PFRDA amends NPS exit rules: non-government subscribers can take up to 80% as lump sum
The Pension Fund Regulatory and Development Authority (PFRDA) notified amendments to the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015 on 19 December 2025, letting non-government subscribers withdraw up to 80% as lump sum at normal exit.
Summary
The Pension Fund Regulatory and Development Authority (PFRDA) notified amendments to the PFRDA (Exits and Withdrawals under the National Pension System) Regulations, 2015 on 19 December 2025, aimed mainly at the non-government sector (All Citizen Model and Corporate Sector). Under the amended NPS exit rules, non-government subscribers can take up to 80% as lump sum with at least 20% in annuity at normal exit (earlier 60% and 40%), may withdraw the full corpus if it is up to ₹8 lakh (earlier ₹5 lakh), and All Citizen Model subscribers no longer face the five-year minimum lock-in for premature exit. The maximum entry and exit age has been raised to 85 years (earlier 70 for entry and 75 for exit), the government sector's 60:40 split at normal exit remains unchanged, and lenders may mark a lien of up to 25% of a subscriber's own contribution.
Key facts
- Notified
- 19 December 2025
- Non-government normal exit
- Up to 80% lump sum; at least 20% annuity (earlier 60:40)
- Full withdrawal limit
- Corpus up to ₹8 lakh (earlier ₹5 lakh)
- Lock-in
- 5-year minimum lock-in for premature exit removed (All Citizen Model)
- Entry and exit age
- Raised to 85 years
- Government sector
- Normal exit stays at up to 60% lump sum, at least 40% annuity
Practice MCQs 3 questions
Under the PFRDA amendments notified on 19 December 2025, what is the maximum lump sum a non-government NPS subscriber can take at normal exit?
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Correct answer: C — 80%
PIB 2206763: for the All Citizen Model and Corporate Sector, up to 80% lump sum with at least 20% annuity, up from 60%.
To what age have the maximum entry and exit ages under the NPS been raised by the PFRDA amendments of December 2025?
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Correct answer: D — 85 years
PIB 2206763: entry and exit age increased to 85 years, from a maximum entry age of 70 and exit age of 75.
Consider the following statements about the NPS exit amendments notified by PFRDA on 19 December 2025: 1. Government sector subscribers can now take up to 80% as lump sum at normal exit. 2. The minimum lock-in period of five years for premature exit under the All Citizen Model has been removed. 3. A regulated lender may mark a lien of up to 25% of the subscriber's own contribution. Which of the statements given above is/are correct?
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Correct answer: B — 2 and 3 only
PIB 2206763: the five-year lock-in was removed for the All Citizen Model, and lenders may mark a lien up to 25% of the subscriber's own contribution. For the government sector, normal exit remains up to 60% lump sum, so statement 1 is wrong.