SBI Pension Funds
SBI Pension Funds

Frequently Asked Questions

Frequently Asked Questions

The National Pension System (NPS) is a voluntary, long-term retirement savings scheme designed to enable systematic savings. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and aims to provide retirement income to all citizens.
Any Indian citizen, whether resident or non-resident, between the ages of 18 and 70 years can join NPS.
Yes, an NRI between the age of 18 – 60 years, as on the date of submission of his/her application and complying with the extant KYC norms, can open an NPS account. An NRI can open their NPS Account with a POP Bank where he/she has his/her NRI Account (NRE/NRO).
Yes, individuals can invest in NPS even if they have investments in other schemes.
To open your NPS Account, a mobile-linked Aadhaar Card and DigiLocker, bank account details, and scanned copies of cancelled cheque, PAN Card and signature specimen are required. UPI or Internet Banking is required for initial contribution.
The MSF allows a subscriber, identified uniquely through a PAN across CRAs, to hold and manage multiple NPS schemes. PAN serves as the common identifier, enabling subscribers to access and monitor their holdings across schemes and CRAs.
At the time of account opening, initial contribution of ₹500/- or more is required for Tier-I Account, and ₹1,000/- for Tier-II Account. Annual contribution of at least ₹1,000/- mandatory for the Tier-I NPS Account (the primary NPS Account), and each contribution must be ₹500/- or more. There are no minimum annual contribution requirements for the Tier-II NPS Account. But each contribution must be of ₹250/- or more.
Failure to do will lead to freezing of the account. To unfreeze, subscriber must make the minimum annual contribution. There is no penalty if account frozen due to non-payment of minimum annual contribution.
The government does not contribute to NPS Account. Central and State governments contribute only as an employer, in the case of Central and State government employees.
NPS contributions are managed by the Pension Fund Managers (PFMs), which the subscriber selects at the time of opening his/her NPS Account.
The investment choices available in NPS are – Active and Auto.

In the Active Investment Choice, the subscriber can specify how much of his/her contributions are invested across the asset classes (which are equities, corporate bonds, government securities, and alternate investment funds).

In the Auto Investment Choice, subscribers select one of the four predefined portfolio structures: Life Cycle 75 – High (15E/55Y), Life Cycle – Aggressive (35E/55Y), Life Cycle 50 – Moderate (10E/55Y), and Life Cycle 25 – Low (5E/55Y), differentiated based on the level of equity exposure, where the asset allocation gets automatically adjusted based on the subscriber's age. (Updated nomenclature as per PFRDA circular.)

Under the Multiple Scheme Framework (MSF), subscribers can invest in multiple schemes offered by Pension Funds.

For example, SBI Pension Funds offers SBIPF Jeevan Swarna Yojana (Equity: 90%–100%) and SBIPF Akshay Dhara (Equity: 25%–50%; Fixed Income Instruments: up to 75%).

In case of Government NPS, available investment choices are the Default CG/SG Scheme, Scheme G, Life Cycle 50 – Moderate (10E/55Y) and Life Cycle 25 – Low (5E/55Y).

(The uploaded circular does not confirm the availability of Life Cycle 75 – High and Life Cycle – Aggressive for Government NPS.)
Yes, subscribers can change their investment choices (asset allocation) 4 times in one financial year.
Yes, subscribers can change their pension fund manager once a financial year.
Yes, subscribers can have different pension fund managers and investment choices for Tier I and Tier II accounts.
Tax benefits u/s 80C, 80CCD(1B), and 80CCD(2) are available on contributions to the Tier-I NPS Account only. Partial Withdrawals from the Tier-I NPS Account are tax-exempt. The lumpsum withdrawal on exit from NPS is tax-exempt. No tax is applicable on the annuity plan purchased with NPS corpus.
All Citizen Model (CS & MSF): No lock in period for premature exit.

All Citizen Model (CS & MSF): Vesting period → 15 years or till 60 years of age (whichever is earlier) shall be considered as normal exit.

