PFRDA that is Pension Fund Regulatory and Development Authority has set the new NPS rules stating that the maximum age of joining pension has been increased to 65 that was 60 before. According to the media reports and sources, this decision regarding the new policy of pension has been implemented to help more and more people enjoy the pension coverage. As per the recent changes in the NPS, this is not the only change that has been announced but, it has also made the opening of the NPS account simpler.
New NPS Rules 2017
Prior to the recent changes, the age for joining the Pension scheme in India was 60 that has now been increased to 65 according to the new policy. As per the changes, any citizen of India, resident or non-resident between the age group of 60-65 can now apply for the pension coverage. According to the latest reports and reliable sources, the individuals applying for joining the NPS that is National Pension Scheme at age of 65 will enjoy the same privileges that are offered to the one that has joined the NPS at the age of 60.
In regards to the exit policy, the norms remain the same for the ones who join NPS at the age of 60. The exit norm states that anyone who joins NPS at the age of 60 can exit after completion of 3 years in NPS. Also, the norm states that all the subscribers are required to use at least 40% of the corpus for purchase of the annuity. The remaining of the amount can be withdrawn in lump-sum.
Annuity in NPS is the regular payments that a person will receive from the Annuity Service Provider after he exits the NPS. In case the subscriber needs to exit before the completion of the 3 year tenure, he/ she will have to use at least 80% of the corpus for the purchase of the annuity while the rest of the amount will be withdrawn in lump sum.
In the case of an unfortunate death of the subscriber during his/ her stay in the NPS, the corpus amount will go directly to the nominee that is provided by the subscriber at the time of joining NPS.
According to the new policies of NPS, the age limit for joining the NPS has increased to 65 with the motto of helping more and more people to enjoy the facility.
Source – NDTV