Check out the benefits available in the death case of a Central Govt Employee covered under NPS during service
Central Government employees covered under NPS have been given the option under rule 10 of CCS(Implementation of NPS) Rules, 2021 to choose benefits either from the old pension scheme or accumulated pension corpus under NPS in the event of their death.
New Delhi: Central Government employees covered under National Pension System have been given the option under rule 10 of CCS(Implementation of NPS) Rules, 2021 to choose benefits either from the old pension scheme or accumulated pension corpus under NPS in the event of their death. The family of the deceased Government employees cannot exercise this option.
In the case, the Central Government employees could not furnish his option in this regard, there is a default option of benefit under the old pension scheme for the first 15 years of service and thereafter, the default option would be benefited under NPS.
At present default option of the 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 the old pension scheme (or if no option was exercised, then default option applicable in his case) the concerned officials would take action to sanction family pension to the eligible member(s) of the family of the deceased Government servant, as done for Government servants covered under an old pension scheme (i.e. as applicable to that joined service before 01.01.2004).
Simultaneously, they would start the process to close PRAN under NPS of the Government servant and Government contribution (and return thereon) would be transferred into the Government account. The remaining amount would be paid to the nominee or legal heir as per PFRDA regulations in a 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 benefits under NPS, concerning office, would take action to close PRAN under NPS of the deceased Government servant and grant benefits of a lump sum (maximum of 20% of accumulated pension wealth) and annuity from the remaining pension wealth to the eligible member from annuity service provider registered with PFRDA in accordance with PFRDA (Exits and Withdrawals under NPS) Regulations, 2015.
The Other benefits viz. Death gratuity, leave encashment, CGEGIS and CGHS would be available in both cases.
Moreover, If Government Employees covered under CCS(Pension) Rules, 1972 then the Terminal Benefits is available to the Family of a Deceased Government Employee, the benefits will be Family Pension, Death Gratuity, Accumulation under General Provident Fund, Leave encashment, CGEGIS, CGHS or FMA
If Government Employees covered under NPS then benefits will be, Benefit from accumulated pension wealth under NPS or family pension under CCS(Pension) Rules, 1972 as per option or default option, Death Gratuity, Leave Encashment, CGEGIS, CGHS
For the following there are some necessary Forms to be filled by the claimant for benefits and forms links are given below:
(i) Family pension – claim in Form 14 of CCS(Pension) Rules
(ii) Death Gratuity- claim in Form 12 of CCS(Pension) Rules
(iii) Leave Encashment, CGEGIS, GPF- No form or application is required
(iv) CGHS- Form prescribed by Ministry of Health and Family Welfare
https://pensionersportal.gov.in/Forms/Applicationforms/FORM14.pdf
https://pensionersportal.gov.in/Forms/Applicationforms/FORM12.pdf
Further details can be accessed from the official website https://doppw.gov.in/
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