NPS : Partial withdrawal for skill development/re-skilling, other self development activities and establishment of own venture or start-ups – PFRDA Circular

NPS : Partial withdrawal for skill development/re-skilling, other self development activities and establishment of own venture or start-ups – PFRDA Circular

NPS : Partial withdrawal for skill development/re-skilling, other self development activities and establishment of own venture or start-ups – PFRDA Circular
पेंशन निधि विनियामक और

विकास प्राधिकरण

बी—14/ए, छत्रपति शिवाजी भवन,

कुतुब संस्थागत क्षेत्र,
कटवारिया सराय,  नई दिल्ली—110016
PENSION FUND REGULATORY

AND DEVELOPMENT AUTHORITY

B-14/A, Chhatrapati Shivaji Bhawan,

Qutab Institutional Area,

Katwaria Sarai, New Delhi-110016.
Circular 

Circular No. PFRDA/2018/47/Reg-Exit/4

Date: 24.05.2018
To, 
All Stakeholders and subscribers under NPS 
Subiect: Permission of Partial withdrawal “Towards meeting the expenses by
subscriber for skill development/re-skilling or for any other
self-development activities and meeting the expenses by subscriber for
establishment of own venture or any start-ups 

In continuation of circular no- PFRDA/2018/40/Exit dated 10.01.2018, issued
on applicability & handling of partial withdrawal, we are issuing this
circular referring the terms of proviso (f) & (g) of sub-regulation
(1)(A) of regulation 8 of Pension Fund Regulatory and Development Authority
(Exits and Withdrawals under the National Pension System) (Fourth
Amendment) Regulations, 2018, notified w.e.f 18.05.2018. Authority hereby
prescribes the following- 
1. Partial withdrawal “Towards meeting the expenses by subscriber for skill
development/re-skilling or for any other self-development activities”. 
(i). Definition: 
“Self-development/Skill Development/Re-skilling” of an employee defines the
value addition to the employee in terms of knowledge and acquiring new
skills related to job & personality development. Value addition in the
skills of the employee not only add value for the organization but also for
own development of the employee to increase the opportunity for his/her
professional career by gaining higher education/professional
qualifications/technical courses etc . It also enables the employee to
undergo, in or out of India, for a special course consisting of higher
studies or specialized training in a professional or a technical subject
and having a direct close connection with the sphere of his duty.
(ii). Coverage :
 
a). Skill Development/Re-skilling of emponee/SeIf-development activities
(on request of employee) sponsored by employer for employee

shall not be covered for eligible class for partial withdrawal
because in such programmes employer bears all the expenses 

b). Skill Development/Re-skilling of employeeISeIf-development
activities (on request of employee) wherein employee-employer
relationship is established, following will be eligible for partial
withdrawal. 
Course/degree/diploma/certificate for Self-development activities/Skill
Development/Re-skilling of an employee which are not sponsored by employer
will be eligible for partial withdrawal on the request of the employee,
provided following conditions are fulfilled 
(a) A “No objection Certificate “ should be provided by employer if the
employee-employer service rules/regulations/guidelines provide for the
same. 
(b) In respect of identification of the course/degree/diploma/certificate
for higher education/professional qualifications/skill development programs
etc , the duration of the same should be 3 months or more 
(c) The course should be recognised by University/approved organisation
recognised institutes/registered centres such as
AICTE/UGC/NISM/NIBM/ICAI/IIM/other accredited bodies. 
(d) The course should be either a regular program or a distance education
program or a skill development program. 
(e) Documents should be verified by the processing nodal
office/PoPs/Aggregators before authorising partial withdrawal. 
(f) Amount which can be releases under this clause shall be subject to the
actual fee of the course /training , subject to the maximum ceiling of 25 %
of employee’s own contributions, without considering the returns thereto. 
(iii). Documentation:
 
The Nodal office/PoP/Aggregator would ensure that the subscriber has
provided following documents before authorizing partial withdrawal: 
a. Admission /sanctions letter from university in India/abroad with fee
details. 
b. For distance learning programs , copy/s of invoice/s which confirm the
payment of required fee for desired course 
c. For other skill development programmes, copy of invoices confirming
payment of fee for the desired course. 
d. Study leave sanction Ietter/NOC provided by the
organisation/department/ministry, if required in terms of the employee’s service conditions 
2. Partial withdrawal “Towards meeting the expenses by subscriber for
establishment of own venture or any start-ups” 
(i). Definition:
 
“Start-ups/establishment of own business” means setting up a new entity
bringing existing business under any registration guidelines issued by
Government of India. 
(ii). Coverage:
a). Partial withdrawal under this clause shall not be applicable where
employee- employer relationship exists.
b). For subscribers who are registered under All Citizen Model (In an
Individual Capacity) : Following shall be covered under this clause
(a) Start-ups/establishment of new business.
(b) Managing family business ( in the name of the subscriber ) with valid
registration with government authorities like GST/Income Tax/Govt.
Departments
(c) Existing business (in the name of the subscriber) under the
registration issued by Government authorities like GST/Income Tax/Govt.
Departments.
(d) Acquiring existing business (from others ) with valid registration in
his/her name.
(e) Entity should be classified as either a proprietorship or a partnership
only.
(f) Professionals
(g) Self-employed individuals. 
(iii). Documentation:
 
For the purpose of identification for grant of partial withdrawal; nodal
office/PoP/Aggregator would ensure before authorizing partial withdrawal
that the subscriber has provided the following documents 
a. Registration Certificate of entity.
Read also :  Benefits to Dependants of missing CG Employees
b. Proof of ownership of the entity ( it should be in the name of the
subscriber)
c. Registration number issued by Government authorities like GST/Income
Tax/Govt. Departments. 
3. Limits
: It shall be as mentioned under regulations 8 (B) of the Exit Regulations
i.e 
(a)
the subscriber shall have been in the National Pension System at least for
a period of three years from the date of his or herjoining; 
(b)
the subscriber shall be permitted to withdraw accumulations not exceeding
twenty-five per cent of the contributions made by him or her and standing
to his or her credit in his or her individual pension account, as on the
date of application for withdrawal without considering any returns thereon; 
4. Frequency
: It shall be same as mentioned under the existing regulations 8 (C) i.e
the subscriber shall be allowed to withdraw only a maximum of three times
during the entire tenure of subscription under the National Pension System. 
5. Other terms & conditions and regulatory conditions as mentioned in
the regulation 8 of Pension Fund Regulatory and Development Authority
(Exits and Withdrawals under the National Pension System) Regulations, 2015
and amendments thereto shall continue.
Read also :  DoPT OM: Completion of formalities in the matter of promotion of CSSS grades
Venkateswarlu Peri
(Chief General Manager) 
Source: PFRDA
[http://www.pfrda.org.in//MyAuth/Admin/showimg.cshtml?ID=1368]
logo300x300FEVICON 18
https://https://www.facebook.com/stafftoday
https://feedburner.google.com/fb/a/mailverify?uri=blogspot/jFRICS&loc=en_US
https://twitter.com/stafftoday

COMMENTS