NPS (National Pension Scheme), a government-initiated voluntary contribution to provide retirement benefits, has gained traction and its subscriber base under various schemes of the NPS has crossed the six-crore-mark, a report published by the businessline in April 2023 revealed.
The Pension Fund Regulatory and Development Authority (PFDRA) allows NPS members to add up to three nominees to their accounts.
A male subscriber can add his spouse, children, dependent parents, and the widow and children of his deceased son as nominees to his NPS account. Meanwhile, a female can add her spouse, children, dependent parents, spouse’s dependent parents, and the widow and children of her deceased son.
In case when a nominee predeceases the NPS subscriber, the nomination will become void and the subscriber has to file a nomination again.
Note that NPS subscribers can nominate up to three individuals and distribute the percentage of accumulated pension funds among the nominees.
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