NPS Employee Eligible for Family Pension under CCS (Implementation of NPS) Rules 2021

Family Pension Rules for NPS Employees

As per CCS (Implementation of NPS) Rules 2021, the NPS employee eligible for Family Pension under CCS (Pension) Rules,1972 in the event of death during service

NPS Employee Eligible for Family Pension

Subsequent to the Notification for CCS (Implementation of NPS) Rules 2021 issued, the Central Government Servant covered under NPS need to exercise the Option for to choose benefits either from old pension scheme or accumulated pension corpus under NPS in the event of their death

Central Government employees covered under National Pension System have been given option under rule 10 of CCS(Implementation of NPS) Rules, 2021 to choose benefits either from old pension scheme or accumulated pension corpus under NPS in the event of their death. Family of deceased Government employee cannot exercise this option.

In the case, the Central Government employees could not furnish his option in this regard, there is default option of benefit under old pension scheme for first 15 years of service and thereafter, default option would be benefits under NPS.

Must Read This Article : Income Tax Benefit under NPS

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

Family pension in case of death of NPS employee

• Following benefits are available in the event of in-service death of a Central Government Employee covered under NPS:

(i) 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.

CCS (Implementation of NPS) Rules 2021

The provision of Rule 20 of CCS (Implementation of NPS) Rules 2021 about the benefits available under NPS on death of a Government Servant during Service is given below:-

20. Entitlement for family on death of a Subscriber. –
(1) On death of, – (a) a Subscriber, who had exercised option or in whose case the default option under rule 10 is for availing benefits under the Central Civil Services (Pension) Rules, 1972 or Central Civil Services (Extraordinary Pension) Rules, 1939; or

(b) a retired Subscriber, who was in receipt of an Invalid Pension under the Central Civil Services (Pension) Rules, 1972 in terms of rule 16 or a disability pension under the Central Civil Services (Extraordinary Pension) Rules, 1939 in terms of rule 17 ,

further action will be taken by the Head of Office for disbursement of benefits in accordance with the Central Civil Services (Pension) Rules, 1972 :

Provided that if the death is attributable to Government service, further action will be taken by the Head of Office for disbursement of benefits in accordance with the Central Civil Services (Extraordinary Pension) Rules, 1939 subject to fulfillment of all the conditions for grant of benefits under those rules.

Other Benefits under NPS apart from Family Pension

(2) If on death of the Subscriber, benefits are payable to the family under the Central Civil Services (Extraordinary Pension) Rules, 1939 or the Central Civil Services (Pension) Rules, 1972 in accordance with sub-rule (1), the Government contribution and returns thereon in the accumulated pension corpus of the Subscriber shall be transferred to Government account.

The remaining accumulated pension corpus shall be paid in lump sum to the person(s) in whose favour a nomination has been made under the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System) Regulations, 2015. If there is no such nomination or if the nomination made does not subsist, the amount of remaining accumulated pension corpus shall be paid to the legal heir(s).

(3) In the case of death of a Subscriber who had exercised option or in whose case the default option under rule 10 is for availing benefits under the National Pension System, such benefits may be granted in accordance with the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under National Pension System) Regulations, 2015.