The NPS Lite Swavalamban Subscribers who are within the age bracket of 18-40 years got the choice to migrate to Atal Pension Yojana launched by the govt in May 2015 which provides a minimum guaranteed pension to the subscribers.
NPS Lite Swavalamban subscribers who are above 40 years aged and thus cannot migrate to APY can continue within the Swavalamban scheme till they attain the age of 60 years. If they want, they will also exit from the scheme.
As per the new rules, the Swavalamban Subscribers whose accumulated pension wealth doesn’t exceed Rs 1 lakh and if they’re not eligible to migrate to Atal Pension Yojana (APY), can prefer to prematurely exit with a lump-sum payment. Those qualified Subscribers are not required to continue inside the Swavalmban scheme for a minimum period of 25 years irrespective of the receiving of state co-contribution under Swavalamban by them. However, there’s a condition before one may exit by withdrawing the whole corpus.
If the government’s co-contribution was availed by those eligible Subscribers then an equivalent shall be deducted alongside the returns generated from the corpus at the time of their exit.
The accumulated corpus of these Swavalamban Subscribers is to be calculated after deducting Government’s co-contribution if any, and therefore the returns thereon. For example, a Swavalamban Subscriber who is aged 43 Years ( who couldn’t be migrated to APY) features a corpus of Rs 1,04,000 in his Swavalamban PRAN and out of which, government’s co-contribution and returns constitute Rs 4500.
The Subscriber shall be eligible for the premature exit since the accumulated corpus within the PRAN would be Rs 99,500 ( Rs 104000-Rs 4500=Rs 99500). Those Swavalamban Subscribers who fulfill the above criteria, and if they want to prematurely exit, can submit their withdrawal claims to the associated POPs/Aggregators.
As per the notification delivered lately, the accrued pension wealth does not exceed Rs 1 lakh or a limit to be stated by the Authority and the entire pension wealth shall be paid without annuitization to the subscribers who have not availed any Swavalamban co-contribution and also to the subscribers who though have availed Swavalamban co-contribution but aren’t eligible for auto migration to Atal Pension Yojana after deducting the Government’s co-contribution with returns thereon without requiring them to continue within the scheme for a minimum period of 25 years.
The migration of a Swavalamban subscriber to the other pension scheme of the govt of India, including Atal Pension Yojana, as approved by the Authority, shall not be deemed as an exit and withdrawal for the needs of those regulations.
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