued:
Default annuity for government sector; choice for non-government sector.

e. Subscribers who join NPS after 60 years:
Non-Govt Sector: Normal exit after 3 years, 40% for annuity, complete withdrawal if corpus ≤ ₹5 Lakh.
Govt Sector: Exit as per employment terms.

B. Exit & Withdrawal due to Disability and Incapacitation:

1. Government Sector Subscribers:

Exit due to invalidation or disability treated as superannuation.

2. Non-Govt. Sector Subscribers:

Exit due to physical incapacitation or disability treated as superannuation.

C. Option of Family Pension for Government Sector Subscribers:

Transfer NPS corpus to Nodal Office if availing additional relief on death or disability provided by the Government.

D. Deferment/Continuation under NPS:

1. Non-Government Sector:

Continuation till 75 years, contributions allowed, exit anytime.
Deferment options for lump sum, annuity, or both.

2. Government Sector:

Similar continuation options as non-government sector.

E. Allocation of Corpus among Lump Sum & Annuity at the time of Exit:

Criteria based on corpus at the initiation of withdrawal request or at the date of death.

Additional Information:

Annuity options from empanelled Annuity Service Providers.
Annuity rates available through the Annuity Calculator.

The article provides a detailed roadmap for NPS subscribers, covering diverse scenarios from premature exits to unfortunate events, ensuring a comprehensive understanding of the system's nuances.