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Family pension hiked

Family pension is a grant provided to the family of a govt employee in the event of his death.

Centre’s big bonanza: Family pension hiked upto 1.25 lakh

There is some good news for those availing family pension, the Centre has hiked the upper ceiling. The upper ceiling of family pensions has been raised from Rs 45,000 to Rs 1,25,000 per month, Union Minister Jitendra Singh informed. “The move will bring Ease of Living for the family members of the deceased employees and would provide adequate financial security to them,” said Jitendra Singh.

What is a family pension?

Pension is a retirement benefit that an employee gets post-retirement. In many cases this retirement benefit is also passed on to the dependent family members, after death of the employee. In such cases, it is called family pension. It is a grant provided to the family of a government employee in the event of his death.

The Minister said that the Department of Pension & Pensioners’ Welfare (DoPPW) has issued a clarification on the amount admissible in case a child is eligible to draw two family pensions after the death of his /her parents. “The amount of both the family pensions will now be restricted to Rs 1.25 lakh per month, which is more than two and half times higher than the earlier limit,” Dr Singh added.

In accordance with sub-rule (11) of rule 54 of the Central Civil Services (Pension) Rules 1972, in case both wife and husband are Government servants and are governed by the provisions of that rule, on their death, the surviving child is eligible for two family pensions in respect of the deceased parents.

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Earlier instructions laid down that the total amount of two family pensions in such cases, shall not exceed Rs 45,000/- per month and Rs 27,000/- per month which were determined at the rate of 50% and 30%, respectively taking into account the highest pay of Rs 90,000/- as per 6th CPC recommendations.

Since the highest pay has been revised to Rs 2,50,000 per month after the implementation of 7th CPC recommendations, therefore the amount prescribed in Rule 54(11) of CCS (Pension) Rules has also been revised to Rs 1,25,000/- per month is 50% of Rs 2,50,000/- and Rs 75000/- per month being 30% of Rs 2,50,000/-.

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As per the existing rule, if parents are Government servants and one of them dies while in service or after retirement, the family pension in respect of the deceased shall become payable to the surviving spouse and in the event of the death of the spouse, the surviving child shall be granted the two family pensions in respect of the deceased parents subject to fulfilment of other eligibility conditions.