Centre Tightens Rules on Enhanced Family Pension to Parents of Deceased Employees

The Department of Pension & Pensioners’ Welfare (DoPPW) has issued a clarification regarding the procedure for availing enhanced family pension by parents of deceased central government employees. 

The department has stated that both parents must now submit separate life certificates every year to continue receiving the pension at the higher rate.

Eligibility for Enhanced Family Pension

According to the Central Civil Services (Extraordinary Pension) Rules, 2023, family pension becomes payable to the parents when a deceased government servant is not survived by a spouse or eligible children. Under Rule 12(5), parents are entitled to receive family pension for life once other eligible dependents cease to qualify.

In cases where the government employee dies unmarried or as a widower without children, the dependent parents are eligible for enhanced family pension at 75% of the last pay drawn, provided both are alive. If only one parent survives, the pension rate is reduced to 60%.

This provision applies irrespective of the parents’ income from other sources.

Reason for the New Clarification

The DoPPW explained that there was no explicit rule earlier requiring both parents to submit individual life certificates. As a result, in some instances, pension paymentscontinued at the higher 75% rate even after one parent had passed away, causing unintentional overpayments.

To ensure accuracy and prevent such cases, the department has now made it mandatory for both parents to submit their life certificates annually if they wish to continue receiving the enhanced family pension at the higher rate.

Annual Life Certificate Process

All pensioners are required to submit a Life Certificate annually, usually during October and November, to their pension disbursing bank or agency. This can be done either manually or digitally.

 For senior pensioners aged 80 years and above, the submission window opens earlier from October 1 each year to provide additional flexibility.

Enhanced Pension for Families After Retirement

The DoPPW also clarified the rules regarding enhanced family pension in cases where a government employee dies after retirement.

As per Rule 50(2)(a)(iii) of the Central Civil Services (Pension) Rules, 2021, family pension is payable at an enhanced rate for seven years or until the deceased employee would have reached the age of 67, whichever is earlier.

This provision applies to all central government employees, including those with higher retirement ages such as Central Health Service (CHS) doctors, who retire at 65.

Read More: Higher Pension for June 30 Retirees: Punjab & Haryana High Court Gives Relief.

Conclusion

The latest clarification aims to streamline pension disbursement and ensure transparency in the enhanced family pension system. By requiring both parents to submit annual life certificates separately, the DoPPW intends to maintain updated records, prevent overpayments, and ensure that pension benefits reach only eligible beneficiaries in a timely manner.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.