For individuals planning to save for retirement, the National Pension System (NPS) is a government-backed retirement and tax-saving scheme that not only provides tax benefits but also ensures that through compounding till retirement Pension capital accumulation increases over time. It is better to choose a nominee while creating an NPS account as by doing so the nominee will be able to withdraw the entire amount of accumulated pension amount. A maximum of three nominees can be nominated for the NPS Tier I account as per the rules set up by the Pension Fund Regulatory and Development Authority (PFRDA). The aggregate share percentage for all the nominees should be 100 per cent and the subscriber should define the portion of savings that he wishes to provide to each nominee on death. To enroll, PFRDA has allowed online modes and customers can either add a new one or update the existing enrollment details from the comfort of home.
How to Change NPS Nominee Details?
1. Go to cra-nsdl.com and login to your account using User ID and Password.
2. On signing in, click on ‘Demographic Change’ from the menu option and then select ‘Update Personal Details’ option.
3. Now on the ‘Subscriber Modification’ page, select ‘Add/Update Nominee Details’ and then click on ‘Confirm’ to proceed.
4. Now choose the account from Tier 1 or Tier 2 for which you want to declare the nomination.
5. To add nominee details, enter name, select a major or minor, date of birth, relation, guardian’s name, address, pin code, city, state and country.
6. Click ‘Add’, or ‘Save’ if you want to add more than 1 nominee.
7. If you wish to make changes in the enrollment form, click on ‘Modify’ or click on ‘Submit’ to proceed further.
8. Now enter the OTP sent on your registered mobile number and then click on ‘Submit OTP’.
9. Now the subscriber has to e-sign on the subscriber modification form and for this he has to click on ‘e-sign and download’.
10. Click on ‘Proceed’ and then you will be redirected to ‘NSDL Electronic Signature Service’ page under which you need to accept all the declarations.
1 1 Now enter your VID/Aadhaar number and then click on ‘Send OTP’.
12. Now enter the OTP sent to your Aadhaar linked mobile number, and click on ‘Verify OTP’.
13. Click on ‘Download e-Sign File’ and the revised enrollment details will be downloaded in PDF format on your device.
As per the guidelines laid down by the NPS Trust, “The entire accumulated pension money (100%) shall be paid to the nominee/legal heir of the subscriber and there shall be no purchase of annuity/monthly pension. The nominee, if so desired, shall There is an option to buy annuity of the corpus,” in case of exit due to the subscriber.
If you did not enroll anyone for your NPS account while enrolling for the scheme, you can do so after receiving your PRAN by following the online steps mentioned above. You can update the enrollment in your NPS Tier I account at any time after receiving your PRAN. Highlighting the charges required for enrollment, NPS Trust has stated that “If you are enrolling at the time of registration for PRAN, you will not be charged any fee. However, subsequent request for enrollment updation will be treated as service request and you will be charged an amount of Rs. 20/- plus applicable service tax for each request.”