National Pension System withdrawal rules: The Pension Fund Regulatory and Development Authority (PFRDA) has changed the process flow of e-nomination.
National Pension System withdrawal rules: The Pension Fund Regulatory and Development Authority (PFRDA) has changed the process flow of e-nomination for Government and Corporate sector subscribers.
As per the new process flow, after the subscriber initiate e-nomination, the Nodal office would have the option to either reject or accept the request. In case, no action is initiated by the Nodal office within 30 days of the request then it would get accepted in the CRA system.
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“In the interest of Subscribers, it has been decided that once the subscriber initiates the nomination request, the Nodal Office would be given an option of either Accept or Reject the nomination request. In case, the Nodal Office has not initiated any action against the request within the 30 days period, the request would get accepted in CRA system,” PFRDA said in a circular dated 25 August 2022.
“The revised process flow shall also be applicable to the existing e nomination, which are still unauthorized,” it added.
The nomination rules under NPS are defined by PFRDA Exit Regulations.
“In the e Nomination, the Subscribers will also need to submit an online declaration stating that “I understand and consent to that nomination being made by me now shall be invalid ab initio if it is not consistent with Regulation 32 of the PFRDA (Exits and Withdrawals) Regulations, 2015 and amendments”, the regulator said.
The nomination rules for NPS are provided in Regulation 32 under CHAPTER VII of PFRDA(Exits and Withdrawals under the NPS)Regulations, 2015. It says, “a subscriber, at the time of joining the National Pension System is required to make a nomination, in the specified form, conferring on one or more persons the right to receive the amount that may stand to his or her credit in the accumulated wealth or fund in the event of his or her death, before that amount becomes payable or having become payable has not been paid.”
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The nominee or nominees, as the case may be, is entitled to receive on the death of the subscriber all such money which has so remained unpaid.
