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PFRDA proposes key changes to NPS exit, withdrawal rules
Business Standard
|September 18, 2025
The Pension Fund Regulatory and Development Authority (PFRDA) has proposed amendments on exits and withdrawals under the National Pension System (NPS), including extending the time-frame for the onetime, one-way switch from Unified Pension Scheme (UPS) to NPS.
The PFRDA issued the exposure draft on Tuesday with key proposals being redefining the term “exit” to cover multiple scenarios, including under NPS Vatsalya and new non-government sector pension fund schemes; stipulating exit provisions for non-government sector schemes; increasing the age limit for entry and exit with automatic continuation; and removing the requirement for prior intimation in case of deferment of lump sum or annuity.
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