Inform CRA in advance to contribute to NPS beyond 60 yrs:PFRDA

Subscribers of National Pension System will have to inform the Central Recordkeeping Agency (CRA) at least 15 days in advance if they wish to continue contributing to their accounts even after attaining the age of 60 years.

Coming out with clarification on its May 2015 norms on exits and withdrawals from the social security scheme, regulator PFRDA also said that subscribers who choose to contribute beyond 60 years of age can exist at any point later.

Further, such subscribers will continue to enjoy the facilities and options like access to CRA system and switch pension fund managers and investment choice.

However, "option of deferment of purchase of annuity would not be available to the subscribers who have voluntarily opted to continue to contribute beyond 60 years of age or superannuation", the regulator added.

The mandatory minimum investment of 40 percent of the accumulated pension wealth for purchase of annuity will be applicable on fund available as on the date of final exit from the NPS "including those contributions and investment income that have been contributed and accrued to the account beyond the age of 60 years or the age of superannuation".

A subscriber can contribution can be made in the NPS account till the age of 70 years.

NPS has over 1.30 crore subscribers with total Asset Under Management (AUM) of more than Rs.1.37 lakh crores.