PFRDA clarifies enrollment rules after death of NPS subscribers

“Nomination can be done by the customer only. However, as per the PFRDA circular issued on October 22, special provisions as per exit rules are enabled to treat nominations made in the service records to protect the interests of subscribers employed and covered under NPS. ,

The following points have been clarified for the benefit of various intermediaries who are involved in exit processing such as Nodal Officers of Government/Non-Government Sectors, POPs and NPSTs to facilitate seamless claim processing.

Any change in enrollment after the death of the subscriber using the login credentials of the deceased subscriber will be treated as invalid.

In all cases involving invalid nominations, valid nominations made by the subscriber before death (valid nominations are those which satisfy the nomination rules defined by PFRDA, as provided in its exit regulations and given in Annex ) will be considered for claim processing.

As defined in Exit Regulations 3(c) and 4(c) having invalid nominations and in Government and Non-Government sector respectively, the claims need to be processed by the concerned arbitrator and the eligible corpus will have to be paid to the legal authority. the heir

Public Sector (Subscribers covered under sub-clause (c) of regulation 3 and corporate sub-section (c) of regulation 4, where no valid nomination exists as per exit rules: Death at the time of exit of such subscriber) Nomination, if any exists in the records of such subscriber with his employer for the purpose of availing other admissible terminal benefits, shall be deemed to have been made for the purpose of availing benefits under NPS in accordance with the provisions of the Exit Regulations.32 (xii).

The intermediaries involved in the processing of claims should be provided with the necessary functionality / system interface by the CRA in their user login so that the claimant details like legal heir or nominee can be obtained as per employer records, if they are observed to have invalid nominations. In the system interface, the employer has to specify and declare and certify that the enrollment exists in the service record of the employee being considered for claim settlement.

In case of Subscribers under UOS: Any change in enrollment after the death of the subscriber using the deceased subscriber, login credentials will be treated as invalid and the amount should be settled in favor of the legal heirs.