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The pension benefits are granted to the government servants in the event of their death or retirement. After their death, these benefits are also extended to their dependent family, subject to certain rules and conditions.
The Definition of Family and Corresponding Eligibility
The family pension can only be granted if the family members of the deceased person come under any of the following categories-
| Sr. No. | Relationship to the deceased individual who was a government employee in service or retired | Pension Period |
| Category I | ||
| 1 | Surviving spouse | Pension will be granted till death or remarriage of the spouse, whichever is earlier |
| 2 | Children |
Children are entitled to a pension. However, they will stop receiving a pension on meeting any of the following conditions, whichever is earlier.
|
| Category II | ||
| 3 | Unmarried, widowed, or divorced daughter |
Regular pension will be granted until they meet any of the following conditions, whichever is earlier, after which they will stop receiving the pension.
|
| 4 | Dependent parents | The family pension will be granted till death. |
Family members falling under Category II will be eligible for family pension only after Category I family members cease to be eligible to receive a pension, and there is no differently-abled child of the deceased pensioner to receive such pension.
Important Notes
- The deceased government employee has not left behind any wife or children.
- The parents were completely dependent on the deceased government servant during his lifetime.
- The income of such parents does not exceed Rs 3,500 per month.
- Divorced Wife While a divorced wife is not eligible for any pension, eligible children from the divorced wife and the deceased person, will get the share of the family pension that the mother would have received at the time of death of her husband had she not been divorced.
- Parents Parents can get the family pension only if
- More than One Widow The Hindu Marriage Act 1955 prohibits polygamy. Therefore, only the widow from the first marriage would be considered as a legally wedded wife, making her the sole benefactor of pension. In all other cases, all the surviving widows will get family pension divided equally among them.
- Missing Government Servant or Pensioner If a government employee or a pensioner goes missing, the eligible family members should lodge a First Information Report (FIR) with the concerned police station and obtain a report from the police that the whereabouts of the missing person is not traced after all efforts.The family pension can be sanctioned to the eligible family members after the lapse of six months from the date of lodging the FIR.
How Family Pension is Calculated
With effect from January 1, 2006, the family pension is calculated at a uniform rate of 30% of the last basic pay drawn by the deceased or the retired individual subject to a minimum of Rs 3,500.00 per month and a maximum of 30% of the highest basic pay.The definition of basic pay is as per the service and remuneration rules of the concerned department.
Enhanced Rate of Family Pension
If an individual dies after rendering at least 7 years of continuous service, their family members will gent family pension at enhanced rates:
| Conditions | Death while in service | Death after retirement | The maximum period for which enhanced rate of pension is admissible |
| If not governed under Workmen’s Compensation Act 1923 | Twice the family pension to be paid at a normal rate or 50 per cent of the pay last drawn, whichever is less | Twice the family pension to be paid at a normal rate or the pension of the employee at the time of retirement or 50 per cent of the pay last drawn, whichever is less | The enhanced rate of pension would be paid monthly for a period of 7 years from the day after the date of death or a period up to which the deceased employee would have attained the age of 67 years if he or she survived, whichever is earlier. The normal rate of pension will resume after the completion of such a period. |
| If governed under Workmen’s Compensation Act 1923 | 1.5 times of the family pension to be paid at a normal rate or 50 per cent of the last drawn payment, whichever is less | 1.5 times of the family pension to be paid at a normal rate or the pension of the employee at the time of retirement or 50 per cent of the pay last drawn, whichever is less |
Model Family Pension Calculation
- Case A (Death while in service) Date of appointment: - April 4, 2000Date of death: - April 1, 2020Age at the time of Death :- 50 yearsTotal service:- 10 yearsLast Pay:- Rs 20,000.00Pension calculation: - 30% of Rs 20,000.00 = Rs 9,000.00The normal rate of family pension will be Rs 9,000.00 per monthThe enhanced rate of the family pension scheme will be2 x Normal rate = 2 x 9,000.00 = Rs 18,000.00 OrHalf of last pay = Rs 20,000.00/2 = Rs 10,000.00 Therefore,The actual family pension will be Rs 10,000 per month as it is the lesser amount. Since the individual died at the age of 50 years, the family pension with enhanced rate will be applicable till 2037, when his age would have been 67 years should he lived.After 2037, the family pension will be given at a normal rate that is Rs 9,000.00 per month.
- Case B (Death after retirement) Date of appointment: - April 4, 1990Date of retirement: - April 1, 2020Age at the time of death:- 60 yearsTotal service:- 30 yearsLast Pay:- Rs 20,000.00Pension calculation: - 30% of Rs 20,000.00 = Rs 6,000.00The normal rate of family pension will be Rs 6,000.00 per month.The enhanced rate of the family pension scheme will be2 x Normal rate = 2 x 6,000.00 = Rs 12,000.00 OrHalf of last pay = Rs 20,000.00/2 = Rs 10,000.00 OrAmount of pension = Rs 10,000 Therefore,The actual family pension at an enhanced rate will be Rs 10,000.00 per month as it is the lesser amount. This amount would be given till 2027, when the person would have been 67 years old if he lived.After 2027, eligible family members will receive a pension at a normal rate of Rs 6000.00 per month.
Will The Pension Amount Suffice
The rules and regulations regarding the disbursement of family pensions are laid out clearly to avoid any confusion. However , it can be seen from the aforementioned example that the family pension amount can be very low for some people depending upon their basic pay and grade pay.Therefore, government employees can consider taking additional pension schemes to protect their families from any possibility of financial crunch in case of any unfortunate event. Reputed institutions like Aditya Birla Capital offer different pension schemes to suit the requirement of both government and private sector employees.Everyone deserves to enjoy their golden years, and an adequate pension can sweeten the experience of a care-free retired life.
DISCLAIMER
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
