Nps account withdrawal

suneetha Jain (Querist) 26 April 2020 This query is : Resolved
My husband is terminated from SBI in 2012 due to poor performance during probation. At the time of his termination, his NPS account has Rs 1 Lakh.
How can we withdraw the amount now?? NPS website says his account is frozen due to non funding of amount into his account and we need to deposit Rs 1000/- to make it unfreeze. Further, NPS website says that withdrawal is possible only after 60 years of age. There is no mention of the fate of candidates who had lost job due to various reasons like termination.
My queries are:
1. What is POP as when we log into our NPS account, it says that we should contact nearest POP. What does that mean??
2. Is there any way to get our amount as we are in need of money and we cannot wait till we reach 60 years of age as it is a long way to go (still 30 years)

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Quick Summary

This discussion addresses how to withdraw funds from an NPS account when the account holder was terminated from employment before reaching 60 years of age. It clarifies the role of Points of Presence (POPs) and explains the conditions for premature exit, including the possibility of a full lump sum withdrawal if the corpus is under Rs. 1 lakh and 10 years have passed since joining. The advice suggests contacting the relevant POP and potentially representing the case in writing, especially if the termination was not handled correctly.

Rajendra K Goyal (Expert) 27 April 2020
Various facilities (like opening Permanent Retirement Account, contributing to NPS etc) will be required to be provided to all the citizens (known as 'Subscribers' in the NPS architecture) at various locations across India. These processes shall be carried out through the entities known as Points of Presence (POPs) appointed by the PFRDA. POPs shall provide the services under NPS through their network of branches called POP Service Providers (POP-SP).

Rajendra K Goyal (Expert) 27 April 2020
As per PFRDA (Exits & Withdrawals under NPS) Regulations 2015, in following conditions Subscriber can exit from NPS:
a. Upon Superannuation - When a subscriber reaches the age of Superannuation/attaining 60 years of age, he or she will have to use at least 40% of accumulated pension corpus to purchase an annuity that would provide a regularmonthly pension. The remaining funds can be withdrawn as lump sum.
If the total accumulated pension corpus is less than or equal to Rs. 2 lakh, Subscriber can optfor 100% lumpsum withdrawal.
b. Pre-mature Exit - In case of pre-mature exit (exit before attaining the age of superannuation/attaining 60 years of age) from NPS, at least 80% of the accumulated pension corpus of the Subscriber has to be utilized for purchase of an Annuity that would provide a regularmonthly pension.The remaining funds can be withdrawn as lump sum.However, you can exit from NPS only after completion of 10 years.
If the total corpus is less than or equal to Rs. 1 lakh, Subscriber can opt for 100% lumpsum withdrawal.
c. Upon Death of Subscriber - The entire accumulated pension corpus (100%) would be paid to the nominee/legal heir of the subscriber.
(Taken from NSDL-FAQ site)

Raj Kumar Makkad (Expert) 27 April 2020
1. POP means Point of Presence meant to deal with the pension, annuity of the employees.

2, The retaining period for 60 years is only for those employees who are in service and have to omplete that period, however, as per Regularion B as mentioned above, you may represent in writing to the bank authorities.

Rajendra K Goyal (Expert) 28 April 2020
If the total amount is less than 1,00,000/- and 10 years have passed, you can withdraw the amount in full.

Recently tax benefit has been extended in NPS withdrawal subject to conditions, may refer the recent guidelines from Government.

Raj Kumar Makkad (Expert) 30 April 2020
It is necessary to represent the bank in the light of the dismissal from the service. If no fruitful action is taken then serve a legal notice and file a civil suit against the banker.

Rajendra K Goyal (Expert) 01 May 2020
The person was terminated in 2012, it seems too late to initiate any action against so called irregular termination at present.

Raj Kumar Makkad (Expert) 01 May 2020
If you were engaged in the representations and it was the department which took sufficient time to decide your representations, you cannot be blamed for that delay and accordingly there shall not be the issue of delay and latches before you.

Rajendra K Goyal (Expert) 02 May 2020
Agree, with the expert that the delay can be covered if proper correspondence continued. But it should be noted that the officer was terminated when he was on probation.

SBI probationary officers have clear term in the appointment letter ihat if the probation is not completed successfully Bank can terminate their appointment.

Time and terms of appointment are main hurdles in success on this front.

Raj Kumar Makkad (Expert) 02 May 2020
The last opinion of Mr. Goyal would have prevailed had the author been dismissed simplicitor during the period of his probation but he has been blamed without affording an opportunity of hearing hence he has got cause of action to initiate. There are plenty of judgments in favour of the author on this point.

Rajendra K Goyal (Expert) 03 May 2020
Terms of appointment in SBI as PO is as such that if probation is not completed successfully the person can be terminated. Performance has to be shown in the written tests / training etc. Good score / performance provide the chance to be placed in higher scale grade.

As mentioned in the problem, the person was terminated due to the poor performance, it shows he was duly informed regarding poor performance and due chance was given to represent as per procedure.

Raj Kumar Makkad (Expert) 03 May 2020
The subject under discussion neither forms part of the query nor is the requirement of the author. The author only wants the return of Rs. 1 lkh lying with the banker and who has refused to return the same before the completion of 60 years of her husband. What is the relevance of th epresent issue under discussion?

Raj Kumar Makkad (Expert) 03 May 2020
In which line the author has mentioned that her husband was provided an opportunity of hearing prior to his termination?

Rajendra K Goyal (Expert) 04 May 2020
The author was advised to proceed against termination by one of the experts in his advice.

It is advised that the chance to proceed against termination had been exhausted due to various reasons / chances of success are almost nil if proceeded.

Rajendra K Goyal (Expert) 04 May 2020
NPS money is not with Bank, it is with NPS management which is Managed as per government directions not by RBI directives.

suneetha Jain (Querist) 07 May 2020
Thank you all the experts

Raj Kumar Makkad (Expert) 07 May 2020
You are always welcome Ms. Suneetha Jain.

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