N P S Partial withdrawal-Guidelines


Government of India have introduced a new restructured defined contributory pension system, namely 'New Pension Scheme' for its employees (except Armed Forces) recruited on or after 01.01.2004 replacing existing system of defined pension scheme vide Notification F. No.5/7/2003-ECB&PR dated 22/12/20003 Department of Economic affairs, Ministry of Finance, Government of India. Accordingly, the scheme was made applicable to All India Service (AIS) officers recruited to Kerala Cadre on or after 01.01.2004. As per GO (P) No.20/2013/Fin dated 07.01.2013, State Government adopted National Pension System (NPS) and implemented for all appointments made on or after 01.04.2013.

The System is working on a defined contribution basis and has two tiers viz.,Tier- I and Tier - II. Contribution to Tier I is mandatory where as Tier II is optional and at the discretion of the employee. The employee shall make a contribution of 10% of his/her Basic Pay and Dearness Allowance to Tier I. The Government will also make a matching contribution. The entire amount including returns from investment will be kept in Tier I account. The pension funds of employees will be managed by Pension Fund Managers (PFMs) nominated by the Pension Fund Regulatory and Development Authority (PFRDA) and records will be maintained by National Securities Depository Limited (NSDL) that functions as the Central Record Keeping Agency (CRA). At exit, it would be mandatory for the employee to invest 40% of his/her pension wealth to purchase an annuity from Annuity Service Providers (ASPs) which will provide pension for life time of the employee.

The rules and regulations for the management of NPS implemented in the State will be governed by directions /rules /circulars / orders etc issued by Government of India/State Government/PFRDA/NSDL from time to time. In order to facilitate and monitor all the NPS related activities in the State, Additional Secretary (Pension) has been designated as State Nodal Officer (SNO). The Finance (NPS Cell) Department is the authority dealing with the subject of National Pension System in the State.
N P S  Partial withdrawal  Application
If you wish to withdraw your accumulated wealth in NPS before you turn 60 years old or upon reaching superannuation, you can make partial withdrawal from your NPS account without closing it.
Eligibility for Partial Withdrawal
You are eligible for making a partial withdrawal request only if you have been an NPS subscriber for at least 3 years (from the date of your joining the scheme).
Frequency and Limits of Partial Withdrawal
You can withdraw up to a maximum of 3 times during the entire tenure of your NPS account.
You can withdraw up to 25% of the contribution in NPS at any time, excluding those made by your employer, if any.
Also, you can withdraw only 25% of the contributions made by you between two partial withdrawals.
Circumstances for Partial Withdrawal
The purposes for which you can make a partial withdrawal request include:
Higher education for your children, including a legally adopted child
Marriage of your children, including those legally adopted
 Purchase or construction of a residential house or flat in your name or a joint name with your legally wedded spouse
Specified illnesses that involve hospitalization and treatment, either of yourself or your legally wedded spouse, your children (including those legally adopted), or dependent parents
Meeting your medical and incidental expenses arising out of a disability or incapacitation suffered
Meeting your expenses for skill development or re-skilling, or any other self-development activities, as permitted by PFRDA
Establishment of your venture or start-up, as permitted under PFRDA guidelines
There are 14 specific diseases covered for partial withdrawal, including other critical illnesses of a life-threatening nature as may be mentioned in the circulars, notifications or guidelines issued by PFRDA at different points in time. These include:
Primary pulmonary arterial hypertension
Kidney failure (end-stage renal failure)
Multiple sclerosis
Major organ transplant
Coronary artery bypass graft
Aorta graft surgery
Heart valve surgery
Myocardial infarction
Total blindness
Accident of a serious or life-threatening nature
Withdrawal Process
Submit the filled applications along with required documents with DDO covering letter in one copy to Treasury office.
Once the process is completed, the treasury will directly credit the amount to the concerned employee's account.
Necessary documents
1.Application Form- FORM 601 PW  
2.Self Declaration  Form
3.Pan card copy ( self attested)
4.Aadhar card copy  (self attested)
5.NPS Registration card  copy (self attested)
6.Bank account copy  (self attested)
Form National Pension System(NPS) Partial withdrawal-Application:Form 601PW
Form National Pension System(NPS) Partial withdrawal Self Declaration
Others National Pension System -Admission in spark

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