NPS SLW: Take Your Lump Sum as Monthly Payouts, Not One Cheque

Systematic Lump Sum Withdrawal (SLW) lets an NPS subscriber draw the lump sum part of the pension corpus in regular instalments instead of one cheque. You can pick monthly, quarterly, half-yearly or yearly payouts, running till age 75, set up once at the time of your normal exit at 60 or superannuation.

If you are short on time, jump to How to set up SLW on the CRA portal below.

PFRDA introduced this facility through circular PFRDA/2023/30/SUP-CRA/10 dated 27 October 2023. The circular states the subscribers are allowed to withdraw up to 60% of their pension corpus, through the SLW on a periodical basis viz. monthly, quarterly, half-yearly or annually for a period till 75 years of age. You choose the frequency and amount; under the CRA SLW process, the units not yet redeemed stay invested in your NPS account, so their value remains market-linked.

Suppose Mr Rao retires at 60 with an NPS corpus of ₹50,00,000. He sets aside the minimum annuity portion and does not want the lump-sum-eligible amount, say ₹30,00,000, landing in his account at once. So he sets up SLW: the CRA pays him a fixed sum every month from the lump sum portion, up to age 75, while the units not yet paid out stay invested.

Note: this is an illustration only. The actual instalment depends on the amount and frequency you choose and how long you run the SLW. The invested balance is market-linked, so its value can rise or fall. We do not promise any return. Use the official NPS calculators and your own numbers before deciding.

People mix up two different decisions.

• How much of your corpus you can take as lump sum versus annuity. That is the exit split, covered in our guide on the NPS exit rules and the lump sum versus annuity split.
• How you receive the lump sum part: in one cheque or in instalments. That is SLW, and it is what this page is about.

SLW does not change your annuity requirement. It only changes the delivery of the lump sum you are already entitled to take.

SLW is available at normal exit from NPS, which is when you reach 60 years of age or superannuation. As per the existing exit guidelines, subscribers post 60 years or superannuation can defer availing of annuity and withdrawing the lump sum on any combination till 75 years of age. SLW slots into that window.

The split between lump sum and annuity depends on your sector, and the rules changed in late 2025. As of June 2026:

Confirm your exact split with your CRA before you exit, because small-corpus cases and sector rules differ. SLW then delivers whatever lump sum portion you are taking, in instalments.

You set up SLW at the time of your normal exit. The transaction CRA portal has moved to the Protean platform, so use the current login link your CRA gives you.

1. Log in to your CRA account. Use your PRAN (Permanent Retirement Account Number) and password at your CRA's subscriber login.
2. Start the normal exit or withdrawal request. Choose the exit option for age 60 or superannuation.
3. Choose SLW for the lump sum part. Select Systematic Lump Sum Withdrawal instead of a single lump sum payout.
4. Pick your frequency. Monthly, quarterly, half-yearly or annually, as allowed in the circular.
5. Set the amount and the end date. Enter the instalment value and the period, up to age 75.
6. Buy the annuity for the remaining portion. Pick an annuity service provider and scheme for the minimum annuity part.
7. Complete e-sign and verification. Authenticate with OTP or e-sign and submit. Keep the acknowledgement.

If the portal does not load or you are unsure, contact your Point of Presence (your bank or fund house that opened the NPS account) for help. Do not guess; a wrong frequency or amount is hard to reverse mid-run.

Keep expectations realistic here.

The lump sum you take at superannuation from NPS is exempt up to 60% of the corpus under Section 10(12A) of the Income-tax Act. The annuity you later receive is taxed as income in the year you receive it.

What is not fully settled is the tax treatment of the corpus that stays invested while you draw SLW instalments, and of any amount above the older 60% ceiling under the 2025 relaxation. The Ministry of Finance clarification on this is awaited as of June 2026. So do not assume every SLW instalment is automatically tax-free. Confirm your specific case with a tax adviser or the official NPS Trust helpdesk before you file.

For a wider view of pension and exit planning, see our NPS exit rules guide and keep The RTI Playbook handy if you need to file an RTI with a government office over a delayed pension or NPS grievance.

• Find your PRAN and confirm your CRA login works.
• Note your expected corpus and your sector (government or non-government).
• Decide a rough instalment frequency: monthly for steady income, or quarterly or yearly.
• Read the lump sum versus annuity split so you know how much qualifies for SLW.
• If a government office is sitting on your NPS or pension request, see how to file an RTI online.

SLW lets you receive the lump sum part of your NPS corpus as regular instalments, monthly, quarterly, half-yearly or yearly, up to age 75, instead of one single payout. You set it up once at normal exit. PFRDA introduced it through circular PFRDA/2023/30/SUP-CRA/10 dated 27 October 2023.

The circular allows up to 60% of your pension corpus through SLW. The exact portion depends on your sector and the 2025 exit rules; the rest goes towards the minimum annuity. Confirm your split with your CRA before exit.

The facility is set up at exit with a chosen frequency and period. Mid-run changes depend on your CRA's current process and may be limited. Do not assume free changes. Ask your CRA or Point of Presence what edits are allowed before you start, and keep a record of your instruction.

No. The 80 percent or 60 percent figure is how much of your corpus you can take as lump sum versus annuity. SLW is only about how that lump sum is paid to you, in one cheque or in instalments. See our NPS exit rules guide for the split itself.

Yes. SLW does not remove the annuity requirement. You still buy an annuity for the minimum portion set by your sector rules, and SLW handles only the lump sum part. Government subscribers keep at least 40% in annuity; the 2025 amendment lowered the minimum to 20% for many non-government subscribers.

Do not assume that. The lump sum at superannuation is exempt up to 60% under Section 10(12A). The tax on the corpus that stays invested during SLW, and on amounts above the older 60% ceiling, is awaiting a Ministry of Finance clarification as of June 2026. Confirm your case with a tax adviser before filing.

• PFRDA circular PFRDA/2023/30/SUP-CRA/10 dated 27 October 2023, Facility of Systematic Lump sum Withdrawal (SLW) for NPS Subscribers, pfrda.org.in.
• PFRDA (Exits and Withdrawals under the NPS) Regulations, 2015, Regulations 3 and 4, and the 2025 amendment.
• Section 10(12A), Income-tax Act, 1961, on NPS lump sum exemption at superannuation.

• NPS exit rules: lump sum versus annuity split
• How to file an RTI online
• The RTI Playbook

Reviewed June 2026. Rules change; confirm current PFRDA exit terms with your CRA before you act.