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CS Professional · Banking and Insurance - Laws and Practice · Various Government Schemes

Suresh joins the Atal Pension Yojana (APY) at age 25 and chooses a guaranteed monthly pension of Rs 5,000 from age 60. After he reaches 60, he dies while receiving the pension. Under APY rules, who receives the pension, and what is paid to the nominee?

The spouse continues to receive the same monthly pension of Rs 5,000 for life after the subscriber's death. After both the subscriber and spouse are dead, the nominee receives the accumulated pension corpus as it stood at the subscriber's age 60.

  1. ASpouse gets the same Rs 5,000 pension for life; on the spouse's death the nominee gets the pension wealth accumulated at Suresh's age 60Correct
  2. BSpouse gets half the pension; the nominee gets nothing
  3. CNominee alone gets the contributions refunded with no interest
  4. DPension stops and the corpus is paid to the bank

Explanation

Under APY, the subscriber receives the pension for life, then the spouse receives the same pension for life. After both die, the nominee receives the pension wealth accumulated at the subscriber's age 60. Half pension and no refund are incorrect.

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