The Pension Fund Regulatory and Development Authority (PFRDA) has proposed changes to exits and withdrawals under the National Pension System (NPS). NPS is a government-backed pension scheme in which you can accumulate a retirement corpus. The scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA). 

The changes in NPS rules suggested by PFRDA are as follows:
- To increase the entry-exit age limit, automatic continuation.
- Subscribers who are 60+ will get an easy exit option.
- to revise partial withdrawal rules.
- Loan-like facility proposed on NPS Accounts.
- New exit rules for NPS-Vatsalya and the non-government sector

The department has asked for suggestions, and the last date for submitting is October 17.

Add Zee Business as a Preferred Source

NPS to UPS

On Tuesday, September 16, PFRDA issued an advisory on extending the time for a one-time option for Central Government employees (who joined services between April 1, 2025, and August 31, 2025) to opt for the Unified Pension Scheme (UPS).

"In light of the recent clarifications and developments in the scheme, the Central Government has now decided to extend a one-time option to Central Government employees who joined services on or after April 1, 2025, and up to August 31, 2025, and who have opted for the National Pension System, to migrate to the Unified Pension Scheme."

This option may be exercised on or before September 30, 2025, in alignment with the cut-off date already prescribed for other eligible categories under UPS.

This initiative aims to provide informed choice to Central Government employees in planning their post-retirement financial security. By opting for UPS, the employees retain their choice for switch to NPS at a later date.

How does NPS work?

In NPS, when you are 60, you are allowed to withdraw part of your investment, and the remaining amount can be used to buy an annuity for a regular pension. It is available to all citizens and allows you to allocate how much of your money to equities (stocks) based on your risk tolerance and age. This flexibility might influence your long-term results.