Family Pension Rules Guide: Pension After Death?

Family Pension Rules Guide: Pension After Death?

Family pension is a form of financial support provided by government bodies, public sector organizations, and certain private institutions to the family members of a deceased pensioner. It serves as a safety net for the dependents of retired employees, ensuring that their livelihood is not significantly disrupted after the death of the pensioner. Understanding the rules surrounding family pensions is crucial for both pensioners and their families. In this article, we will break down the family pension rules and explain what happens to the pension after the death of the pensioner.

What is Family Pension?

Family pension is a recurring benefit paid to the spouse, children, or other dependent family members of a deceased pensioner. This pension is usually a percentage of the pension the deceased was receiving at the time of their death, and it is designed to provide financial security to the deceased’s family.

The specific family pension rules vary depending on the organization, but most government agencies and public-sector units offer a standardized scheme for their pensioners. The family pension rules define who is eligible to receive the pension, how much is payable, and the duration of the payment, among other aspects.

Family Pension Rules in India

Rule 50-Family Pension 1964

Eligibility for Family Pension (1964)

The Family Pension 1964 is admissible to the family of a deceased government servant under the following conditions:

1. Death After Completion of One Year of Service
   If the government servant dies after completing one year of continuous service, the family is entitled to a family pension.
2. Death Before Completion of One Year of Service
   If the government servant dies before completing one year of continuous service, but was medically examined and declared fit for government service immediately prior to appointment, the family is still entitled to a family pension.
3. Death After Retirement
   If the government servant dies after retirement and was in receipt of a pension on the date of death, the family will be entitled to a family pension.

Amount of Family pension

Normal Rate– the amount of family pension shall be determined at a uniform rate of 30%of pay subject to a minimum 9000/- rupees per month and a maximum of 75000/- rupees per month on basic pay.

Enhanced  Rate-

1. Where a Government servant dies while in service, the rate of family pension payable to the family shall be equal to 50% of the pay and the amount so admissible shall be payable from the date following the date of death of the Government servant for a period of 10 years
2. In the event of death of a Government servant after retirement, the family pension shall be payable for a period of 7 years or for a period on which retired deceased govt servant would have attained the age of 67 years.
3. After the expiry of the initial periodthe family pension payable will revert to the normal rates.
4. Additional Family Pension for Senior Pensioners: Family pensioners are eligible for an additional family pension upon reaching the age of 80 years and above.

According to FR 54-B(2), if a government servant dies while under suspension and before the conclusion of disciplinary or judicial proceedings, the term “pay” in such cases will refer to the emoluments that the official would have been entitled to if they had not been suspended. This provision is applicable for the calculation of family pension.

To Whom Family Pension 1964 payable

1. Eligibility: Family pension is payable to only one member at a time, with specific provisions for multiple widows or twin children.
2. Wife /Husband as case may of Government servant
3. Unmarried son who has not attained the age of 25 years  (for disable child no age limit)
4. Unmarried daughters/Widowed daughters/Divorces daughters who have not attained the age of 25 years.
5. Parents who were wholly dependent on the Government servant

Duration of Family Pension

1. Childless Widow: For life or until independent income reaches ₹9,000 per month (including dearness relief), even after remarriage.
2. Widow/Widower with Children: Up to their death or remarriage, whichever is earlier.
3. Unmarried Children:
   1. Sons: Until age 25, marriage, or income of ₹9,000 or more.
   1. Daughters: Beyond 25 years until marriage or earning ₹9,000 or more, after other eligible family members become ineligible.
   1. Disabled Children: Eligible for life or until marriage/income meets the minimum family pension requirement.
4. Widowed/Divorced Daughters: For life until remarriage or earning ₹9,000 or more; they are not required to return to their parental home.
5. Dependent Parents: Until death or their combined earnings exceed ₹9,000 (including dearness relief). Wherever family pension is admissible to parents, the mother will receive the pension first. After her death, the father will be entitled to the pension.

