PFRDA in its latest circular has communicated that it been decided to declare 'COVID-19 as a critical illness as it is life-threatening in nature.
NPS Withdrawal Covid 19: The investors of National Pension System (NPS) are allowed to make partial withdrawals from the NPS account. Such a partial withdrawal from NPS is allowed to meet any medical expenses, deduction needs of children, buying a home etc. Going forward, the PFRDA has included COVID-19 as the reason to withdraw a partial amount from NPS. In view of the decision of Government of India, which has declared COVID-19 as a pandemic, PFRDA in its latest circular has communicated that it been decided to declare ‘COVID-19 as a critical illness as it is life-threatening in nature.
Therefore, PFRDA has stated that keeping the outbreak of Coronavirus in context, the partial withdrawals from NPS will be permitted to fulfil financial needs of the subscribers, if required to him or her against the request placed for partial withdrawals towards the treatment of illness of subscriber. Such medical expenses could even be for the spouse, children, including a legally adopted child or dependent parents. The other terms and conditions as prescribed under regulation 8 of the PFRDA(Exits and withdrawals under NPS) Regulations, 2015 and amendments thereto shall continue to be applicable regarding defining of limits and frequencies.
Under the current rules, for treatment of specified illnesses, the list of specified illness includes:
(ii) Kidney Failure (End Stage Renal Failure)
(iii) Primary Pulmonary Arterial Hypertension
(iv) Multiple Sclerosis
(v) Major Organ Transplant
(vi) Coronary Artery Bypass Graft
(vii) Aorta Graft Surgery
(viii) Heart Valve Surgery
(x) Myocardial Infarction
(xii) Total blindness
(xiv) Accident of serious/ life-threatening nature
(xv) Any other critical illness of a life-threatening nature as stipulated in the circulars, guidelines or notifications issued by the Authority from time to time.
COVID-19 will now be a part of the critical illness being of the nature of a life-threatening disease. In addition, NPS allows partial withdrawals to meet expenses
(a) for the Higher education of his or her children
(b) for the marriage of his or her children
(c) for the purchase or construction of a residential house or flat.
(d) For the treatment of specified critical illnesses.
In order to make NPS subscribers meet their medical needs for COVID-19 related hospital expenses, one needs to furnish the medical certificate and a formal request form for making a partial withdrawal.