The family pension is the money offered to the family of the government employee if they die while in service. The widow/widower is eligible to receive a pension from the government.
A family pension is given to the spouse of a government employee after their passing. If the partner of the government employee has also passed, the pension is granted to the children of the employee. To be eligible to receive the pension, employees must have begun their government service between January 1st, 1964, and December 31st, 2003. Employees who began their service before 1964 but are covered by the ‘Family Pension Scheme for Central Government Employees, 1964’ are also eligible to pass their pension to their family.
Pension depends on the emoluments drawn by the employee while in government service. In this case, emoluments mean the basic pay. Where there is a variation in emoluments, the average of the basic pay in the last ten months of service is calculated. The pension amount is 50% of the basic pay or average basic pay, whichever is more beneficial.
The minimum monthly pension is ₹9000 per month, whereas the maximum upper limit is 50% of the highest pay in the government of India. Pension is payable until death.
The surviving spouse or children who are below 25 years of age will be eligible for a family pension if such a government servant was in receipt of a pension and has:
For example, Ramesh joined the Indian Defence Accounts Service (IDAS) as a Chartered Accountant in the year 1999. His family was thrilled when he joined this prestigious central government service at the age of 30. Little did they know what fate had in store for them.
In 2020, Ramesh passed away after a massive cardiac arrest, and that too while driving to work. His family was devastated. His family, while mourning him, also worried about the future of their children, which was at stake due to the lost income.
However, the Central Government provided family pensions in such events in 1972 with the Central Civil Services (Pension) Rules.
The Department of Pension and Pensioner’s Welfare (DoPPW) has laid down the rules for the family members claiming the pension:
By default, the spouse/widow of the government servant is eligible to receive the pension. However, the following persons may also be eligible if the spouse is not present:
You will need to decide and nominate the person who should receive the family pension after your demise. The rules provide the eligibility conditions for spouses and children to receive a pension after your passing.
Over 77 lakh people in India receive pension. This is 0.5% of the total population of India.
Source: The Hindu
You can use the online pension calculator on the pensioners’ portal. You need to select the appropriate calculator on the page first, then enter the information in the input area. Here’s a guide on how to calculate the maturity amount for the pension:
After you have entered the service and retirement details, the calculator can give you the basic pension, family policy, and enhanced pension amounts. You can further estimate the commuted pension amount and pension after commutation with the calculator to help you plan your retirement.
A family pension is a very important financial safety net for families of government employees. It ensures that the deceased person's family members can maintain a decent standard of living even after losing their primary earner. By understanding the various aspects of pensions, one can make informed decisions to keep a safety umbrella over their loved ones.
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The family pension rules for state government employees emphasise many factors, including the deceased employee’s last pay, length of service, and the type of pension.
The new family pension rule states that women central employees can now nominate their child rather than just the option to nominate their husband.
Pension to unmarried, divorced, or widowed daughters above the age of 25 shall be payable only after the other children below are no longer eligible for the pension.
The Family Pension Rules for Central Government Employees sets and enforces the nature of the pension, which is a welfare scheme framed to provide relief to the widowed spouse and children of a deceased employee or pensioner.
Pension to widowed daughters above the age of 25 shall be payable only after the other children below are no longer eligible for the pension.
A Disabled son is very much eligible for a family pension for life and will be provided with a pension after the passing of his parents.
A minimum of 30% is granted a family pension as part of the family pension scheme.
