The pension fund regulator has introduced e-nomination facility for its existing government and corporate sector subscribers who want to change their nomination in the Permanent Retirement Account Number (PRAN), the unique and portable number provided to each subscriber under the National Pension System (NPS).
Subscribers can their log in to their account and use the e-nomination facility. They can also submit the application for changes in the nomination physically to the associated nodal officers, corporate or points of presence.
A circular issued by Pension Fund Regulatory and Development Authority (PFRDA) has noted that in case of e-nomination of subscribers associated with the government or corporate sector, the e-nomination requests will have to be authorised by the associated nodal office for changing the nomination in the PRAN of subscribers. “There are a large number of pendency of e-nomination requests of subscribers, which are attributed to the non-authorisation by the associated nodal office/corporate,” the circular says.
Once the subscriber initiates the nomination request, the nodal office would be given an option to either accept or reject the nomination request. In case the nodal office has not initiated any action against the request within 30 days, the request would get accepted in the CRA system. In the e-nomination, the subscriber will have to submit an online declaration.
At the time of joining the National Pension System, a subscriber 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 credit in the accumulated wealth of fund in the event of his death. In case the nominee predeceases the subscriber, then the nomination will become void and of no effect. A subscriber may in his nomination distribute the amount that may stand to his credit in the fund. Also, under the PFRDA Regulations, if a subscriber has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to the family.
Change in nomination
If at the time of making a nomination the subscriber has no family, the nomination will be in favour of any person. But if the subscriber has a family, such nomination will be deemed to be invalid and the subscriber will have to make a fresh nomination in favour of one or more persons belonging to the family. A fresh nomination will have to be made by a subscriber on his marriage and any nomination made before the marriage will become invalid.