Family pensions ceiling enhanced from Rs 45,000 to 1.25 lakh per month

By: |
February 12, 2021 6:21 PM

The Minister said that the Department of Pension & Pensioners' Welfare (DoPPW) has issued a clarification on the amount admissible in case a child is eligible to draw 2 family pensions after the death of his/her parents.

EPF, NPS, retirement planning, National Pension System, NPS, EPF, NPS Vs EPF, Budget 2021, government, central government employees, tax benefits of NPS, taxability of NPS PF, PF contribution, tax on PF contribution above Rs 2.5 lakh, Budget 2021 proposal, NPS, NPS Vs PF, PPF,The amount of both the family pensions will now be restricted to Rs 1.25 lakh per month, which is more than two and half times higher than the earlier limit.

The upper ceiling of family pensions has been raised from Rs 45,000 to Rs 1,25,000 per month informed 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.

According to Singh, 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 a clarification on the amount admissible in case a child is eligible to draw 2 family pensions after the death of his/her parents.

“The amount of both the family pensions will now be restricted to Rs 1.25 lakh per month, which is more than two and half times higher than the earlier limit,” Dr Singh added.

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.

However, earlier the total amount of two family pensions in such cases did not exceed Rs 45,000 per month and Rs 27,000 per month which were determined at the rate of 50 per cent and 30 per cent, 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 2.5 lakh 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 per month being 50 per cent of Rs 2.5 lakh and Rs 75,000 per month being 30 per cent of Rs 2.5 lakh.

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 will be payable to the surviving spouse and in the event of the death of the spouse, the surviving child will be granted the two family pensions in respect of the deceased parents subject to fulfilment of other eligibility conditions.

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