Following the circular on VC withdrawals by the National Pension Commission, some adjustment have been made on voluntary contribution withdrawal and have been highlighted below:
Active/mandatory contributors can only withdraw 50% of their VC after the contributions have been retained for a period of 2 years in their RSA. The 50% balance of VC will form part of the RSA balance which will either be accessed as Lump Sum and programmed withdrawal or used to purchase an annuity upon retirement.
Subsequent withdrawals shall only be on the additional contributions made after the last withdrawal. Only 50% of additional contributions made after the last withdrawal can be withdrawn while the outstanding 50% will be accessed at retirement.
It is important to note that tax deduction is applicable where contributions are less than 5 years at the time of withdrawal.
Foreigners/ Exempted Persons are permitted to withdraw their entire VC after the contributions have been retained for a period of 2 years. However, all withdrawals are subject to tax deduction on both the income earned and the principal amount if the withdrawal is less than 5years from the date of contribution.