NPS Exit Rules: 5 Things To Know

Outlook Money

Premature Exit

Benefits at exit include annuitisation, where 80 per cent of the accumulated fund is used for monthly pension, and the remaining part is paid to the subscriber in a lump sum.

Upon Subscriber’s Death

Upon the subscriber’s death after superannuation, 20 per cent of the accumulated corpus will be paid to the nominee or the legal heir in a lump sum, and the remaining 80 per cent will be annuitised for monthly pensions. 

Disability

Subscribers get the same benefits for disability, invalidation or incapacity, as the benefits at superannuation or legal retirement age.

Lumpsum Withdrawals

After the subscriber's death, if the accumulated amount is less than 5 lakh and for premature exit, if the amount is less than 2 lakh, it can be withdrawn as whole.

Employer's pension

Disability or incapacitation, qualifies employer to acquire the NPS fund of the subscriber if the subscriber chooses to opt for the employer pension.

Compiled By Himani Verma

Read More

Read More