Family pensions ceiling enhanced from Rs 45,000 to 1,25,000 per month

Family pensions ceiling enhanced from Rs 45,000 to 1,25,000 per month: Dr Jitendra Singh

Ministry of Personnel, Public Grievances & Pensions

Family pensions ceiling enhanced from Rs 45,000 to 1,25,000 per month: Dr Jitendra Singh

Posted On: 12 FEB 2021 3:32PM by PIB Delhi

Union Minister of State (Independent Charge) Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr.Jitendra Singh said that in a far reaching reform regarding family pensions the upper ceiling has been raised from Rs 45,000 to Rs 1,25,000 per month. He said, the move will bring “Ease of Living” for the family members of the deceased employees and would provide adequate financial security to them. The Minister said that the Department of Pension & Pensioners’ Welfare (DoPPW) has issued clarification on the amount admissible in case a child is eligible to draw two family pensions after death of his /her parents. Dr Jitendra Singh said that the amount of both the family pensions will now be restricted to Rs 1,25,000 per month, which is more than two and half times higher than the earlier limit.

In accordance with sub-rule (11) of rule 54 of the Central Civil Services (Pension) Rules 1972, in case both wife and husband are Government servants and are governed by the provisions of that rule, on their death, the surviving child is eligible for two family pensions in respect of the deceased parents. Earlier instructions laid down that the total amount of two family pensions in such cases, shall not exceed to Rs 45,000/- per month and Rs 27,000/- per month which were determined at the rate of 50% and 30%, respectively taking into account of the highest pay of Rs. 90,000/- as per 6th CPC recommendations.

Since the highest pay has been revised to Rs. 2,50,000 per month after the implementation of 7th CPC recommendations, therefore the amount prescribed in Rule 54(11) of CCS (Pension) Rules has also been revised to Rs 1,25,000/- per month being 50% of Rs.2,50,000/- and Rs 75000/- per month being 30% of Rs. 2,50,000/-.

The above clarification has been issued on the references received from various Ministry /Department. As per the existing rule, if parents are Government servants and one of the them dies while in service or after retirement, the family pension in respect of the deceased shall become payable to the surviving spouse and in the event of the death of the spouse, the surviving child shall be granted the two family pensions in respect of the deceased parents subject to fulfilment of other eligibility conditions.

Source: PIB