Government Employees and Other NPS Subscribers Alert: Resubmit partial withdrawal form by January 31; Here’s why
If you had applied online for partial withdrawal of funds from your National Pension System (NPS) account and are yet to receive them, you need to submit your partial withdrawal request again. In case of partial withdrawal requests received online till 30 November 2018, the NPS trust is asking the subscribers to resubmit the completed partial withdrawal form and the documents again, and this time in physical form.
In the absence of submission of the hard copy form and documents to the nodal office, the online partial withdrawal request will remain pending in the system and if not authorised by Jan 31, 2019, your application will be treated as withdrawn. So, if you had applied online anytime before November 30, 2018, and would like to continue with the partial withdrawal request, it is better to resubmit the form and documents physically so that verification and authorisation can be completed by January 31, 2019.
Where to submit
One will have to submit the partial withdrawal form (601-PW) along with documents to POP, based on which POP can initiate online request. The form can be downloaded from here (https://npscra.nsdl.co.in/download/FORM%20-%20601%20PW.PDF).
In case of the government sector subscribers, the nodal office will be Pay& Accounts Office or the District Treasury Office or the Drawing and Disbursing Office, while for all others, it will be the Point of Presence (POP).
POPs are the first point of interaction of the NPS subscriber with the NPS architecture. The authorised branches of a POP, called Point of Presence Service Providers (POP-SPs), will act as collection points and extend a number of customer services to NPS subscribers including requests for withdrawal from NPS.
To reach out to your nearest POP-SP, visit (https://www.npscra.nsdl.co.in/pop-sp.php).
Conditions and documents for partial withdrawal
One can make partial withdrawal only for these following seven conditions:
1. Higher education of children: Documents required – Copy of admission letter of the institute along with fees schedule
2. Marriage of children: Documents required – Self declaration
3. For the purchase/construction of residential house: Documents required- Photocopy of the title documents of the property, approved plan and self declaration, or a loan offer letter from a housing finance company or a bank and self declaration.
4. For treatment of Critical illnesses: Documents required-Certificate from doctor.
5. To meet medical and incidental expenses arising out of the disability:Documents required- Disability certificate from a Government surgeon or Doctor (treating such disability or invalidation of subscriber) stating the nature and extent of disability and also certifying that subscriber need not be discharged from duty.
6.For Skill development: Documents required-
a) Admission/Sanctions letter from university in India/abroad with fee detail
b) For distance learning programs, copy of invoice which confirm the payment of required fee for desired course
c) For other skill development programmes, copy of invoices confirming payment of fee for the desired course
d) Study leave sanction letter/ NOC provided by the organisation/ department/ ministry, if required in terms of the employee’s service conditions (not applicable where employee-employer relationship does not exist)
7. For Establishment of own venture or any start-up: Documents required-
a) Registration Certificate of entity
b)Proof of ownership of the entity (it should be in the name of the subscriber)
c) Registration number issued by Government Authorities like GST/ Income Tax/Govt. Departments
Partial withdrawal rules
The Pension Fund Regulatory Development Authority (PFRDA) had earlier relaxed the norms for partial withdrawal under the National Pension Scheme (NPS). In accordance with the PFRDA (Exits and Withdrawals under the National Pension System) (First Amendment) Regulations 2017, the subscriber ought to be subscribed to the National Pension System, at least for a period of three years (earlier it was ten years) from the date of his or her joining, to be eligible to make partial withdrawals. The maximum withdrawal amount cannot exceed 25 per cent of the contributions made by the Subscriber and one may make partial withdrawals only three times during the entire tenure of subscription.
Although NPS is a retirement focused scheme, allowing partial withdrawals at the time of need makes it an investor friendly investment.