New Delhi, May 3 (IANS) The Pension Fund Regulatory and Development Authority (PFRDA) on Thursday said that it has made modification in partial withdrawal rules under the National Pension System (NPS).
According to PFRDA, partial withdrawals will now be allowed to NPS subscribers who wish to improve “their employability or acquire new skills by pursuing higher education or acquiring professional and technical qualifications”.
“Further, individual NPS subscribers who wish to set up a new business or acquire new business will also be allowed to make partial withdrawals from his contributions. Other terms applicable to partial withdrawals will remain unchanged,” PFRDA said in a statement on Thursday.
PFRDA took the decision in its recently-held Board meeting.
Besides, the pension regulator has increased cap on equity investment in “active choice to 75 per cent from current 50 per cent for private sector subscribers”.
Presently, there is a cap of 50 per cent on equity investment under active choice in NPS.
“The proposal on increasing cap on equity investment in active choice to 75 per cent from currently 50 per cent has been approved by the Board. However, it comes with a clause of tapering of the equity allocation after the age of 50 years,” the statement said.