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April 10, 2020

NPS can be partial withdrawn for Treatment of COVID-19

by facelesscompliance in Compliance Law

Permission of Partial withdrawals of National Pension Scheme towards treatment of specified illnesses COVID-19 – PFRDA

The Pension Fund Regulator and Development Authority has allowd All Stakeholders and subscribers under National Pension System (NPS) to Partial withdrawals towards treatment of specified illness COVID-19 via Circular Circular No. PFRDA/2020/7/REG-EXIT/1. Date:09.04.2020

In continuation of the circular no. PFRDA/2018/47/Reg-Exit/4 dated 24.05.2018, issued on the applicability & handling of partial withdrawals, Authority is issuing this circular referring the terms of sub-regulation 8(1)(A)(d)(xv) of PFRDA(Exits and withdrawals under NPS) Regulations, 2015 and amendments thereunder, prescribes that-

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.


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 other terms and conditions as prescribed under regulation 8 of the PFRDA(Exits and withdrawals under NPS) Regulations, 2015 and amendments thereto shall continue to be applicable regarding defining of limits and frequencies.

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

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