Joe Paterno earned a state pension of $13.4 million for his 61-year coaching career at Penn State.
Paterno's family announced Tuesday through a spokesman that Paterno's widow, Sue, would receive an initial payment of $10.1 million by the end of May, with the rest to be paid out over the next two years.
The family says calculations were made through the standard formula for anyone in the State Employees' Retirement System.
Paterno never accessed his pension.
Family spokesman Dan McGinn says the Paternos will also donate $1.5 million to Penn State-related or State College-area charities.
Paterno died in January at age 85, less than three months after being ousted by trustees in the aftermath of child sexual abuse charges against retired assistant coach Jerry Sandusky.
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