The NPS Lite Swavalamban Subscribers who are in the age group of 18-40 years have been provided choice to migrate to Atal Pension Yojana launched by the government in May 2015 which provide minimum assured pension to the subscribers.
NPS Lite Swavalamban subscribers who are above 40 years of age and as a result can not migrate to APY can continue in the Swavalamban scheme till they attain the age of 60 years. If they want, they can also exit from the scheme.
As per the new guidelines, 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 necessary to continue in the Swavalmban scheme for minimum period of 25 years irrespective of the receipt of government co-contribution beneath Swavalamban by them.
However, there is a situation ahead of one could exit by withdrawing complete corpus. If government’s co-contribution was availed by these eligible Subscribers then the very same shall be deducted along with the returns generated from the corpus at the time of their exit.
The accumulated corpus of these Swavalamban Subscribers is to be calculated just after deducting Government’s co-contribution, if any, and the returns thereon.
For instance, 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 considering the fact that 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 want to prematurely exit, can submit their withdrawal claims to the linked POPs/Aggregators.
As per the notification issued not too long ago, the accumulated pension wealth does not exceed Rs 1 lakh or a limit to be specified by the Authority, the complete pension wealth shall be paid devoid of annuitisation to the subscribers who have not availed any Swavalamban co-contribution, and also to the subscribers who even though have availed Swavalamban co-contribution but are not eligible for auto migration to Atal Pension Yojana, just after deducting the Government’s co-contribution with returns thereon devoid of 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, such as Atal Pension Yojana, as authorized by the Authority, shall not be deemed as an exit and withdrawal for the purposes of these regulations.