How to claim NPS proceeds on death of subscriber

The National Pension System (NPS) allows individuals to create a retirement corpus by opening a pension account where contributions by the subscriber are collected. In case of death of the NPS subscriber before attaining the pension age of 60 years, the entire accumulated pension amount is paid to the nominee or legal heir of the subscriber. There is no need to purchase any annuity or monthly pension by the claimant


Who can claim?


If the subscriber had registered a nomination with the central record keeping agency (CRA), the nominee can approach the subscriber’s POP. Else, the legal heir can submit the withdrawal request

Forms

Form 103GD for govt employees, Form 303 for corporate or individual subscribers and Form 503 for Lite subscribers can be downloaded from NSDL-CRA website.

Documents

Claimants need to submit the following documents along with withdrawal form: Covering letter from POP/POP-SP Advanced stamped receipt filled and cross-signed on the revenue stamp. Original PRAN card KYC documents attested by POP/POP-SP. Cancelled cheque with subscriber’s name, account number and IFS code Original death certificate If nomination not registered, a legal heir certificate or certified copy of family member certificate needs to be attached. Relinquishment deed from all legal heirs (except claimant) on stamp paper of `100.

Whom to submit to

Withdrawal forms should be submitted to the associated POP/POP-SP for onward submission at CRA. On verification of documents, an exit claim ID is generated by the associated POP-SP or CRA.

Status of withdrawal request

Withdrawal status can be checked through the limited access view functionality available on the CRA website (www.cransdl. com).

Points to note

If the nominee is a minor, the guardian can submit withdrawal form along with birth certificate of the minor.

2 Withdrawal proceeds are directly credited to the bank account of the claimant as per bank details submitted by the claimant.

(Content courtesy: Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)