Family Pension Scheme: Benefits of Family Pension Funds 2023

By Okbima 03 Aug 2023 121


The family pension refers to the money given to the government employee's family when the individual dies during their service. In general, the Government offers a family pension to the widower or widow. But, in their absence, it directly goes to the offspring of the government employee. Employees who started working before January 1, 1964, come under the Family Pension Plan for Central Government Employees.

What is a Family Pension Plan?

A family pension is a type of financial assistance given to the surviving family members of a dead government employee or pensioner. After the employee or pensioner passes away, a recurring payment is provided to the eligible family members, usually the surviving spouse and dependent children. The family pension assists in giving them a steady income, preserving their financial security and covering their essential needs. The amount of the family pension is often calculated as a percentage of the pension that the employee or pensioner was receiving at the time of their passing. It acts as a form of social security to help the remaining family members in trying times.


When Does a Family Pension Expire?

If a government worker was already collecting a pension, their spouse or minor children could do that as well if the employee:

1. Died during service either on or after January 1, 1964, or

2. Retired/died before December 31, 1963, or

3. At or after January 1, 1964

Suppose a 20-year-old government employee contributed a pension during his service. Then, if anything unfortunate incident happened, their family would have been qualified for a family pension scheme. 

The pension payment would be determined according to a proportion of their most recent basic wage. The pension plan, for instance, would provide a family pension equal to 50% of the last drew basic pay if it was Rs. 50,000 each month. The monthly family pension for the entire family would be Rs. 25,000.

The couple's spouse would receive the family pension for life. In the event of the spouse's passing, the dependent children would get a family pension until they reach a set age or become self-sustaining per the pension plan's criteria.


Who is eligible for a Family Pension? 

Family pension is typically provided to the family members of a deceased government employee or pensioner. Eligibility criteria can vary depending on the specific rules and regulations of the pension scheme or organization. Generally, the following individuals may be eligible for family pension:

Dependent Children

A family pension may be received by the dependent offspring of a deceased government worker or pensioner, including adopted children. It is provided until the recipient reaches the age of 25 and before they begin earning a monthly salary that exceeds Rs. 9,000 plus Dearness Allowance (DA).


The unmarried, divorced, or widowed daughter of a recently deceased public servant may be eligible for a family pension up to her subsequent marriage or for the rest of her life. However, her family's pension will be terminated if her monthly income exceeds Rs. 9,000 + DA.


The surviving spouse's pension will be provided to the deceased government worker's entirely dependent parents as of January 1, 1998, if they are the only unmarried or otherwise qualified survivors. In certain situations, the pension will be paid first to the mother. Then, the deceased's father becomes the next qualified recipient in the mother's absence.

Disability-Related Dependents

The family pension may be paid for the duration of the kid's life if a government worker's child has any disorder, physical impairment, or impairment that prohibits them from making a living after becoming 25 years old, as long as specific requirements are met.

Siblings Who Are Reliant

The deceased government worker or pensioner's dependent siblings might be entitled to a family pension if they had been totally reliant on them for financial assistance at the time of the individual's death.


Eligibility Criteria for Family Pension 

The beneficiary of the family pension plan upon your death must be designated by you. Laws specify the requirements for family pensions for spouses and children.

A Spouse's Eligibility

Your surviving spouse may get the family pension if the following criteria are met:

1. Until their death or the date of their remarriage, whichever occurs first, a widow or widower is entitled to the family pension.

2. If a widow sans children marries again and her other income is less than the required family pension and the relevant dearness relief, she continues earning the family pension.

Children's Eligibility

If any of your surviving offspring meet the requirements, the family pension may be paid to them:

1. The children's family pension will be paid in the children's birth order. The younger child will not be entitled to the family pension until the child next to him or her has lost eligibility for the family pension.

2. Equal amounts of the family stipend will be given to identical twins.

3. Before turning 25, getting married, or beginning to work, an unmarried son is eligible to receive a family pension.

4. If both parents qualify for a family pension, the survivor will be given both benefits.

5. Obtaining a family pension for a single deceased individual has no bearing on one's ability to receive a second family pension.

6. The family of a retiree who has passed away does not include an adopted kid of the pensioner's spouse.

Eligibility for Parents

Under the following circumstances, the family pension scheme may be given to your surviving parents:

1. If the parents were entirely reliant on the government employee and the employee passed away without leaving behind a widow or a qualified kid, the family pension would be paid to the parents.

2. The family pension intended for the parents will be paid to the mother of the dead government employee if she is still living. The pension will go to the deceased government employee's father if she is also deceased.

3. Parents who qualify will receive a lifetime family pension.

4. The parents' full names are dependents may be included on the PPO given to the retired government employee if the partner is not qualified for a family pension and no other applicant is eligible for the benefit.


What is the New Rule for Family Pension Plans?

The family pension plan's operation is straightforward. The specifics are as follows:

1. The family pension is computed as a portion of the pension benefit that the deceased worker would have earned in the event of retirement.

2. The proportion changes according to the family members who qualify for the pension.

3. 50% of the overall pension payment is applicable for spouses.

4. If the dead employee had children, the spouse's pension is increased by 15% for every kid, up to a maximum of two, until the last child is reached.

5. The children of a deceased employee are entitled to 60% of the pension, divided evenly among them if there is no surviving spouse.

6. In the event that the deceased employee did not have children or a spouse, the surviving parents are each entitled to receive 75% of the pension, split equally between them.

7. According to the Income Tax Act, the family pension is taxable, so the deceased employee's heirs must submit an income tax return for the benefit.

8. 9000 rupees per month is the minimum monthly pension.

9. 50% of government employees' highest income in India is the pension's maximum upper limit.

10. Pension is paid until the death of the receiver.


What are the Family Pension Rules After Death of Pensioner?

Following the guidelines established by the Department of Pension and Pensioners Welfare (DoPPW), family members of the dead pensioner may apply for the family pension.

You should do the following:

1. In addition to the pensioner's Pension Payment Order (PPO), obtain their death certificate.

2. Bring these papers to the financial institution where your pension was paid.

3. The bank will utilize the above mentioned documentation to begin the pension if you or your partner share a joint account with the pensioner in a single bank branch.

4. Aadhaar, PAN, and joint photos are just a few of the KYC documents the bank may want. For the purpose of proving the claimant(s)' identification, several documents are necessary.

5. You can get half the PPO back after the bank confirms the documentation and updates the pensioner's date of death.

6. After that, the bank will start crediting your account with the pension after notifying the Central Pension Processing Center (CPPC).


How Do A Family Retirement And An Ordinary Pension Differ From One Another?

The fact that a pension plan offers benefits to an employee when they retire is one key distinction between a pension plan and a spouse's pension. Contrarily, a family pension scheme distributes the pensioner's death-related income from retirement to the pensioner's family.


How Much Might A Family Pension Be Worth In Total?

In the Government of India, the highest pension can be obtained at 50% of the highest monthly salary, or Rs. 1,25,000. Until the recipient passes away, the pension sum will be provided.


Upon Reaching 75 Years Old, Does The Family Pension Increase?

Pensioners will receive increased benefits as they get older: 5% more at age 65, 10% more at age 70, 15% more at age 75, and 20% more at age 80.



In order to give the surviving family members of a deceased government employee stability and financial security, a family pension scheme is essential. The social security system's vital pension program aids those who survive in maintaining their level of living. You can always take's help to learn more about these schemes.

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