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National Pension Scheme: Can Nominee be Changed After the Death of the Subscriber? Check New Rules Here

It is necessary for National Pension System (NPS) subscribers to choose a nominee. On being a nominee, the subscriber's money goes to the person to whom he wants to give. In the absence of a nominee, it is very difficult for the family to get money.

Shruti Kandwal
According to the PFRDA circular published on October 22, only subscribers are permitted to nominate candidates.
According to the PFRDA circular published on October 22, only subscribers are permitted to nominate candidates.

On the subscriber's demise, the money is given 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 regarding the nominee clearer.

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 points in the circular have now been clarified.

There can be no change after death

According to the circular, any changes made to the nominee using the subscriber's login information after the subscriber's 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 funds will be distributed to the subscribers' legal heirs.

Employer's record is also important

If the death occurred without a valid nominee, public sector subscribers covered under regulation 3(c) and corporate subscribers covered under regulation 4(c) will be notified if any nominee for the employee is located in the employer's records. He will therefore be provided all the benefits and be regarded as the nominee for NPS.

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