Utilisation of Accumulated Pension Wealth on exit from the National Pension System for Corporates

As per the rules regarding exit of government employees from the National Pension System (NPS) before the age of normal superannuation, at least 80% of the accumulated pension wealth of the subscriber needs to be utilised for purchase of annuity providing for monthly pension to the subscriber and the balance is to be paid as a lump-sum payment to the subscriber. A subscriber at the time of exit from NPS can lodge his claim through his/her nodal office at NPS Claims Processing Cell (NPSCPC) at Central Recordkeeping Agency (CRA).  

            The Pension Fund Regulatory and Development Authority (PFRDA) settle the claims of the subscribers who have lodged their claims along with complete set of documents with NPS Claims Processing Cell through the CRA 

            The details of the NPS account settled in Government Sector are: 

Sector	No. of PRANs	Total amount disbursed (Rs.)
Central Government	431	27,890,438.19
State Government	46	3,748,157.53

All contributions received from Government and employees are accounted for and invested once they are uploaded in the CRA System by the concerned Government department. 

This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha today.

Source : PIB Release, 1st August, 2014