NPS death claim in case of no nomination

Withdrawal due to Subscriber's Death

According to the PFRDA (Exits and Withdrawals under NPS) Regulations 2015 & Amendments thereto, a Subscriber's whole accrued pension wealth shall be distributed to their Nominees or Legal Heirs in the event of their death.

An annuity can be chosen by the nominee or legal heir (pension). On the Death Withdrawal Form, they must choose an Annuity Service Provider (ASP) and an Annuity Scheme.

Documents are required.

To claim the NPS corpus, the Nominee or Claimant must submit a correctly filled Death Withdrawal Form, as well as supporting documents such as the deceased Subscriber's death certificate, KYC certificates, and bank account proof, among other documents.

A withdrawal form must be completed by each candidate or claimant.

In the CRA system, there are multiple nominees.

All Nominees enrolled in the CRA system must file a Withdrawal Form, according to the NSDL website's FAQs.

If one or more Nominees reject to claim the NPS corpus, the following will occur:

A relinquishment document must be filed by nominees who do not desire to obtain NPS benefits.

An Indemnity Bond must be completed by the Nominee requesting NPS benefits.

If there are two nominees, one of whom is a major and the other a minor, the major nominee must fill out a withdrawal form. Along with the minor's birth certificate, the minor's guardian will submit the withdrawal form.

In CRA, there is no nomination in the NPS.

If a late subscriber's nomination is not registered before death, the corpus will be distributed to family members based on a legal heir certificate issued by the State Revenue Department or a succession certificate issued by a court of competent jurisdiction.

When and how can the nominee or legal heir begin receiving a pension?

The Annuity Service Provider will issue the pension (ASP). The annuitant's details (Claimant details) and scanned papers will be shared with ASP according to the Claimant's preference if the nominee or legal heir has chosen annuity. The supplier will issue an annuity policy if the information is correct.

Once all annuity conditions have been met, ASP will confirm the request online via the CRA system. Within the dates provided, the pension will be sent to ASP for annuity issuance.