How do NPS claims work if the deceased died without a nomination or invalid nomination?

NPS withdrawal rules in case of death without any nominee details.

National Pension System

National Pension System or NPS is a good way to save for your retirement. It is a voluntary contribution to help you save for your old age. The pension is paid out in the form of a lump sum or monthly pension after you retire. If you contribute to the NPS regularly, you can secure your finances in your old age. 

In case of your death, your NPS will be forwarded to the nominee you have given to the NPS governing organization. But what if you have not updated the nominee details and the nominee detail is blank? In that case, do not worry, as your funds are safe, and your family can still withdraw the funds. 

Related: How to open an NPS Account Online?

What if nominee details are not updated in NPS?

In the case of the death of the NPS subscriber, his/her wealth will be transferred to the family of the deceased. Your NPS will be paid out to your family. But your family might need to produce the heir certificate or a succession certificate. The revenue department of the state can issue the heir certificate. The succession certificate is issued by the courts having the competent authority.

You should remember that you need to update your NPS nominee details to the NPS governing body. If you had informed your employer with a written record, then that written record will not work. You need to directly update the nominee details with the governing body. But even if you don’t update, your family can still make use of the heir certificate or the succession certificate as discussed.

What are the NPS Withdrawal Rules?

In the case of the death of the subscriber, the NPS will be transferred to the nominee as per the PFRDA rules. If the legal heir wishes to receive pensions, he/she will have to select an annuity scheme along with an Annuity Service Provider (ASP). You will need to fill in the death withdrawal form along with the supporting documents as given below:-

  • Address Proof
  • An affidavit of self-undertaking
  • Application form duly signed
  • Birth certificate
  • KYC documents
  • Bank account details and proof
  • Death certificate of the deceased subscriber
  • Address proof of the deceased subscriber

Related: How to set up a SIP to make periodic contributions in NPS?

NPS is a good way to save money for your retirement. Although it is voluntary, you should save money in the scheme. In case of the death of the subscriber, the nominee is given the NPS benefits. If you do not mention the nominee, your family can still claim the account after submitting the heir certificate or the succession certificate. The withdrawal rules of NPS require you to fill in the NPS withdrawal form along with the supporting documents.

Also Read:  Linking NPS Account and Aadhar online: What you need to know?

NPS Nominee Change Online | Change of Nominee in NPS | Nominee Change in NPS


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