Rules, Rights & Rites -107
I usually post all important items related to official rulings, union news, and other general matters on my YouTube channels: Yourskayveeyes (English) and Anbudan Kayveeyes (Tamil).
However, due to the recent spate of orders and the high volume of information being received, I have not been able to convert every item into a video. Therefore, I am introducing these new slots to post current matters and updates that have not yet been published on YouTube. This ensures you stay informed on every detail, even if a video hasn't been made yet …………….Kayveeyes
PFRDA (Exits and Withdrawals under the NPS) (Amendment) Regulations, 2025,
• The Govt notified on December 16, 2025, represent a major shift toward greater liquidity and subscriber autonomy.
• The following is a consolidated, point-by-point summary of the key changes:
• Both Government and Non-Government subscribers can now stay invested in the NPS until 85 years of age (increased from 75).
• Subscribers can defer their lump-sum withdrawal and annuity purchase until age 85, allowing the corpus to remain invested and potentially grow further.
• For All Citizen and Corporate models, the mandatory annuity purchase is reduced to 20% (previously 40%).
• Non-government subscribers can now withdraw up to 80% of their corpus as a tax-free lump sum.
• The rules now provide tiered options based on the total accumulated pension wealth (APW) at exit:
• Corpus ≤ ₹8 Lakh: Full 100% lump-sum withdrawal is permitted for both sectors (the previous limit was ₹5 lakh for Govt and ₹2.5 lakh for Non-Govt).
• Corpus > ₹8 Lakh to ≤ ₹12 Lakh: * Subscribers can withdraw up to ₹6 lakh as a lump sum.
• The balance must be used for either an annuity or Systematic Unit Redemption (SUR) over a minimum of 6 years.
• Corpus > ₹12 Lakh:
o Government Sector: 60% Lump sum / 40% Mandatory Annuity.
o Non-Government Sector: 80% Lump sum / 20% Mandatory Annuity.
• Pre-Retirement (Before Age 60): Increased to 4 withdrawals (up from 3), with a mandatory 4-year gap between each.
• Post-Retirement (After Age 60): Subscribers continuing in NPS can make partial withdrawals every 3 years.
• A new provision allows for partial withdrawal to settle financial obligations (loans) specifically against a lien marked on the pension account.
• Upon filing an FIR and police report, nominees can receive 20% of the corpus as immediate relief.
• The remaining 80% is paid out once the subscriber is legally presumed dead under the Bharatiya Sakshya Adhiniyam, 2023.
• New Payout Method: Introduced as a phased withdrawal mechanism (similar to a Mutual Fund SWP).
• Volatility Management: Allows subscribers to redeem a fixed number of units periodically (monthly/quarterly) rather than a single lump sum, helping mitigate market risk.
• Regulation 5A: Subscribers who renounce or lose Indian citizenship are now permitted to close their NPS account immediately and withdraw 100% of their accumulated wealth.
• Death Benefits
• Non-Government Sector: 100% of the corpus is paid to the nominee as a lump sum; annuity purchase is entirely optional for the nominee.
• Government Sector: Full 100% lump sum is allowed if the corpus is ≤ ₹8 lakh. For higher amounts, default annuity rules apply for family members.
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