The National Pension System (NPS) is a popular retirement savings scheme that ensures financial security in old age. But what happens to an NPS account if the account holder passes away?
Does the nominee receive pension benefits, and what happens if no nominee is assigned? Here’s everything you need to know about NPS rules after the death of the account holder.
As per PFRDA (Pension Fund Regulatory and Development Authority) rules, if an NPS account holder dies, the entire NPS corpus (100% of funds) is handed over to the nominee.
The nominee has two options:
1️⃣ Withdraw 100% of the corpus as a lump sum
2️⃣ Opt for a pension (annuity) plan by investing in an Annuity Service Provider (ASP)
If the nominee wants to receive regular pension payments, they must select an annuity scheme while filling out the death withdrawal form.
If the account holder did not nominate anyone, the funds will be handed over to the legal heir or family member.
📌 To claim the amount, the family must provide:
✔ Succession Certificate from the State Revenue Department
✔ Proper verification and documentation
Once the verification process is complete, the NPS corpus is transferred to the legal heir’s account.
To claim NPS funds after the account holder’s death, the nominee or legal heir must submit:
📑 Essential Documents:
✅ Death Certificate of the account holder
✅ Legal Heir Certificate / Succession Certificate
✅ KYC documents (nominee/legal heir)
✅ Bank account proof (nominee/legal heir)
These documents must be attached to the death withdrawal form, which can be downloaded from the official NPS website:
👉 www.npscra.nsdl.co.in
1️⃣ Submit all documents along with the death withdrawal form to the Point of Presence (POP).
2️⃣ The POP verifies the documents and forwards the request to Protean CRA (formerly NSDL CRA).
3️⃣ Once verified, the lump-sum amount is transferred to the claimant’s bank account.
4️⃣ If opting for pension (annuity), details are sent to the Annuity Service Provider (ASP).
The NPS ensures financial support for the nominee or legal heir after the account holder’s death.
✔ If a nominee is assigned, they can withdraw the corpus or opt for a pension.
✔ If no nominee is assigned, the legal heir must claim the funds with proper documents.
To avoid complications, it is always recommended to nominate a family member and keep NPS details updated.
💬 Do you have an NPS account? Have you nominated someone? Let us know in the comments! 👇
