NPS settlement on unfortunate death of NPS Subscriber
What are the provisions to settle the cases in the unfortunate death of the NPS subscriber during the service?
As per Office Memorandum No. 38/41/06/P&PW (A dated 05 05.2009, the central government subscribers covered under NPS are eligible for family pension in case of death / disability during the service
If the family member opts for family pension, as per regulations all the accumulated wealth shall be transferred to the bank account of the nodal office for further settlement as per government directives.
However, our exit regulations say ( not applicable as mentioned above ) :
Minimum Annuitisation- 80% of accumulated wealth.
Maximum Lump Sum Withdrawal- 20% of accumulated wealth.
If the accumulated pension wealth of the subscriber is equal to or less than two lakh rupees, or a limit to be specified by the Authority, such nominees/legal heirs shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity.