Govt scraps requirement of minimum 7 year continuous service for enhanced family pension

By: |
October 5, 2020 9:30 PM

An EOFP is 50 per cent of personnel's last emoluments and is payable for 10 years from the date of the death of the personnel in service, the ministry said in the statement.

Atal Pension Yojana, APY account, POP, PAN, Aadhaar, savings account, bankThis new move will help those bank account holder who do not use net banking yet want to invest in APY for their retirement needs.

The Defence Ministry has scrapped the requirement of minimum continuous service of seven years for grant of enhanced ordinary family pension (EOFP) to the next of kin of deceased defence personnel, an official statement said Monday.

An EOFP is 50 per cent of personnel’s last emoluments and is payable for 10 years from the date of the death of the personnel in service, the ministry said in the statement.

“The requirement of continuous qualifying service of 7 years (to get EOFP) is done away with effect from October 1, 2019,” it said.

If the service personnel dies after his or her release, retirement, discharge or invalidment, the EOFP is given for seven years from the date of death or up to the time when the personnel would have reached 67 years of age, whichever is earlier, the ministry noted.

Further, the family of armed forces personnel who died within 10 years before October 1, 2019, without completing continuous service of seven years, would be getting the EOFP, it noted.

As per the rules till date, “there is a requirement of continuous qualifying service of 7 years for grant of the EOFP to the next of kin of defence forces personnel”, it stated.

While the EOFP is 50 per cent of last emoluments of the personnel, the ordinary family pension (OFP) is 30 per cent of last emoluments of the personnel.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, 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
1Demand for gold loans to rise as NBFCs, banks tighten underwriting norms for other loans
2Mutual Fund NFO October 2020: Benefit of FMP and ETF rolled into one – Check details
35 tips to build a highly diversified mutual fund portfolio