Family Pension Rules: Everyone wants to ensure that they and their families don’t face any financial difficulties upon retirement. Therefore, most people arrange for a pension well in advance, so they can live happily with their families even after retirement . In this series on pensions, we’ll tell you about family pension. Let’s explore what a family pension is and how it can help your family.
What is family pension?
Family pension is also a pension scheme in which, upon the death of a husband, his pension is transferred to his wife. This is because he has nominated his wife. Under this scheme, if the husband dies after the age of 60, the wife will receive half of the husband’s pension. However, if the husband dies before the age of 60, the wife receives the full pension.
If a pensioner dies without a wife, their children receive the pension. However, the rules require that the children be under 25 years of age. According to the EPFO, if the pensioner has two children, the pension will be divided equally between them after their death. Furthermore, if a pensioner’s children are physically disabled, they will receive 75 percent of their pension for life.
If there is more than one wife in the family, the family pension is only available to the wife whose marriage is legally valid and who has been designated as the nominee. According to government rules, the pension is only paid to the spouse who is legally married and registered in government records.
