NPS account: A continuation request must be made at least 15 days before turning 60, according to NSDLNPS or National Pension System is a government-sponsored pension scheme which offers the subscriber an option to set allocation to different asset classes.
After reaching 60 years of age, the subscriber can continue the account up to another 10 years, or apply to start a monthly pension, according to depository NSDL's website - nsdl.co.in.
In case the subscriber chooses to continue the NPS account beyond age 60, the contribution to is eligible for exclusive tax benefits, according to the NSDL portal.(National Pension System investment choices explained)1.
Continuation of NPS accountA National Pension System or NPS subscriber can carry forward the account beyond the age of 60 up to 70 years of age, according to the NSDL website.
In this option, the NPS subscriber continues to contribute to the account till the permitted age limit, and also continues to avail tax benefit.In order to exercise this option, eligible subscribers are required to initiate a continuation request online by accessing the Central Recordkeeping Agency (CRA) system (cra-nsdl.com) using his or her user ID (PRAN) and password.
The same can also be done in offline mode, by approaching the nodal office/PoP (point of presence) and submitting a physical request.The request should be submitted at least 15 days before attaining the age of 60 years, according to the NSDL.(Investment in these savings schemes fetches at least 8% interest)2.
Deferment (annuity and lump sum amount)The subscriber can choose to defer the annuity and/or lump sum.
The NPS subscriber gets three options to do this: defer only lump sum withdrawal, defer only annuity and defer both lump sum as well as annuity.The subscriber can withdraw either the deferred lump sum amount in up to ten annual installments up to age 70, or the entire amount once by initiating a withdrawal request anytime during the deferment period.The user can exercise this option by initiating a deferment request online by accessing the CRA system using his or her PRAN and password.
In this option as well, the user can even do the same in offline mode by approaching the nodal office/PoP and filing a physical request.3.
Start pensionThe subscriber can even choose to close the account.
That means in case the NPS subscriber does not wish to either continue or defer the account, he/she can exit from the pension scheme.
The request to exit the NPS can be initiated online, according to the NSDL website.
In this case, the person starts to receive the pension as per NPS exit guidelines.The subscriber can even choose to close the account.
That means in case the NPS subscriber does not wish to either continue or defer the account, he/she can exit from the pension scheme.
The request to exit the NPS can be initiated online, according to the NSDL website.
In this case, the person starts to receive the pension as per NPS exit guidelines.Eligible subscribers can opt for exit by logging in to the CRA system, and accessing the initiate withdrawal request option under the exit withdrawal request section, according to the NSDL website.The user is required to provide details such as choice of annuity service provider (ASP) and annuity scheme and submit the application.
After this, the user is required to print the system-generated form, complete and submit it at the respective Nodal Office along with KYC (know your customer) documents.In offline mode, a request can also be submitted by using a physical withdrawal form, and submitting it at the respective nodal office, according to the NSDL.For initiating a withdrawal request, the subscriber must ensure that his or her Aadhaar is linked with the National Pension System (NPS) account, according to the NSDL.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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