INSUBCONTINENT EXCLUSIVE:
The government allows partial withdrawal from mandatory Tier-I account after three years from date of joining, with effect from August 10,
Previously, Tier-1 account holder had to wait for 10 years from date of joining to be eligible for partial withdrawal facility.2
National Pension System: Tier 1 and Tier 2
While Tier I NPS account is a pension account, Tier II NPS account is a savings account.4
financial needs of subscribers", minister noted.5
With effect from August 10, 2017, government has also removed requirement of maintaining a mandatory gap of five years between two partial
This means that partial withdrawals up to 25 per cent from NPS Tier-1 account need not be at a gap of five years.The government in December
last year raised its contribution towards National Pension System (NPS) accounts to 14 per cent from 10 per cent
Contributions by subscriber, however, were capped at 10 per cent of basic salary.National Pension System, a government-sponsored pension
scheme, was initially launched for government employees in January 2004
In 2009, NPS was opened to all sections.
