Friday, July 3, 2009

Family pension to the families of officials who were appointed after 1.1.2004 and died while in service

Government of India, Ministry of Personnel Public Grievances and Pensions, Department of Pension and Pensioners Welfare, Memorandum No 38/41/06/P&PW(A) dated 5.5.2009

Sub : Additional Relief on death/disability of Government servants covered by the new Defined Contribution Pension System (NPS)

The undersigned is directed to say that the pension of the government servants appointed on or after 1.1.2004 is regulated by the new Defined Contribution Pension System (Known as New Pension Scheme), notified by the Ministry of Finance (Department of Economic Affairs) vide their O.M. No 5/7/2003-ECB 2 PR dated 22.12.2003.

2. On introduction of the New Pension Scheme, among others, the Central Civil Services (Pension) Rules 1972, and the Central Civil Services (Extraordinary Pension) Rules were amended on 30.12.2003. Under the amended Rules, the benefits of Invalid Pension/Disability Pension and Family Pension/Etraordinary Family Pension/Liberalized Pensionary Award relief are not available to the Government servants appointed on or after 1.1.2004.

3. Ministry of Finance (Department of Economic Affairs) has subsequently clarified that the New Pensin Scheme is a replacement for only pension under normal circumstances and family pension in case of death of employees after retirement.

4. A High Level Task Force (HLTF) constituted by the Government has recommended certain additional benefits that can be provided on death or discharge on invalidation/disability of a Government servant covered by the New Pension Scheme. It is likely to take some time before the Rules regulating these benefits under the New Pension System are put in place.

5. Meanwhile, considering the hardships being faced by the employees appointed on or after 1.1.2004, who are discharged on invalidation/disablement and by the families of such employees who have died during service since 1.1.2004, the President is pleased to extend the following benefits to Central Civil Government Servants covered by the New Pensin Scheme, on provisional basis till furtgher orders:

(I) Retirement from Government service on invalidation not attributable to Government duty :

(i) Invalid pension calculated in terms of Rule 38 and Rule 49 of the Central Civil Services (Pension) Rules, 1972.

(ii) Retirement gratuity calculated in terms of Rule 50 of the Central Civil Services (Pension) Rules, 1972.

(II) Death in service non attributable to Government duty:

(i) Family Pensin (including enhanced family pension) computed in terms of Rule 54 of the Central Civil services (Pension) Rules, 1972.

(ii) Death Gratuity computed in terms of Rule 50 of the Central Civil Services (Pension) Rules, 1972.

(III) Discharge from Government service due to disease/injury attributable to Government Duty

(i) Disability Pensin computed in terms of the Central Civil Services (Extraordinary Pension) Rules.

(ii) Retirement gratuity computed in terms of the Central Civil Services (Extraordinary Pension) Rules read with Rule 50 of the Central Civil Services (Pensin) Rules, 1972.

(IV) Death in service attributable to Government duty:

(i) Extraordinary Family Pensin computed in terms of Central Civil Services (Extraordinary Pension) rules and Scheme for Liberalised Pensionary Awards.

(ii) Death gratuity computed in terms of Rule 50 of the Central Civil Services (Pension) Rules, 1972

The employee/his family will also be paid Dearness Pension/Dearness Relief admissible from time to time in addtion to the above benefits, on provisional basis.

6. The above provisional payments will be adjusted against the payments to be made in accordance with the Rules framed on the recommendations of the HLTF and recoveries, if any, will be made from the future payments to be made on the basis of those rules.

7. The recommendations of the HLTF envisage payment of various benefits on death/discharge of a Government employee after adjustment of the monthly annuitised pension from the accumulted funds in the NPS Account of the employee. Therefore, no payment of monthly-annuitised pensin will be made to the employee/family of the employee during the period he/she is in receipt of the provisional basis mentioned in para 5 above.

8. In case where, on discharge/death of the employee, the amount of accumulated funds in teh NPS account have been paid to the employee/family of the employee, the amount of monthly-annuitised pension from the date of discharge/death will be worked out in accordance with the rules/regulations to be notified by the Department of Financial Services/PFRDA and the same will be adjusted against the payment of benefits/relief after the notified rules in this respect are in place.

9. These instructions will be applicable to those Government servants who joined Government service on or after 1.1.2004 and will take effect from the same date i.e 1.1.2004

10. This order issues with the concurrence of Ministry of Finace (Department of Expenditure) vide thier UO No 127/EV/2009 dated 13.4.2009

Source : Department of Pension and Pensioners Welfare Memo dated 5.5.2009

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