NPS Death Claim: Complete Process Guide

The National Pension System (NPS) is a government-backed retirement savings scheme. When an NPS subscriber dies, the accumulated corpus goes to the nominee or legal heirs. But the process and payout structure differ from other investments.

This guide explains everything about claiming NPS after a subscriber’s death.

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What Happens to NPS When Subscriber Dies?

Private Sector / All Citizens Model

Scenario	Payout Structure
Death before 60	100% lump sum to nominee/family
Death after 60 but before exit	100% lump sum to nominee/family
Death after annuity purchase	Depends on annuity type chosen

For private sector: Entire corpus can be paid as lump sum - no mandatory annuity.

Government Sector Employees

Corpus Size	Payout Structure
≤ ₹5 lakh	100% lump sum to nominee
> ₹5 lakh	80% must be used for annuity by dependent family (spouse/parents), 20% lump sum
No dependent family alive	20% lump sum + 80% to surviving children/legal heirs

Important: Government sector rules require 80% annuity purchase if corpus exceeds ₹5 lakh and dependent family members exist.

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NPS Death Claim Rules

Private Sector / All Citizens (Before Age 60)

Rule	Details
Payout	100% lump sum to nominee
Minimum corpus	No minimum requirement
Tax on lump sum	Entire amount is tax-free
Mandatory annuity	NOT required

Private Sector / All Citizens (After Age 60)

If subscriber dies after 60 but before completing exit:

• Entire corpus paid as lump sum to nominee
• No mandatory annuity purchase required
• Tax-free for nominee

Government Sector (All Ages)

Corpus	Rule
≤ ₹5 lakh	100% lump sum, tax-free
> ₹5 lakh	80% annuity (to dependent family) + 20% lump sum

After Annuity Purchase

If subscriber had already bought an annuity (pension):

• Annuity with return of purchase price: Nominee gets purchase price back
• Joint life annuity: Spouse continues receiving pension
• Annuity without return: Payments stop, nothing to nominee

Important: The annuity type chosen at retirement determines what nominee gets. This decision cannot be changed after purchase.

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Who Can Claim?

Primary: Nominee

Every NPS account requires a nominee. Nominee types:

Nominee Type	Who
Family nominee	Spouse, children, parents
Non-family nominee	Any person (requires family declaration)
Multiple nominees	Up to 3 allowed with percentage split
Minor nominee	Guardian claims on behalf

If No Nominee Exists

Legal heirs can claim with:

• Legal heir certificate OR
• Succession certificate
• Family declaration

For Government Employees (Under NPS Tier-I)

If subscriber was a government employee:

• Nominee claims through employer’s nodal office
• Additional documentation from department may be required

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Required Documents

Standard Documents

Document	Purpose
Death certificate	Proof of subscriber’s death
PRAN card	Account identification
Death claim form	Prescribed NPS form
Nominee’s ID proof	Aadhaar, PAN, Passport
Nominee’s address proof	Utility bill, Aadhaar
Bank account details	For lump sum transfer
Cancelled cheque	Account verification

If No Nominee

Document	Purpose
Legal heir certificate	From tehsildar/SDM
OR Succession certificate	From court
Family declaration form	Prescribed NPS form
All heirs’ ID proofs	KYC compliance

For Government Subscribers

Document	Purpose
Employment certificate	From department
Relieving order	If applicable
NOC from department	Some departments require

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Claim Process: Step by Step

Step 1: Inform CRA (Central Recordkeeping Agency)

The CRA manages all NPS accounts. Currently:

• NSDL e-Governance (for most subscribers)
• KARVY/KFin Technologies (for some subscribers)

How to inform:

• Online: Through NPS subscriber portal
• Offline: Through Point of Presence (POP) or nodal office

Step 2: Obtain Death Claim Form

Form name: Death Claim Settlement Request Form (UOS-S10A)

Download from:

• npscra.nsdl.co.in (NSDL)
• Through your POP (Point of Presence)
• Nodal office (for government employees)

Step 3: Fill the Form

Key sections:

• Subscriber details (PRAN, name, date of death)
• Nominee/claimant details
• Bank account for payment
• Declaration by nominee
• Choice of annuity vs lump sum (for claimant if applicable)

Step 4: Submit Documents

Submit to:

• Private sector/self-employed: Through POP (bank/financial institution where NPS was opened)
• Government employees: Through departmental nodal office

Documents to attach:

• Death certificate (original for verification, copy for records)
• Claim form signed by nominee
• Nominee’s KYC documents
• Cancelled cheque
• PRAN card (if available)

Step 5: Verification

CRA/POP verifies:

• PRAN and subscriber details
• Nominee registration
• Death certificate authenticity
• KYC documents

Step 6: Processing

Once verified:

• Account flagged as “subscriber deceased”
• Corpus calculated (including gains till date)
• Payment processed

Step 7: Receive Payment

• Amount transferred to nominee’s bank account via NEFT/RTGS
• Takes 7-15 working days after successful verification

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NPS Claim: Online Process

Through NPS Portal

Step 1: Visit npscra.nsdl.co.in

Step 2: Login using PRAN credentials (if nominee has access)

Step 3: Navigate to “Services” > “Death Claim”

Step 4: Upload required documents:

• Death certificate (scanned)
• Nominee ID proof
• Cancelled cheque image

Step 5: Submit online form

Step 6: Physical documents still need to be submitted to POP

Note: Online initiation speeds up the process but physical verification is still required.

