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    Benefits Available in The Case of Death of A Central Government Employee Covered Under National Pension System During Service

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    Ratnesh Rajanya
    Central government employees covered under the National Pension System have the option to choose between benefits from the old pension scheme or their accumulated pension corpus under NPS if they die during service. [1] If the employee did not choose an option, the default is benefits under the old pension scheme for the first 15 years, and NPS benefits after. [2] Benefits available in case of death include family pension, death gratuity, leave encashment, CGEGIS benefits, and CGHS facilities. [3] The process for benefits depends on whether the employee chose the old pension scheme or NPS.

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    Benefits Available in The Case of Death of A Central Government Employee Covered Under National Pension System During Service

    Uploaded by

    Ratnesh Rajanya
    72 views2 pages
    Central government employees covered under the National Pension System have the option to choose between benefits from the old pension scheme or their accumulated pension corpus under NPS if they die during service. [1] If the employee did not choose an option, the default is benefits under the old pension scheme for the first 15 years, and NPS benefits after. [2] Benefits available in case of death include family pension, death gratuity, leave encashment, CGEGIS benefits, and CGHS facilities. [3] The process for benefits depends on whether the employee chose the old pension scheme or NPS.

    Original Description:

    Benefits to be given to Central Government employees family in case of death

    Original Title

    NPS_TerminalBenefits_InServiceDeath

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    Central government employees covered under the National Pension System have the option to choose between benefits from the old pension scheme or their accumulated pension corpus under NPS if they die during service. [1] If the employee did not choose an option, the default is benefits under the old pension scheme for the first 15 years, and NPS benefits after. [2] Benefits available in case of death include family pension, death gratuity, leave encashment, CGEGIS benefits, and CGHS facilities. [3] The process for benefits depends on whether the employee chose the old pension scheme or NPS.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    72 views2 pages

    Benefits Available in The Case of Death of A Central Government Employee Covered Under National Pension System During Service

    Uploaded by

    Ratnesh Rajanya
    Central government employees covered under the National Pension System have the option to choose between benefits from the old pension scheme or their accumulated pension corpus under NPS if they die during service. [1] If the employee did not choose an option, the default is benefits under the old pension scheme for the first 15 years, and NPS benefits after. [2] Benefits available in case of death include family pension, death gratuity, leave encashment, CGEGIS benefits, and CGHS facilities. [3] The process for benefits depends on whether the employee chose the old pension scheme or NPS.

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    © All Rights Reserved
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    of 2

    Benefits available in the case of death of a Central Government

    Employee covered under National Pension System during service

    • 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.
    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.

    • 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.

    (ii) Death Gratuity


    (iii) Leave Encashment
    (iv) Benefits from CGEGIS,
    (v) CGHS facilities

    • As per rule 20 of CCS (Implementation of NPS) Rules, 2021, if the Government


    servant had opted for benefits under old pension scheme (or if no option was
    exercised, then default option applicable in his case) the concerned office would
    take action to sanction family pension to eligible member(s) of the family of the
    deceased Government servant, as done for Government servants covered under
    old pension scheme (i.e. as applicable to those joined service before 01.01.2004).

    1|Page
    • Simultaneously, they would start process to close PRAN under NPS of the
    Government servant and Government contribution (and return thereon) would
    be transferred into the Government account. Remaining amount would be paid
    to the nominee or legal heir as per PFRDA regulations in lump sum.

    • However, those Government servants who had opted for benefits from NPS in
    the event of their death or if no option exercised, then in whose case default
    option is benefits under NPS, concerned office would take action to close PRAN
    under NPS of the deceased Government servant and grant benefits of lump sum
    (maximum of 20% of accumulated pension wealth) and annuity from the
    remaining pension wealth to eligible member from annuity service provider
    registered with PFRDA in accordance with PFRDA (Exits and Withdrawals under
    NPS) Regulations, 2015.

    • Other benefits viz. Death gratuity, leave encashment, CGEGIS and CGHS would
    be available in both the cases.

    --- End ---

    2|Page

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