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Family pensions ceiling enhanced from Rs 45,000 to 1,25,000 per month
New Delhi, February 13, 2021
The upper ceiling in family pensions has been raised from Rs 45,000 to Rs 1,25,000 per month, Minister of State for Personnel, Public Grievances & Pensions Jitendra Singh said on Friday.
The Minister said the move would bring “Ease of Living” for the family members of the deceased employees and provide them with adequate financial security.
The Department of Pension & Pensioners' Welfare (DoPPW) has also issued a clarification on the amount admissible in case a child is eligible to draw two family pensions after the 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.
The sub-rule (11) of rule 54 of the Central Civil Services (Pension) Rules 1972, states that 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.
The earlier instructions laid down that the total amount of two family pensions in such cases, shall not exceed 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 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 75,000 per month, being 30% of Rs 2,50,000.
The clarification was issued on the references received from various Ministries and Departments. As per the existing rule, if parents are Government servants and one of 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.