How family pension, death gratuity will be calculated if govt employee dies during penalty period

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The Department of Pension & Pensioners’ Welfare, via an office memorandum dated December 9, 2021, has spelt out rules related to the calculation of family pension and death gratuity where a government pensioner dies during currency of a penalty. The memorandum has clarified that the family pension and death gratuity will be determined on the basis of the actual pay to which he/she will be entitled had the penalty not been imposed.

Penalty refers to the period where the pay of a government employee is reduced with regards to the disciplinary action taken against him/her. The pay is reduced for a specific time period and the impact is limited to the period specified in the order of the penalty.

As per the office memorandum, “It is observed that determination of family pension and death gratuity based on actual pay drawn in case of death during the currency of a penalty referred to in para 3 above would result in reduced amount of death gratuity and also reduced family pension to the widow/family. This may not be the intention of the disciplinary authority while imposing that penalty. Therefore, in cases where the intention of the disciplinary authority was to restrict the impact of the penalty on the Government servant for a specified period only, determination of family pension and death gratuity on the basis of the reduced pay during the currency of such penalty would result in an unintended hardship to the family of the Government servant, who dies

during the currency of such penalty.”

“It has, accordingly, been decided that in cases where a Government servant dies during the currency of a penalty on expiry of which he would have regained the same pay which he would have drawn if the penalty had not been imposed on him, the family pension and death gratuity in respect of such Government servant shall be determined based on the notional pay which he would have been entitled to on the date of death and such notional pay may be treated as emoluments for this purpose,” said the office memorandum.

For example, hypothetically, let us say the penalty is imposed for four months, say from October to January and pay of the government employee becomes Rs 10,000. However, before the penalty period, i.e., October, the pay was Rs 15,000. Now if the government employee died in December, then the family pension and death gratuity for the family members of the government employee will be calculated on the basis of Rs 15,000 and not on Rs 10,000 (penalty pay).

As per Central Civil Services (CCS) Pension Rules, 1972, for the purpose of family pension, emoluments is calculated either on the basis of basic pay received by the government employee immediately before his/her retirement or date of death or on the basis of average emoluments drawn by government servant during the last 10 months of his service.

The issued order is applicable with immediate effect and past cases shall not be re-opened. However, the cases where the death of a government servant has occurred before the issue of these instructions but family pension and death gratuity has not been determined so far may also be decided in accordance with these instructions. Necessary amendments in the CCS (Pension) Rules, 1972 shall be made separately.



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