Regulation of Family Pension in the Case of Twin Children

In the case of eligible twin children (whether of the same sex or different sexes), the family pension is to be paid in equal shares. If one child ceases to be eligible, their share will revert to the other child. When both children cease to be eligible, the family pension will be payable to the next eligible child or children.

Admissibility of Family Pension to Disabled Son(s) or Daughter(s)

Family pension is admissible to a disabled son or daughter who is physically or mentally incapacitated and unable to earn a living, even after reaching the age of 25 years. However, the following conditions apply:

1. Disability Criteria: The disability must be permanent and render the child incapable of earning a livelihood. A certificate from a Civil Surgeon is required to confirm the condition.
2. Eligibility and Payment:
   1. The family pension is payable to the child in order of birth, until the last eligible child reaches the age of 25.
   1. In cases with more than one disabled child, the pension is paid to them in the order of their birth.
   1. In the case of twins, the pension is paid in equal shares.
   1. If the child has not attained the age of majority, the pension is paid through a guardian. After reaching majority, the pension is paid directly to the child. For mentally disabled children, the pension continues through the nominated guardian even after they turn 18.
3. The grant of family pension to disabled children beyond the prescribed age-limit is subject to the following conditions:
   1. Marriage: A daughter or son shall become ineligible for family pension from the date she or he gets married.
   1. Earnings: The family pension to a disabled son or daughter shall be stopped if he or she starts earning a sum of ₹9,000 or more per month, including dearness relief, from employment in Government, private sector, self-employment, or any other source.
   1. Widowed Disabled Daughter: A widowed disabled daughter would be eligible for family pension for life from the date of her husband’s death, subject to the conditions mentioned above.

Admissibility of Family Pension to Dependent Disabled Siblings of Government Servants/Pensioners

Dependent disabled siblings (brothers or sisters) of Central Government servants or pensioners are eligible for family pension under the same criteria as children with disabilities. They must meet the following conditions:

1. Disability Criteria: The sibling must be physically or mentally disabled (including mentally retarded) and unable to earn a living. A disability certificate issued by a competent medical authority is required.
2. Income Limit: The total income of the disabled sibling from all sources, other than the family pension, must be below the ordinary family pension rate (30% of the last pay drawn by the deceased employee/pensioner, plus Dearness Relief).
3. Eligibility: The family pension will be payable for life, subject to the conditions outlined above.

Family Pension for Children from Void or Voidable Marriages

Family pension is admissible to children born from a void or voidable marriage, as per Section 16 of the Hindu Marriage Act, 1955. This section grants legitimacy to children of such marriages, regardless of whether the marriage is declared void. However, these children are entitled to family pension only when their turn comes, in accordance with Rule 54(8). They will not receive family pension as long as the legally wedded wife is the recipient of the pension.

Family Pension Rules for Government Servants

When both husband and wife are government servants, the family pension does not prevent either from receiving family pension in addition to their pay or pension. If the surviving spouse subsequently passes away, the child or children of the deceased parents will be eligible for both family pensions, subject to the following limits:

1. Enhanced Rate for Eligible Children: If the surviving child or children qualify for two family pensions at the enhanced rate, the combined amount of both pensions shall be capped at ₹1,25,000 per month.
2. Combination of Enhanced and Normal Rates: If one of the family pensions ceases to be payable at the enhanced rate and instead a normal rate pension is payable, the total amount of both pensions shall also be limited to ₹1,25,000 per month.
3. Normal Rate for Both Pensions: If both family pensions are payable at the normal rate, the total amount will be restricted to ₹75,000 per month.

This ensures that the total family pension received does not exceed the specified limits.

Multiple Widows and Children

1. Surviving Multiple Widows: If a government servant is survived by more than one widow, the family pension will be distributed equally among them. The minimum pension of ₹9,000 applies to the original family pension and not to the divided shares.
2. Death of a Widow: Upon the death of a widow, her share of the pension will be payable to her eligible children. If she leaves no eligible children, her share will be distributed equally among the surviving widows, or in full to the only remaining widow.
3. Children from Previous Marriages: If a government servant is survived by a widow and has an eligible child from a previous wife (who is deceased or divorced), that child will receive the share of the pension that their mother would have received had she been alive or not divorced at the time of the government servant’s death.

