The Pension Fund Regulatory and Development Authority (PFRDA) approves the appointment of individuals working as agents or business correspondents amidst their existing business structure to assist the distribution of pension schemes. This is being done to broaden the National Pension System (NPS) base.
The age limit for entering into NPS has also been increased from 65 to 70, and the exit age has been changed to 75; previously, it was 70 years. This will apply to all citizen and corporate models. The pension regulator also permits individuals to sell their NPS products to broaden their retirement plan coverage.
As per the PFRDA notification, an NPS subscriber with a corpus of up to Rs 5 lakh can withdraw the total amount upon superannuation/exit. An NPS subscriber can withdraw the total accrued pension wealth without buying an annuity. Upon using this option, a subscriber will not receive any pension or any other amount under the National Pension System or the employer or government.
The full withdrawal option will benefit those government and private sector subscribers who have enrolled on NPS late in their lives.