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NPS: Can the nominee be changed after the death of the subscriber? PFRDA cleared

After investing money in the National Pension System (NPS), the money is given to the nominee on the death of the subscriber. As per the rules framed by the Pension Fund Regulatory and Development Authority (PFRDA), only the nominee is entitled to the money deposited in the NPS account. But, at times it happens that the NPS subscriber does not choose the nominee and dies. PFRDA has now clarified the rules related to the nominee.

In the circular issued on October 22, PFRDA has said that the nomination of the nominee can be done only by the subscribers. Special provisions have been made under the Exit Regulation to give effect to the nominee made in the service record to protect the interests of the subscribers employed and covered under NPS. In the circular, some points have now been clarified to assist various intermediaries involved in the claim process, both Government and Non-Government Sectors, POPs and NPSTs.


There can be no amendment after death

The circular states that any modification made to the nominee after the death of the subscriber using the login credentials of the deceased subscriber shall be void. In cases where the nomination is declared invalid, the nomination made by the subscriber before the death will be treated as valid and the claim process will proceed accordingly. Claims for invalid nominations and cases defined in Exit Regulations 3(c) and 4(c) in the public and non-government sector respectively shall be processed by the concerned arbitrator and the funds shall be passed on to the legal heirs of the subscribers.

Employer’s record also important

Public sector subscribers covered under regulation 3(c) and corporate subscribers covered under regulation 4(c) if the death occurred without a valid nominee, in such cases any nominee of the employee is found in the records of the employer So he will be considered as the nominee for NPS and he will be given all the benefits. In the system interface, the employer has to declare and certify that the nominee exists in the service record of the employee and that all benefits are being paid to him. In case of OS also, if any change is made in the nominee after the death of any subscriber, it will be treated as invalid.

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