7th Pay Commission: Central Government Employees can pick NPS or OPS for benefits on death during service

By: |
June 15, 2021 5:03 PM

7th Pay Commission Latest News Today: Under rule 10 of CCS (Implementation of NPS) Rules, 2021, Central Government Employees covered under NPS have been given the option to choose benefits either from old pension scheme or accumulated pension corpus under NPS in the event of their death

7th pay commission latest news today7th Pay Commission latest news today. Representational image/Pixabay

7th Pay Commission Latest News Today: Under rule 10 of CCS (Implementation of NPS) Rules, 2021, Central Government Employees covered under National Pension System have now been given the option to choose benefits either from the old pension scheme or accumulated pension corpus under NPS in the event of their death during service. However, the family of the deceased Government employee cannot exercise this option.

If the Central Government Employee fails to furnish his option, a default option of benefit under the old pension scheme for the first 15 years of service is available. Thereafter, the default option would be the benefits under NPS.

Currently, the default option of the old pension scheme is in vogue till March 2024 in accordance with these rules even if Government Employee has completed 15 years of service.

CCS (Implementation of NPS) Rules, 2021 were notified through a Gazette notification dated 30th March 2021.

ALSO READ | 7th Pay Commission: Central Government Employees’ pension rules simplified amid pandemic – Check details

Rule 10 of the CCS (Implementation of NPS) Rules, 2021

Rule 10 of the CCS (Implementation of NPS) Rules, 2021 says, “Every Government servant covered under the National Pension System shall, at the time of joining Government service, exercise an option in Form 1 for availing benefits under the National Pension System or under the Central Civil Service (Pension) Rules, 1972 or the Central Civil Service (Extraordinary Pension) Rules, 1939 in the event of his death or boarding out on account of disablement or retirement on invalidation.”

According to this rule, Government servants, who are already in Government service and are covered by the National Pension System, shall also exercise such option as soon as possible Form 2.

In an Office Memorandum (O.M.) dated 9th June 2021, the Directorate General of Health Services (DGHS), said employees who are already in Government Service and are covered by the NPS, also need to furnish the details of family in Form 2 to the Head of Office along with Form 1 for record and onward submission to Central Record Keeping Agency.

The DGHS had asked all officials to furnish their options to the Head of Office through their respective Establishment Division by 11th June.

Benefits on in-service death of Central Government Employees covered under NPS

  • Family pension under CCS(Pension) Rules, 1972 as per option exercised by Government servant or default option or in case, Government servant has opted for benefits under NPS, family would get benefits from his accumulated pension wealth under NPS.
  • Death Gratuity
  • Leave Encashment
  • Benefits from CGEGIS
  • CGHS facilities

Salary to Central Government Employees is paid as per recommendations of the 7th Pay Commission.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Group health insurance Vs Individual health insurance: Which one should you opt for first?
2Shivalik Small Finance Bank, Indiagold partner to launch India’s first loan against digital gold
3Realtors expect RBI to maintain status quo on key policy rates