Apart from monthly pension to the employees on retirement, it is also paid to the family members in the event of their death. Today we are going to tell you about family pension.
Many people think that only those doing government jobs get pension, but it is not so. If you work in the private sector, then your company deducts a part of your salary in the form of Provident Fund (PF). A part in this is also deposited by the company i.e. the employer. The same amount not only helps in creating a retirement corpus for you. But it also creates a financial security net for your family. Apart from monthly pension to the employees on retirement, it is also paid to the family members in the event of their death. Today we are going to tell you about family pension.
What is family pension?
Pensioners get pension as per the formula from their retirement till their death. In the event of his death, pension payment will not stop completely. Wife and children if their age is less than 25 years, will be eligible to receive pension. Even if the EPS member has made a contribution to the pension fund before death, the family will still receive the pension. If the employee dies while on the job, the minimum guaranteed pension given to his wife will be Rs 1,000 per month.
Who is eligible to receive it?
As per the definition of family in EPS 95, spouse and children (below 25 years of age) are entitled to pension. This definition also includes children legally adopted by EPS members. Widow pension given to the wife of the deceased pensioner will be paid for her entire life or until she remarries. If he remarries, the children’s pension will be converted into orphan pension, which will be higher.