PFRDA – The Pension Fund Regulatory and Development Authority has allowed investors to partially withdraw money from their Tier-I NPS -National Pension System accounts to meet expenses related to treatment of coronavirus infection. Here are the FAQs for the same.
Q. Can I withdraw from Tier I NPS for COVID-19 Treatment?
A. Yes, as per recent amendment by PFRDA, now COVID- 19 has been considered as a critical illness which is life threatening in nature & Partial Withdrawal is allowed for its treatment.
Q. Can I withdraw money for treatment of my Family as well?
A. Yes, you can withdraw money for treatment of yourself, legally wedded spouse, children, including a legally adopted child or dependent parents.
Q. What documents shall be required?
A. Following 2 documents shall be required to be submitted:
a) A formal request for withdrawal
b) Medical Certificate
Q. What is the maximum amount that I can withdraw?
A. Amount not exceeding 25 per cent of the contributions made by the subscriber and excluding contributions made by employer.
Q. Is withdrawal allowed if a person has invested less than 3 years?
A. No. One can make partial withdrawal from NPS only after 3 years of the date of joining.
Q.How many times can I withdraw from my NPS Account?
A. The partial withdrawal can be made for a maximum of three times during the entire tenure of subscription.
Q. What are the other reasons for which withdrawal is permitted?
A. There are a list of reasons, some of the examples being:
a) Higher Education of Children
b) Marriage of Children
c) Purchase or Construction of Residential House(specified conditions)
d) Treatment of Specified Disease