Restrictions for Hindu Government Servants

Family pension is not admissible to more than one widow of a Hindu government servant, as such a marriage is not valid under custom. In these cases, the second wife will not be entitled to the family pension as a legally wedded spouse.

When the family pension is divided among multiple beneficiaries, any fractional amount in each share should be rounded up to the next whole rupee. However, the total of all the shares must not exceed the maximum allowable family pension amount.

Official’s whereabout not Known

          Payment of retirement gratuity and family pension to the family, in case an officials whereabouts are not know. The family pension and gratuity shall be payable after 06 months from the date of FIR lodge.

Question & Answer

Question 1:Who is eligible to receive the Family Pension under the Family Pension 1964 rules?

Answer: The Family Pension is admissible to the family of a deceased government servant who dies after completing one year of continuous service, before completing one year if medically fit prior to appointment, or after retirement while receiving a pension.

Question 2: What is the normal and enhanced rate of Family Pension?

Answer:

• Normal Rate: 30% of pay, with a minimum of ₹9,000 and a maximum of ₹75,000 per month.
• Enhanced Rate: 50% of pay for a government servant who dies while in service, payable for 10 years; for a retired servant, it is payable for 7 years or until the age of 67.

Question 3: Who can receive the Family Pension?

Answer: Family pension is payable to:

1. The spouse of the government servant.
2. Unmarried sons under 25 years (or disabled children with no age limit).
3. Unmarried, widowed, or divorced daughters under 25 years.
4. Dependent parents.

Question 4: What are the durations of Family Pension for different beneficiaries?

Answer:

• Childless Widow: For life or until independent income exceeds ₹9,000/month.
• Widow/Widower with Children: Until death or remarriage.
• Unmarried Children: Until age 25 or marriage/income of ₹9,000.
• Disabled Children: For life.
• Widowed/Divorced Daughters: For life until remarriage/income of ₹9,000.
• Dependent Parents: Until death or their combined income exceeds ₹9,000.

Question 5: What happens if both spouses are government servants?

Answer: If both are government servants, the family pension does not prevent either from receiving their pay or pension. Upon the death of one spouse, the children can receive both family pensions, capped at ₹1,25,000 per month if both pensions are at the enhanced rate.

Question 6: What is the procedure if a government servant’s whereabouts are unknown?

Answer: Family pension and gratuity can be claimed after 6 months from the date of the FIR lodged regarding the missing person.

Question 7: How is Family Pension handled in judicial separation cases?

Answer: If a judicially separated spouse survives without children, they receive the family pension. If children are present, the pension is payable to the spouse if they are the guardian; otherwise, it goes to the actual guardian. If the separation was due to adultery, no pension is payable to the guilty spouse.

Question 8: What are the rules regarding multiple widows?

Answer: If a government servant has multiple widows, the family pension is divided equally among them. Upon the death of a widow, her share goes to her eligible children or is divided among surviving widows.

Question 9: What happens if the first eligible family member is charged with the murder of the government servant?

Answer: The payment of family pension to the charged individual will be suspended until the conclusion of criminal proceedings. If acquitted, pension is payable from the date of the government servant’s death; if convicted, it goes to other eligible family members.

Question 10: What is the impact of commutation of pension on Family Pension?

Answer: The commutation of pension does not affect the family pension amount, which is calculated based on the pay the government servant was receiving before death or retirement.

Question 11: How is Family Pension affected when a government servant goes missing?

Answer: Family pension will be payable from the day after the last leave or pay date, or from the date of the police report, whichever is later. Claims must be submitted to the Head of Office with relevant documentation.

Question 12: What exclusions apply to the provisions of Family Pension?

Answer: The provisions do not apply to individuals missing while under investigation for fraud, embezzlement, or other crimes.

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