The central government launched the National Pension Scheme (NPS) as a social security program. Except for members of the military services, employees from the public, private, and even unorganised sectors are eligible for this pension scheme.
The program encourages participants to make periodic contributions to a pension account while they are still employed. The subscribers can withdraw a specified amount of the corpus after retirement. After retirement, as a holder of an NPS account, you would get the leftover sum as a monthly pension.
The NPS concept offers financial security in the later years by being ideally matched to the retirement demands of the working population. But since there are no guarantees in life, you must plan ahead if you want to keep your family safe while you are away.
Your Central Recordkeeping Agency (CRA) registered nominees are the default beneficiaries in the tragic event of your passing. The nominee listed in your office's records is regarded eligible for the NPS money in their absence. In the absence of a nominee, your legal heirs may, nevertheless, make a claim anywhere.
How can a Legal heir/ nominee make claim?
The nominee or legal successor of the dead subscriber must submit a properly completed death withdrawal form with several supporting papers, such as KYC documents, the subscriber's death certificate, proof of bank account, and others, in order to collect an annuity.
Step 1: Send the properly completed claim form and necessary supporting documentation to the relevant POP-SP (Points of Presence Service Provider) for processing. Upon document verification, the POP-SP creates the exit claim ID and locates the claim in the proper sequence.
Step 2: Using this claim ID with restricted access, you can monitor the progress of the claim at the CRA portal. In accordance with the documentation you provided, the claim profits are deposited into your account.
Step 3: The POP-SP resolves the claim in your favor in the last stage and sends the processed documents to the CRA for storage and future use.
What happens in the case of multiple nominees?
In such a scenario, each registered nominee is required to file a withdrawal form. A relinquishment document must be presented by a candidate if they decide not to make a claim. An indemnity bond must be submitted by the candidate who wishes to receive the benefits. If one of the nominees is a minor, a guardian must submit the form on their behalf along with documentation of the minor's birth.
The subscriber's legal heir will get the whole pension payment if no nomination is made. To claim the money, a copy of a family member's certificate or a legal heir's certificate must be included.
Anyone who wants to start planning for retirement early and has a low tolerance for risk should consider the NPS. It goes without saying that having a steady pension (income) throughout your golden years will be a blessing, especially for those who leave private-sector employment. And your nominees or legal heirs can easily claim the money you left for them using the above steps.