Family Pension Update – Government Employees will have to Submit this Certificate Every Year

Family Pension Update: Last year, the Central Government made significant changes to the rules related to family pension. The Department of Personnel, Pension and Pensioners’ Welfare (DoPPW) has clarified that the parents of a deceased government employee will now be required to submit a separate life certificate every year to continue receiving the enhanced family pension. The department has found several cases where pension payments at the enhanced rate continued in the names of both parents even after the death of one of the parents. This new system has been implemented to prevent such irregularities and maintain accurate records. The government has not yet made any changes to the system. It cannot be said that these rules will remain in effect.

When is the increased family pension received?

According to the new CCS (EOP) Rules, 2023, if a government employee dies and is survived by neither a spouse nor any eligible children, their dependent parents are granted a lifelong family pension. If both parents are alive, they receive 75 percent of the employee’s last salary as a pension. However, if only one parent is alive, this amount is reduced to 60 percent.

Life Certificate Required Every Year

The department has now made it mandatory for both parents to submit their life certificates every year. This will ensure that the pension is being paid to the correct person and that no wrongful payment is made after someone’s death.

What is a Life Certificate?

A life certificate is a document that certifies that the pensioner is alive. Typically, the pensioner must submit this certificate to the bank or related institution between October and November every year. Senior pensioners aged 80 years or above are now eligible to submit life certificates starting October 1st.

Benefits will also be available upon death after retirement

The department has also clarified that if a government employee dies after retirement, their family will receive a family pension at an increased rate. This payment will continue for seven years or until the employee potentially reaches the age of 67, whichever is earlier. This provision applies to all government employees, including doctors who retire at the age of 65. This government move is considered an important initiative towards making the pension system more transparent, accountable, and streamlined.