October 29, 2020

Latest Changes in the rules of National Pension Scheme

NPS i.e. National Pension System is a popular savings option in the country today. This rule was introduced for employees working in the private sector. This pension saving scheme provides financial facility to the person in future and also gives a monthly pension of Rs. 60,000 with the help of NPS. The government has changed the scheme.

Older pensioners of NPS who have left the scheme prematurely can rejoin in the scheme. The PFRDA has approved it. Under current rules, subscribers can opt out before completing 60 years. When investment matures in NPS, the investor has option to get 80% corpus as regular pension and the other 20% can be withdrawn altogether. If you want to rejoin NPS, you have to re-deposit. Apart from this they can complete the withdrawal pension process by taking regular pension. After this, they can open a new NPS account.

PFRDA has given these subscribers the option of giving them an opportunity at a minimum price for their rearrangement. The benefits of NPS include portability, flexibility, many easy means to make a contribution, pension fund option, scheme priority, benefits of exclusive tax.

Permanent retirement nnumber (PRAN) is given to the subscribers which is unique. Subscribers can have one PRAN active at a time. For this, he can close the existing NPS account and open another new account. Depending on the NPS, subscribers can choose the regulation option after getting premature exit or final exit or supernatural at the age of 60.

In case of premature exit, 20% of the pension corpus deposited in PRAN can be withdrawn together and the other 80% can be used to purchase an annuity plan from an annuity service provider notified by PFRDA.

Open a new NPS account with the new PRAN. If it is appropriate to connect to NPS, continue with the same PRAN in NPS. To do this, re-deposit the previously withdrawn amount into your NPS account (PRAN). The option of re-depositing to continue the existing PRAN can be availed once and the amount remains to be deposited together.

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