PFRDA allows 80% NPS corpus withdrawal for pvt subscribers

IN A MAJOR reform of the national pension system (NPS), the pension regulator has allowed lump sum payout to non-government sector subscribers to 80% and reduced annuitisation to 20% of their corpus at the time of exit from the scheme.

- FE BUREAU

Under the PFRDA (Exits and Withdrawals under NPS) Amendment Regulations, 2025, the regulations no longer prescribe a standalone "5-year lock-in" for private subscribers.

Instead, exits are now governed by eligibility conditions and annuitisation requirements, not a fixed lock-in clock.

In premature exit before eligibility, at least 80% of the corpus must be annuitised; only 20% can be withdrawn as lump sum. If the corpus is ₹5 lakh or less, 100% withdrawal is permitted.