Centre increases family pension of central government employees dying within 7 years of service

The government has decided to hike the family pension for central government employee who dies within 7 years of service from 30 percent to 50 percent. With this, the family of the deceased employee will be eligible to draw a family pension at an increased rate of 50 percent of the last drawn pay for the next 10 years.

Earlier, the family pension for the central government employee who passed away in less than 7 years of government service was 30 percent from the beginning. The government increased the pension rate by amending Rule 54 of the Central Civil Services (Pension) Rules, 1972 by a notification on September 19.

The central government felt that the need for enhanced family pension is more in the case of a government employee who dies early in his career, as his pay in the initial phase is much less. The amendment will come into effect from October 1, 2019.

Eligibility

The families of government employees who passed before completing seven years of service within 10 years before October 1, 2019 will also be eligible for the enhanced pension rate with effect from October 1.

The enhanced pension rates will apply to the families of all government employees including the Central Armed Police Forces personnel. The family pension will be paid at an enhance pension rate of 50 percent of the last drawn pension for 10 years.

Background

Earlier, families of government employees who served for at least seven years received 50 percent of the last drawn pay as pension and those who had served for less than seven years were eligible to receive 30 percent of the last drawn pay.