NPS is a voluntary, defined contribution retirement savings plan that aims to help subscribers make the best decisions possible about their future by allowing them to save consistently throughout their working lives.
Withdrawal due to death of Subscriber
According to the PFRDA (Exits and Withdrawals under NPS) Regulations 2015 & Amendments thereto, in the event of a Subscriber’s death, the Subscriber’s full accrued pension wealth (100 per cent NPS Corpus) shall be distributed to the Subscriber’s Nominees or Legal Heirs, as the case may be.
If the nominee or legal heir desires to receive an annuity (pension), they must select an Annuity Service Provider (ASP) and an Annuity Scheme on the Death Withdrawal Form.
Documents required for nominee/legal heir
The Nominee/Claimant must submit a properly completed Death Withdrawal Form, as well as supporting documents such as [Death Certificate of the dead Subscriber, KYC Documents, Bank Account Proof, and other required documents.
Please keep in mind that each nominee, claimant must file a withdrawal Form.
Where multiple nominees are registered in CRA system According to FAQs available on the NSDL website, All Nominees registered in the CRA system must file a Withdrawal Form.
If one or more Nominees decline to claim the NPS corpus:
- The Nominee/s who do not want to claim NPS benefits must file a relinquishment deed.
- The Nominee who is seeking NPS benefits must submit an Indemnity Bond.
- The format of a relinquishment deed and an indemnity bond can be found in the Forms part of
- this website’s Corporate sector.
- If one Nominee is a major and the other is a minor, the major nominee must complete a withdrawal
- The minor’s guardian will submit the withdrawal form along with the minor’s birth certificate.
When there is no nomination in NPS in CRA
If the deceased subscriber’s nomination is not registered before his or her death, the accumulated pension wealth will be paid to his or her family members on the basis of a legal heir certificate issued by the State’s Revenue Department or a succession certificate issued by a court of competent jurisdiction. Where nomination in invalid
According to the Pension Fund Regulatory and Development Authority (PFRDA) (Exits and Withdrawals Under the National Pension System) Regulations 2015 and amendments thereto, if no valid nomination exists in accordance with these regulations at the time of such subscriber’s exit on account of death, the nomination, if any, existing in such Subscriber’s records with his or her employer for the purpose of receiving other admissible terminal benefits shall be treated as no valid nomination.
When and how the pension will get started, if opted by nominee or legal heir
The Annuity Service Provider (ASP) will issue the annuity (pension). If the nominee or claimant has chosen annuity, the annuitant’s details (Claimant details) and scanned documents will be shared with ASP according to the Claimant’s preference. If the annuitant’s information and scanned papers are correct, ASP will issue an annuity policy.
If any of the documents uploaded are insufficient or if additional documents are required, ASP may contact to complete the annuity requirements.
ASP will confirm Annuity request online in the CRA system once all annuity requirements have been completed, and funds (Annuity Corpus) will be sent to ASP for issue of annuity within the timeframes specified. Within T+2 working days of receiving the payments, ASP will offer annuity policies to family members.