Introduction of Systematic Lump sum Withdrawal for the benefit of NPS Subscribers  – PFRDA

SLW for the benefit of NPS Subscribers and facilitate them with smart withdrawal facility


Issued on: 29.09.2022

Last date to receive Comments/suggestions/feedback: 19 Oct 2022

As per the existing withdrawal guidelines, the subscribers post 60 years/superannuation, can defer availing annuity & withdrawing the lump sum on any combination till 75 years. The lump sum amount can be withdrawn as single tranche or it can be withdrawal on annual basis. If withdrawn annually, the Subscriber has to initiate the withdrawal request each time and the request has to be authorized as the case may be.

Systematic Lump sum Withdrawal (SLW) for the benefit of NPS Subscribers

1. In the interest of Subscribers and ease the process of lump sum withdrawal, PFRDA proposes that the lump sum can be paid systematically on a periodical basis viz monthly, quarterly, half yearly or annually for a period till 75 years as per the choice of the Subscriber. Further, the process can be automated based on one-time request that can be captured online/offline.

2. The Central Record Keeping Agency (CRA) System Withdrawal module of Subscribes is already integrated with Instant Bank Acct verification & name matching through penny drop of PRAN and Bank details, the Systematic Lump sum Withdrawal (SLW) of any defined units/ amount can be provided to the Subscribers if opted and requested for. The facility can be provided in both Tier I & Tier II. However, post capturing SLW request, there won’t be any further contribution in Tier I and the amount in Tier I would be ear marked for Annuity & lump sum as per exit regulations. Partial withdrawal won’t be allowed post setting up of SLW.

3. For Tier-II, the SLW can be availed at any point of time i.e. even before attaining the age of 60 years. This is mainly because of the fact that one can make withdrawals from Tier-II anytime and this facility when introduced would act like a monthly income for the subscriber or his family members.

4. CRA system needs to display in the Subscribers login the approx amount of value of units and the amount may vary as per NAV depending upon market performance.

5. Various options available to Subscribers at the time of retirement viz one-time lump sum withdrawal, SLW, deferment, continuation etc. shall be presented by PFRDA officials during outreach events like Annuity Literacy Program (ALP) and SEEP (Subscribers Education & Empowerment Program)

Benefits of SLW:
a. The choice of SLW at periodical intervals through automation would add flexibility, provide liquidity and hence optimize the retirement benefits.
b. Enable and empower the Subscribers with periodical withdrawal to manage his needs and requirement.
c. Allows the Subscribers to participate and reap market linked investment gains for the amount not withdrawn which continue to lie in PRAN and remain invested as per the choice of investment.
d. Reduce the risk of reinvestment associated with one-time lump sum withdrawal even though the option shall continue.

Keeping the above in perspective, the draft guidelines and process flow proposed and provided at Annexure. The Stake holder comments are invited preferably through filling the Google form (link below).

Google form link:

Suggestions/ Feedback can also be written to

Mr. K. Mohan Gandhi
Chief General Manager – PFRDA
B-14/A, Chhatrapati Shivaji Bhawan,
Qutab Institutional Area,
Katwaria Sarai, New Delhi – 110 016.


Systematic Lump sum Withdrawal for the benefit of NPS Subscribers

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