Corporate Sector (CS & MSF): Vesting period → Till age of retirement / superannuation as defined by the employer

All Citizen Model & Corporate Sector (CS & MSF): Up to 80% lumpsum; At least 20% annuity (This is not available for CPSE & Government Sector Employees)

Normal Exit on Maturity
  • a)Corpus ≤ ₹8 lakh can be withdrawn: 100% lumpsum or Systematic Lumpsum Withdrawal or Systematic Unit Reduction OR Up to 80% lumpsum & ≥20% annuity
  • b)Corpus > ₹8 lakh ≤ ₹12 lakh: Up to ₹6 lakh lumpsum & balance as SUR for min 6 years or annuity OR Up to 80% lumpsum & ≥20% annuity
  • c)Corpus > ₹12 lakh: Up to 80% lumpsum & ≥20% annuity
Premature Exit: Up to 20% lumpsum; At least 80% annuity
  • a)Corpus ≤ ₹5 lakh: 100% lumpsum or Systematic Lumpsum Withdrawal or Systematic Unit Reduction OR Up to 20% lumpsum & ≥80% annuity
  • b)Corpus > ₹5 lakh: Up to 20% lumpsum & ≥80% annuity 100% lumpsum; Option for annuity (Remains same) + option for SLW or SUR
Joining after 60: No Minimum Vesting period. Up to 80% lumpsum; At least 20% annuity.
  • a)Corpus ≤ ₹12 lakh: 100% lumpsum or Systematic Lumpsum Withdrawal or Systematic Unit Reduction OR Up to 80% lumpsum & ≥20% annuity
  • b)Corpus > ₹12 lakh: Up to 80% lumpsum & ≥20% annuity. Option for Systematic Lumpsum Withdrawal or Systematic Unit Reduction Available
Govt sector: Exit on maturity : Up to 60% lumpsum; At least 40% annuity.
  • a)Corpus ≤ ₹8 lakh: 100% lumpsum or Systematic Lumpsum Withdrawal or Systematic Unit Reduction OR Up to 60% lumpsum & ≥40% annuity
  • b)Corpus > ₹8 lakh ≤ ₹12 lakh: Up to ₹6 lakh lumpsum & balance Systematic Unit Reduction for min 6 years or annuity OR Up to 60% lumpsum & ≥40% annuity
  • c)Corpus > ₹12 lakh: Up to 60% lumpsum & ≥40% annuity
In Case of Premature Exit:
  • a)Corpus ≤ ₹5 lakh: 100% lumpsum or Systematic Lumpsum Withdrawal or Systematic Unit Reduction OR Up to 20% lumpsum & ≥80% annuity
  • b)Corpus > ₹5 lakh: Up to 20% lumpsum & ≥80% annuity
Yes. An NPS subscriber can defer withdrawal and continue to remain invested in NPS up to the age of 85 years. The subscriber may choose to:
  • • Defer only the lump sum withdrawal,
  • • Defer only the purchase of annuity, or
  • • Defer both the lump sum withdrawal and annuity purchase.


If your accumulated corpus is more than ₹5 lakh, you can withdraw up to 20% of the corpus as a lump sum, and the remaining 80% must be utilized to purchase an annuity that provides regular pension income.

If your accumulated corpus is ₹5 lakh or less, you may:
  • • Withdraw the entire corpus as a lump sum, or
  • • Opt for Systematic Lumpsum Withdrawal (SLW) or Systematic Unit Withdrawal (SUR), as permitted under the regulations
If a subscriber dies before the maturity date, the accumulated corpus is given to the nominee/legal heir. The nominee can either withdraw the entire amount or use part or entirety of it to purchase an annuity plan. The conditions might slightly vary, depending on the NPS model the subscriber is part of.
Subscriber can initiate an online withdrawal request on his/her CRA platform. Or the subscriber can submit a physical withdrawal request to his/her Point of Presence (PoP).
Documents required to make withdrawals include a duly filled form, PRAN Card, KYC documents, and Bank Account details.
An annuity plan is a financial product where an individual pays a bulk amount to an insurance company in exchange for a regular income stream or pension for a specified period or for life. It may cover nominees post the death of the annuitant.
ASPs are Insurance companies registered with the Insurance Regulatory and Development Authority of India (IRDAI) and empanelled by the PFRDA. ASPs provide annuity plans to subscribers when they exit from NPS.
Annuity Service Providers (ASPs) offer a variety of annuity plans which are combinations of duration of the guaranteed pension, provision of pension for nominee(s), and return of purchase price. The plans and their prices can vary across ASPs.
The annuity income or pension received is taxable as per the individual's income tax slab in the year of receipt.
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