When an Atal Pension Yojana (APY) account holder passes away, the process for claim settlement can be initiated by the spouse or the nominee. If the subscriber dies before reaching the age of 60, the following steps apply:
Option for Spouse to Continue the Account: If the subscriber passes away before turning 60, the spouse is given the option to continue the APY account. The contributions must be made in the spouse’s name until the original subscriber would have turned 60. Upon completion of the contributions, the spouse will receive the same pension as that of the original subscriber.
Spouse’s Right to Exit the Scheme: If the spouse chooses not to continue with the scheme, they can opt to exit it. In such cases, the accumulated corpus in the account will be transferred to the spouse.
Nominee’s Claim if Spouse is Unavailable: If the spouse is no longer present or does not wish to continue the account, the corpus will be settled in favor of the nominee mentioned in the APY account.
Required Documentation: To process the closure of the APY account after the subscriber’s death, a specific application form must be submitted. This form is essential for initiating the settlement process.
It’s important to note that all APY claim cases are handled by the nodal office, and the sub-office does not have the authority to close such claims directly.