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Payout Options for Nominee

100% Lump Sum (Default for Death Claims)

• Entire corpus paid at once
• No mandatory annuity
• Tax-free for nominee/legal heir

Voluntary Annuity Option

Nominee can CHOOSE to:

• Take part as lump sum
• Use part to buy annuity for themselves

But this is optional, not mandatory.

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Tax Treatment

Component	Tax Status
Lump sum to nominee	100% tax-free
Annuity income (if chosen)	Taxable as income

Section 80CCD(2) limit: Doesn’t apply to death claims since entire amount is exempt.

Key point: Unlike regular NPS exit where 60% is tax-free and 40% must buy annuity, death claims have no such restriction.

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Timeline

Stage	Duration
Form submission	1 day
POP verification	3-5 days
CRA processing	5-7 days
Payment	3-5 days
Total (typical)	15-20 working days
If documents incomplete	Add 2-4 weeks
If no nominee (legal heir)	Add 2-4 weeks

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Special Cases

Subscriber Had Both Tier-I and Tier-II

Account	Treatment
Tier-I	Death claim process as above
Tier-II	Same nominee receives, simpler process

Both accounts are claimed together using the same form.

Government Employee with Service Benefits

If deceased was a government employee:

• NPS death claim is separate from service benefits
• Family pension, gratuity are additional entitlements
• Nodal office handles coordination

Subscriber Was Contributing Through Employer

If employer was making contributions:

• Employer’s nodal office is the first point of contact
• They coordinate with CRA
• Process may be slightly different

NRI Subscriber Died

• Process is same
• Nominee (in India or abroad) can claim
• Repatriation allowed if nominee is NRI
• POA can be used if nominee can’t come to India

Minor Nominee

• Natural guardian (parent) claims on behalf
• Guardian’s ID proof required
• Amount credited to minor’s account in guardian’s capacity

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Common Problems & Solutions

Problem 1: PRAN Card Lost

Solution:

• PRAN number is what matters, not the card
• Find PRAN from: Old statements, SMS alerts, employer records
• If PRAN unknown, search using subscriber name + DOB at CRA
• Request duplicate PRAN card (but claim can proceed without card)

Problem 2: Nominee Details Are Wrong/Outdated

Solution:

• If registered nominee is deceased, their legal heirs claim
• If nominee details are wrong, legal heir route with proof
• May require affidavit explaining discrepancy

Problem 3: No Nominee Registered

Solution:

• Legal heirs can claim
• Need legal heir certificate or succession certificate
• All heirs must sign or provide NOC
• Family declaration form required

Problem 4: Multiple Nominees Disagreeing

Solution:

• If percentages were specified, payout as per registration
• If no percentage specified, equal division
• Disputes must be resolved before claim (CRA won’t arbitrate)

Problem 5: Employer Not Cooperating

Solution (for corporate NPS):

• Contact POP directly (the bank/entity where NPS was opened)
• POP can process even without employer nodal office
• Escalate to PFRDA if needed

Problem 6: CRA Rejecting Claim

Common reasons for rejection:

• Documents mismatch (name, dates)
• Death certificate not acceptable to CRA
• Nominee KYC incomplete

Solution:

• Get specific rejection reason in writing
• Rectify the deficiency
• Resubmit with correction

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Important Contacts

Entity	Contact
NSDL CRA	1800-222-080 (toll-free)
NSDL CRA Email	[email protected]
PFRDA (Regulator)	1800-110-708
PFRDA Email	[email protected]

POP (Point of Presence)

Your POP is usually:

• The bank where you opened NPS, OR
• Employer’s nodal office (for government/corporate)

Find your POP: Check PRAN statement or NPS welcome kit

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Checklist for NPS Death Claim

Before Starting

□ Death certificate obtained (multiple copies)
□ PRAN number/card located
□ Nominee details known
□ Nominee's ID and address proofs ready
□ Nominee's bank account details (for transfer)
□ Cancelled cheque ready

At POP/Nodal Office

□ Collect death claim form (UOS-S10A)
□ Fill all sections completely
□ Attach all required documents
□ Get acknowledgment with date and reference number
□ Note down contact for follow-up

After Submission

□ Keep acknowledgment safe
□ Track status online using reference number
□ Follow up after 15 days if no update
□ Verify amount received matches expected corpus

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Frequently Asked Questions

Is NPS death claim amount taxable?

No. The entire lump sum received by nominee/legal heir is tax-free.

Can nominee choose annuity instead of lump sum?

Yes. Nominee can voluntarily opt to buy annuity with part or all of the corpus, but it’s not mandatory like regular NPS exit.

What if subscriber had taken partial withdrawal before death?

Remaining corpus (after partial withdrawal) goes to nominee. The partial withdrawal doesn’t affect death claim process.

How long does NPS death claim take?

Typically 15-20 working days if documents are complete. Can take longer if there are discrepancies or no nominee.

Can I claim online without visiting POP?

You can initiate online, but physical document verification at POP is still required for most claims.

What happens to employer’s contribution in death case?

Entire corpus including employer’s contribution goes to nominee. There’s no vesting period for death claims.

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The Bottom Line

NPS death claim process depends on whether subscriber was in private or government sector:

Private Sector / All Citizens:

• 100% lump sum to nominee
• No mandatory annuity
• Entire amount tax-free

Government Sector:

• If corpus ≤ ₹5 lakh: 100% lump sum
• If corpus > ₹5 lakh: 80% annuity to dependent family + 20% lump sum

The process is:

1. Get death certificate
2. Submit claim form to POP/nodal office
3. Provide nominee’s KYC
4. Receive payment in 15-20 days

Key tip: Ensure your NPS account has an updated nominee with correct percentage allocation. This is the single biggest factor in smooth claim settlement.