Family pension is the monthly pension paid to the eligible family member of a deceased Central Government employee or pensioner. It is governed by Rule 50 of the CCS (Pension) Rules, 2021 (which consolidated the earlier 1972 Rules with subsequent amendments). Family pension applies whether the employee was on OPS, NPS (with the family option exercised), or UPS. The eligibility, rates, and order of payment are the subject of frequent operational confusion; this article sets out the position with the relevant OMs.
Quick reference
| Rate | Computation | Period |
|---|---|---|
| Normal rate | 30% of last drawn basic pay (subject to minimum Rs. 9,000 + DR) | For life (subject to category rules) |
| Enhanced rate | 50% of last drawn basic pay (or amount of pension, whichever is less) | 10 years from death-in-service; or 7 years from retirement / age 67, whichever earlier (death-after-retirement) |
| Minimum family pension | Rs. 9,000 per month + DR | — |
| Maximum family pension (normal rate) | 30% of highest pay in Government | — |
Categories of family for family pension
Category I (priority claimants)
- Widow or widower (until remarriage or death).
- Children: son until 25 years of age or starting earning livelihood (whichever earlier); unmarried daughter until 25 or earning, whichever earlier; widowed or divorced daughter for life if she is dependent and not earning above the threshold; child suffering from any specified disability for life.
Category II
Parents who were wholly dependent on the Government servant when the latter was alive — but only after Category I claimants are exhausted (no widow, no eligible children).
The order of payment
Family pension is paid to one eligible family member at a time. The order is:
- Widow / widower.
- Children, in order of seniority (eldest eligible son or daughter, until eligibility ceases; then next).
- Disabled or dependent children — paid even after the widow/widower if the disabled child outlives the spouse.
- Parents — only if Category I is exhausted.
Where both parents are alive, the family pension is divided equally between them. On the death of one parent, the share goes to the survivor.
Special categories
Divorced daughter
By DoPPW OM No. 1/16/2018-P&PW(E), dated 19 July 2017 (with subsequent clarifications), a divorced daughter is eligible for family pension if the divorce was finalised before the death of the parent (Government servant). She continues to receive family pension until she remarries or starts earning above the prescribed threshold. The earlier requirement that the divorce must have been finalised in the lifetime of the parent has been clarified to mean the divorce decree must exist before the parent’s death; this was further softened in 2017.
Disabled child
A child suffering from any disorder or disability, including mental retardation, that renders them unable to earn a livelihood, is eligible for life-long family pension. The disability must be certified by a duly constituted Medical Board. Such a child has priority even after the eligibility of other children ceases. There is no age limit.
Two simultaneous family pensions
Under DoPPW OM dated 21 July 2017, a person can receive two family pensions if both spouses were Central Government employees and both have died — for example, a son receiving family pension on account of both parents (deceased mother and deceased father), or a widow receiving family pension on account of her deceased husband and her deceased son who was also in Central Government service. The aggregate is subject to the maximum-pension ceiling.
Worked example
Government employee dies in service after 8 years. Last drawn basic Rs. 50,000.
- Enhanced rate (death in service, period 10 years from death): 50% of 50,000 = Rs. 25,000 per month.
- Plus DR at 60% = Rs. 15,000.
- Family pension (year 1 to year 10): Rs. 40,000 per month (subject to DR revisions).
- Year 11 onwards: Normal rate. 30% of 50,000 = Rs. 15,000 + DR.
Death after retirement: pensioner aged 65 dies after retiring at 60. Family pension: enhanced rate for 7 years from retirement or until age 67 of deceased, whichever is earlier. In this case, age 67 is reached 2 years after death; thereafter normal rate.
How to claim
- Form 18 (or its current equivalent) for family pension claim, submitted to the head of office where the deceased served (or to the Pension Disbursing Authority where the pensioner was drawing pension).
- Documents: death certificate, marriage certificate (where applicable), age proof of children, disability certificate (where applicable), divorce decree (where applicable), bank account proof, identity documents.
- Bhavishya portal (now integrated with PFMS) is the primary online channel for first-time family pension claims for Central Government deaths.
Frequently asked questions
Does the widow lose family pension on remarriage?
Until the OM dated 8 May 2017, family pension to a widow ceased on remarriage. After this OM, widow / widower of a Government servant who died in service is entitled to continue receiving family pension even after remarriage, provided the widow/widower is the legally wedded spouse of the deceased and the marriage subsists at the time of death. For widow/widower of pensioner who dies after retirement, the pre-2017 rule continues — family pension stops on remarriage.
Are NPS subscriber’s family eligible for family pension under CCS Rules?
Yes. The DoPPW OM dated 30 March 2021 gave families of NPS subscribers who die in service the option to choose family pension under CCS (Pension) Rules instead of NPS corpus withdrawal. Most families choose this for the lifetime stream. Once chosen, the corpus reverts to the Government.
Is family pension taxable?
Yes, but treated as “income from other sources”, not as salary. A standard deduction of 1/3rd or Rs. 25,000 (whichever is less) is available under section 57(iia). For family pension received from the Government on account of death due to specified circumstances (e.g. death in operations or disability), full exemption may be available under section 10(19).
Sources
- CCS (Pension) Rules, 2021, Rule 50.
- DoPPW OM No. 1/16/2018-P&PW(E), dated 19 July 2017 (Divorced daughter).
- DoPPW OM No. 1/4/2017-P&PW(F), dated 21 July 2017 (Two family pensions).
- DoPPW OM dated 8 May 2017 (Continuation of family pension on remarriage of widow of death-in-service employee).
- DoPPW OM dated 30 March 2021 (NPS family option).
- Income Tax Act, 1961, sections 57(iia), 10(19).