Although the National Pension Scheme is designed to offer monetary help to a subscriber after retirement, it also offers certain death benefits. In case of death of a subscriber, the nominee/legal heir is entitled to withdraw the accumulated money.
The National Pension Scheme (NPS) was designed keeping the interests of the working population in mind, striving to provide decent financial support to them post retirement. Given the unpredictability of life, this plan is ideal for everyone as it offers peace of mind and comfort to subscribers. A host of features make it perfectly suited to face the harsh reality of life, cocooning not just the subscriber but also his/her family in the case of any eventuality.
Procedure and documents required to claim death benefit
A legal heir/nominee can choose to claim the death benefit available under the NPS in the event of unfortunate demise of the subscriber. The nominee is required to follow certain steps before he/she can get the money. These steps and the documents required are mentioned below.
- Choose and fill the relevant withdrawal form. Different forms are present for different categories of employees and a nominee should choose the form which matches the employee data of the subscriber. Form 101 GD is to be used if the deceased was an employee of the central/state government, form 303 needs to be filled if the deceased was an employee of the corporate sector and form 503 would need to be filled if the employee was protected under the Swavalamban sector.
- PRAN card – The original PRAN card needs to be submitted along with the relevant form. If the PRAN card is unavailable, a notarized affidavit needs to be submitted.
- A cancelled cheque – This cheque should include details about the claimant like name, bank account number and IFSC code. If an individual wishes to have the amount transferred electronically, then he/she would have to give a bank certificate containing details like name, account number and IFSC code.
- The death certificate of the subscriber should be attached with the form.
- A succession certificate/legal heir certificate should be provided as proof of claimant being the legal heir.
- Address and ID proof of nominee/legal heir. This could be any valid government approved ID card like passport, driving license, Aadhar card, etc.
Death Benefits provided under NPS
The NPS is primarily designed to offer financial stability to individuals during their retirement phase of life, but also doubles up as a source to secure the future of a subscriber’s family if he/she happened to pass away. In the unfortunate event of a subscriber passing away before the scheme is encashed, his/her nominee/legal heir can withdraw the amount accumulated in the account. This amount can be withdrawn in its entirety, as a lump sum and there would be no option to purchase annuity or monthly pension after the death of the subscriber.
NPS Other Pages
- HDFC National Pension Scheme
- How to invest in NPS
- NPS Withdrawal Forms
- POP and CRA Charges under NPS
- Axis Bank National Pension System
- Bank of Baroda National Pension System
- Bank of Maharashtra New Pension Scheme
- Central bank of India New Pension Scheme
- South Indian Bank New Pension Scheme
- Canara Bank New Pension System
- Corporation Bank New Pension Scheme
- Federal Bank New Pension Scheme