Soon NPS Systematic Lump Sum Withdrawal (SLW) will be a reality. What is this NPS NPS Systematic Lump Sum Withdrawal (SLW), is it tax-free, and how one can avail of this facility?
National Pension System (NPS) Withdrawal Options 2023
There are currently FIVE withdrawal options available for NPS subscribers.
a) Premature Exit / Voluntary Retirement (Exit before 60 Years or Superannuation)
# Government Sector
- Complete (100%) Lump sum withdrawal is allowed if the corpus is equal to or below Rs.2.5 Lakh.
- If the corpus is higher than Rs.2.5 Lakh, at least 80% of the accumulated pension wealth has to be utilized for the purchase of an Annuity providing for monthly pension to the Subscriber, and the balance 20% is paid as a lump sum to the Subscriber.
- Subscribers can opt and are encouraged to continue in NPS under the All Citizens Model post carrying out Inter Sector Shifting (ISS).
# Non-Government Sector
- 5 Years mandatory subscription.
- Complete…