Great news for NPS account holders! PFRDA allows partial withdrawal for Covid-19 treatment

NPS account alert: Some great news for all National Pension System (NPS) accounts holders who may have been worried about not having enough money in case they need it in an emergency in times of coronavirus pandemic. The Pension Regulatory Authority of India (PFRDA) has allowed partial withdrawals for account holder to fulfill financial needs in the wake of Covid-19 crisis.

"In view of the decision of Government of India, which has declared COVID-19 as a pandemic, It has been decided to declare “COVID-19” as a critical illness which is life threatening in nature," a PFRDA release says. 

"Hence, in view of the above, the partial withdrawals shall be permitted to fulfil financial needs of the subscribers, if required to him/her against the request placed for partial withdrawals towards treatment of illness of subscriber, his legally wedded spouse, children, including a legally adopted child or dependent parents as mentioned in regulation 8(1)(A)(d) of the said regulations," the release further said.

Documents required to avail the facility

The Nodal Office/PoPs/Aggregators would ensure that the subscriber has provided the following document before authorising partial withdrawals:
-- Medical Certificate
-- Formal request for partial withdrawal.

NPS is a voluntary, defined contribution retirement savings scheme designed to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. NPS seeks to inculcate the habit of saving for retirement among the citizens.  It is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India. NPS is administered and regulated by PFRDA which is the regulator for the promotion and development of an organised pension system in the country.

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NPS scheme offers a range of investment options and choice of Pension Fund Manager (PFMs) for planning the growth of your investments. This gives individuals to see their money grow. Account holders have the option to switch over from one investment option to another or from one fund manager to another subject to certain regulatory restrictions.  The returns with NPS are completely linked to the market.