Pension Fund Regulatory and Development Authority (PFRDA) reduces mandatory annuity purchase to 20% for non-government NPS subscribers.

Key facts

• Non-government subscribers under All Citizen Model and Corporate NPS can now withdraw up to 80% of corpus as lump sum.
• Mandatory annuity purchase requirement reduced from 40% to 20% of accumulated pension wealth.
• For corpus up to ₹8 lakh, entire amount can be withdrawn as lump sum with annuity purchase optional up to 20%.
• For corpus between ₹8 lakh and ₹12 lakh, lump sum withdrawal capped at ₹6 lakh with balance available for annuity or systematic unit withdrawal over six years.
• For corpus above ₹12 lakh, minimum 20% must be used for annuity purchase while up to 80% can be withdrawn as lump sum.