The NPS Lite Swavalamban Subscribers who are in the age group of 18-40 years were given option to migrate to Atal Pension Yojana launched by the government in May 2015 which provide minimum guaranteed pension to the subscribers.
NPS Lite Swavalamban subscribers who are above 40 years of age and thus cannot migrate to APY can continue in the Swavalamban scheme till they attain the age of 60 years. If they wish, they can also exit from the scheme.
As per the new rules, the Swavalamban Subscribers whose accumulated pension wealth do not exceed Rs 1 lakh and if they are not eligible to migrate to Atal Pension Yojana (APY), can opt to prematurely exit with lump sum payment.
Those eligible Subscribers are not required to continue in the Swavalmban scheme for minimum period of 25 years irrespective of the receipt of government co-contribution under Swavalamban by them.
However, there is a condition before one may exit by withdrawing entire corpus. If government’s co-contribution was availed by those eligible Subscribers then the same shall be deducted along with the returns generated from the corpus at the time of their exit.
The accumulated corpus of those Swavalamban Subscribers is to be calculated after deducting Government’s co-contribution, if any, and the returns thereon.
For example, a Swavalamban Subscriber who is aged 43 Years ( who could not be migrated to APY) has a corpus of Rs 1,04,000 in his Swavalamban PRAN and out of which, government’s co-contribution and returns constitute Rs 4500. The Subscriber shall be eligible for premature exit since the accumulated corpus in the PRAN would be Rs 99,500 ( Rs 104000-Rs 4500=Rs 99500).
Those Swavalamban Subscribers who fulfill the above criteria, and if they wish to prematurely exit, can submit their withdrawal claims to the associated POPs/Aggregators.
As per the notification issued recently, the accumulated pension wealth does not exceed Rs 1 lakh or a limit to be specified by the Authority, the whole pension wealth shall be paid without annuitisation to the subscribers who have not availed any Swavalamban co-contribution, and also to the subscribers who though have availed Swavalamban co-contribution but are not eligible for auto migration to Atal Pension Yojana, after deducting the Government’s co-contribution with returns thereon without requiring them to continue in the scheme for minimum period of 25 years.
The migration of a Swavalamban subscriber to any other pension scheme of Government of India, including Atal Pension Yojana, as approved by the Authority, shall not be deemed as an exit and withdrawal for the purposes of these regulations.