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The Pension Fund Regulatory and Development Authority (PFRDA) has issued guidelines on handling NPS corpus of deceased subscribers. The National Pension System (NPS) exit and withdrawal processes are governed by the PFRDA (Exits and Withdrawals under NPS) Regulations 2015 and any subsequent revisions. However, according to the statutory regulatory body It has been noted that in certain instances, subscribers had unfortunately passed away after receiving a lump sum, but before annuities were issued, and the funds allocated for annuities were in the CRA System. The PFRDA announced the following guidelines on Thursday that may be used to handle corpus aimed for annuity issuance in such circumstances:
Guidelines for government sector subscribers
According to PFRDA, the annuity shall mandatorily be purchased by the spouse (if any) providing annuity for life of the spouse with provision for return of purchase price (ROP). On demise the spouse, the annuity be re-issued to the family members in the order specified hereunder at the rate of premium prevalent at the time of purchase of the annuity, utilizing the purchase price required to be returned under the annuity contract until the family members in the order specified below are covered,
(i) Living dependent mother of the deceased subscriber
(ii) Living dependent father of the deceased subscriber
After the coverage of the family members specified above, the purchase price or the amount which was to be utilized for purchase of annuity shall be returned to the surviving children of the subscriber and in the case of absence of children, to the other legal heir(s) of the subscriber, as the case may be.
Guidelines for all citizen and corporate subscribers
PFRDA has clarified that the entire accumulated pension wealth paid to the nominees or legal heirs. However, the legal heirs or nominees if opted for can buy the annuity. NPS Trust (NPST), POPs, Corporate and Nodal Officers can engage with all those claimants of those deceased Subscribers who have availed lump sum but not bought Annuity as per the provisions mentioned above.
In order to ensure that all outstanding death claims are processed promptly, NPS Trust has been instructed to monitor the progress and engage with the relevant nodal offices, subscribers, POPs, corporate entities, and stakeholders.
The Pension Fund Regulatory and Development Authority (PFRDA) has recently introduced account opening and address modification options for the subscribers of the National Pension Scheme (NPS) using DigiLocker as a honour commemorating 75 Years of India’s Independence Day Celebration and to celebrate Azadi Ka Amrit Mahotsav. PFRDA stated that Digi Locker will now allow account opening and updation of existing address using Driving License (DL) through DigiLocker.
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