NPS Updates: Can you get money in the absence of a nominee after subscriber's death? Details Here

NPS Updates: Subscribers to the National Pension System (NPS) must select a nominee, when a subscriber nominates someone, his or her donation goes to that person. It is quite challenging for the family to receive funds in the absence of a nominee.

On the subscriber's passing, the money is delivered to the nominee after being invested in the National Pension System (NPS). Only the nominee is entitled to the money put in the NPS account, in accordance with the regulations established by the Pension Fund Regulatory and Development Authority (PFRDA). However, it does occur occasionally for an NPS subscriber to pass away without selecting a nominee. The PFRDA has now made the rules concerning the candidate more clear.

According to the PFRDA circular published on October 22, only subscribers are permitted to nominate candidates. To protect the interests of the subscribers employed and covered under NPS, special provisions have been implemented under the Exit Regulation to give effect to the nominee made in the service record. To help the different intermediaries involved in the claim process, including the government and non-government sectors, POPs and NPSTs, some issues in the circular have now been clarified.

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NPS Updates: Death Cannot Amendment

According to the circular, any changes made to the nominee using the subscriber's login information after their death are invalid. If the nomination is deemed invalid, the subscriber's prior nomination will be considered valid, and the claim procedure will proceed as necessary. The concerned arbitrator will process claims for invalid nominations and cases as stated in Exit Regulations 3(c) and 4(c), respectively, in the public and non-government sectors, and the monies will be distributed to the subscribers' legal heirs.

Employer's record is crucial as well

If a death occurs without a legitimate nominee, public sector subscribers covered under regulation 3(c) and corporate subscribers covered under regulation 4(c) shall, in such situations, use the employee in the employer's records. If a nominee is discovered, he will be treated as the NPS nominee and get all the advantages. The employer must declare and certify in the system interface that the nominee is listed in the employee's service record and that all benefits are being paid to him. If the nominee changes after one of the subscribers passes away, it will be deemed invalid in the event of OS as well.

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