NPS-private sector: Entry age limit raised to 65 years

Pension regulator PFRDA has increased the maximum age of joining NPS-private sector to 65 years from 60 years at present.

With this move, any Indian citizen, resident or non-resident, of 60-65 years of age can also join National Pension System (NPS) and continue up to the age of 70 years.

This initiative will allow a larger segment of society, particularly senior citizens, to reap the benefits of NPS and plan for a regular income.

A subscriber joining NPS beyond the age of 60 years will have the same choice of pension fund as well as investment choice as is available under NPS for subscribers joining before the age of 60 years, an official release said.

The Pension Fund Regulatory and Development Authority (PFRDA) had, in the past few years, taken several measures to increase pension coverage in the country.

A subscriber joining NPS after the age of 60 years will now have an option of normal exit from NPS after completion of three years. In this case, the subscriber will be required to utilise at least 40 per cent of the corpus for purchase of annuity and the remaining amount can be withdrawn in lumpsum.

In case a subscriber is willing to exit from NPS before completion of three years in the pension scheme, he/she will be allowed to do so. But in such case, the subscriber will have to utilise at least 80 per cent of the corpus for purchase of annuity and the remaining can be withdrawn in lumpsum.

In case of death of a subscriber during his/her participation in NPS, the entire corpus will be paid to the nominee of the subscriber.

Srivats.kr@thehindu.co.in

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