Many people plan their pensions in advance to ensure a comfortable life after retirement and to protect their family from financial difficulties. A family pension is a way to take care of your loved ones if something happens to you.
Under the Employees’ Pension Scheme, 1995, both the member employee and their family members—primarily the spouse and children—are entitled to receive a pension in the event of the member’s death, whether it occurs before or after retirement.
Under this scheme, if the husband passes away, his pension is transferred to the wife, who is nominated beforehand; if he dies after the age of 60, the wife receives 50 per cent of the pension, while if he dies before the age of 60, she receives 100 per cent of the pension amount.
As per government rules before 2004, the widow or widower of a deceased employee is eligible to receive the family pension until they remarry or pass away, and if there is no surviving spouse, the dependent children under 25 years of age become eligible for the pension.
EPFO has set clear guidelines stating that if the deceased employee has children under the age of 25, up to two children can receive the pension, with each child getting 25 per cent of the pension amount, and if a child is physically disabled, they are eligible to receive 75 per cent of the pension for their entire lifetime.
If an unmarried employee passes away, their parents are entitled to receive the full pension for the rest of their lives.
This scheme mainly covers workers from the unorganised sector, including domestic workers, street vendors, drivers, plumbers, tailors, mid-day meal workers, rickshaw pullers, construction labourers, ragpickers, beedi makers, handloom workers, agricultural workers, cobblers, washermen, leather workers, and others.
The family pension for government employees is fixed at 30 per cent of the basic salary, with a minimum amount of Rs 3,500 per month, while for workers in the unorganised sector, the employee’s income must not exceed Rs 15,000 per month, and beneficiaries are required to have a savings bank account and an Aadhaar number.
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