NPS: If there is no nominee and the account holder dies, what will happen to the money, know the important rules
There was a provision to appoint a nominee
NPS account holders can set aside some part of their earnings while working. If the investor dies, the legal heir will get an annuity from the amount deposited in the years after retirement. Under the PFRDA (Exit and Withdrawals under NPS) Regulations 2015 and amendments, in the event of the death of the subscriber, the total accrued pension assets (100 percent of the NPS corpus) of the subscriber will be passed on to the nominee or legal heirs.
Who will get money if there is no nominee
In this situation, the accumulated pension amount will be paid to the family members as per the legal heir certificate issued by the revenue authorities of the respective state or the succession certificate issued by the court of appropriate jurisdiction. This process may take some time.
Nominee gets money easily
Cases in which the investor has appointed a nominee. Nominees can claim the NPS amount by submitting a completely filled-in death withdrawal form with supporting documents, such as the death certificate of the subscriber, KYC documents, and bank account details.
Documents are required
To claim the amount, the nominee or legal heir of the deceased subscriber has to submit a duly filled out death clearance form along with several supporting documents, such as KYC documents, death certificate of the subscriber, proof of bank account, and other required documents. need to deposit. If more than one nominee is registered, they have to fill out and submit the withdrawal form. However, if a nominee or nominee does not wish to claim the NPS corpus, he/she will have to fill up the resignation letter and submit the same.