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HomePersonal FinanceGovt Clarifies on Family Pension employees must need to know

Govt Clarifies on Family Pension employees must need to know

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Pension Scheme: The central government has issued an important clarification for parents who receive family pension after the death of their son or daughter (who was in government service).

From now on, in all such cases, it will be mandatory for both the parents to submit life certificate every year, so that they can continue to benefit from the enhanced rate of family pension. This new directive has been issued by the Department of Pension and Pensioners’ Welfare (DoPPW), which comes under the Union Ministry of Personnel, Public Grievances and Pensions.

What is said in the order

According to DoPPW, “When a government employee dies as a bachelor or widower/widow without children, his/her parents will be granted a family pension without examining their financial status. Both surviving parents will receive this pension at the rate of 75 percent of the last pay drawn by the deceased employee. If only one parent is alive, they will receive a pension at the rate of 60 percent, and if one parent dies, the surviving parent will receive a dependent pension at the rate of 60 percent.”

What was the rule before?

Until now, the CCS (Pension) Rules did not require both parents to submit a life certificate every year. Consequently, in many cases, even after the death of one parent, the family pension at the enhanced rate of 75% continued. The government stated that due to this lack of a provision in the rules, in some cases, the higher rate of family pension continued to be paid even after the death of one parent.

Why is ‘Enhanced Family Pension’ given?

Under the CCS (EOP) Rules, 2023, if a government employee dies and is not survived by their spouse or children, their parents receive a family pension. If both parents are alive, they receive 75% of the deceased’s salary as pension. If only one parent is alive, the pension rate is reduced to 60%. This pension does not depend on the parents’ financial status. That is, they receive this benefit even if they have other sources of income.

What will change now

The Central Government has clarified that to ensure that family pensions are paid at the correct rate, it will be mandatory for both parents to submit a Life Certificate every year. This will verify whether both parents are alive and prevent pension payments at the wrong rate. The new provision will ensure that pensions are paid only to eligible individuals and that government funds are used properly.

Who will it affect

From now on, all parents receiving a family pension based on their deceased son’s or daughter’s employment will be required to submit their life certificates annually. If both are alive and receiving a pension at the higher rate of 75%, certificates from both will be required. If one of the parents has passed away, the pension rate will automatically apply at 60%. The government has issued guidelines to all departments to ensure that information about this new rule is disseminated to all pensioner families in a timely manner, so that no family is deprived of the pension or inadvertently violates the rules.

Last date for life certificate

The central government has clarified that all pensioners must submit their life certificates by November 30th of every year. If a pensioner fails to submit their life certificate by this deadline, their pension will be temporarily suspended starting in December.

 

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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