Family Pension Rules After Death of Pensioner: Things You Need to Know

A family  pension is a financial support system provided to the dependents of a deceased pensioner. It ensures that their family members do not face financial troubles after their death. Family pensions are offered by government bodies, military organisations, and other formal employment sectors where pension schemes exist. Dependents must be familiar with family pension rules after the death of the pensioner to claim the benefits to which they are entitled.

Who provides Family Pension?

1. Central and state governments: Family pensions are provided under various schemes for government employees, like the Central Civil Services (Pension) Rules, 1972.
2. Defence services: Family pension is given to dependents of defence personnel under specific military pension rules.
3. Public Sector Undertakings (PSUs): Many PSUs have their own pension schemes that include family pension benefits.
4. Other employers: Some private companies also offer pension plans that include a family pension provision.

Eligibility Criteria for Family Pension

Eligibility for a family pension depends on the claimant’s relationship with the deceased pensioner. The government  has set strict guidelines to determine who qualifies for the pension. The family pension rules after death of pensioner vary based on employment type and government regulations, so claimants must carefully check their eligibility.

1. Spouse Eligibility

• Widow/Widower: The primary beneficiary of the family pension is usually the spouse. The widow or widower can receive a pension after the pensioner’s death.
• Remarriage rules: The pension of the deceased pensioner may stop if their widow or widower is remarried unless the couple is  financially dependent. In certain cases (for widows of military personnel), the family pension continues even after remarriage.

2. Children’s Eligibility

• Unmarried sons and daughters: They are eligible until they are 25 years old or become financially independent, earning a monthly income of over ₹9000.
• Married children: They are not eligible to receive any amount of family pension.
• Divorced or widowed daughters: They are eligible if they are financially dependent on the deceased pensioner until they are remarried or start earning a monthly income of over ₹9000.
• Disabled children: Children with disabilities receive a lifelong family pension even after they turn 25 years old if they are dependent on the deceased pensioner.

3. Dependent Parents

• If the deceased pensioner has no surviving spouse or children, dependent parents are eligible for the pension.
• To qualify for a family pension, the parents must prove financial dependency on the deceased pensioner.

4. Other Dependents

• In some cases, dependent siblings or grandchildren can receive a family pension if the pensioner has no direct dependents.

Calculation of Family Pension

The calculation of family pension is based on the last basic pay of the deceased pensioner. A pension can be classified as ordinary, enhanced or special. The percentage of the pension can depend on this classification. Following the family pension rules after the pensioner's death ensures  that dependents receive the correct pension amount.

1. Ordinary Family Pension Calculation

• Ordinary family pension is 30% of the last drawn basic pay of the pensioner before they retire or die.
• Example: If a pensioner’s last basic pay was ₹50000, the family pension would be ₹15000 per month (30% of ₹50,000).
• The minimum pension amount is ₹9000 per month, while the maximum is subject to government rules.

2. Enhanced Family Pension Calculation

• Enhanced family pension is given to dependents when a pensioner dies during service or within seven years of retirement.
• It is 50% of the last drawn basic pay for a specific period (usually 7 years or until the pensioner would have turned 67, whichever is earlier).
• Example: If the pensioner’s last pay was ₹60000, the enhanced pension would be ₹30000 per month for the first seven years.

3. Special family pension calculation

• Special family pensions apply to dependents of personnel who die while on duty.
• It is usually higher than the ordinary pension and varies based on service rules.

Application Process

Dependents can claim a family pension by submitting an application along with supporting documents.

1. Required Documents

• Death certificate of the pensioner
• Pension Payment Order (PPO) copy
• Aadhaar card and PAN card of both the pensioner and claimant
• Marriage certificate (for spouse applicants)
• Birth certificates (for children applicants)
• Bank account details of the claimant
• Disability certificate (if applicable)
• Legal heir certificate (in cases where multiple dependents claim pension)

2. Steps to apply for family pension

• Visit the pension office: The applicant has to contact the pension disbursing authority in their region or visit https://coa.delhi.gov.in/pao/pension-forms to apply.
• Submit the application: The required documents must be attached to the pension application form.
• Verification process: The pension office will verify the documents and approve the claim.
• Approval and disbursement: If approved, the pension starts within a few months.

Tax Implications

Family pension is taxable under the Income Tax Act, but with certain exemptions. Taxpayers must comply with the family pension rules after death of pensioner to avoid tax-related issues.

1. Tax rate

• The family pension is classified under "Income from Other Sources."
• No TDS (Tax Deducted at Source) is deducted from family pensions.

2. Exemptions

• A standard deduction of ₹15,000 or one-third of the total pension (whichever is lower) is applicable.
• If the family pension is received by multiple dependents, the tax is divided accordingly.

Recent Updates and Amendments

The government regularly updates pension rules to improve benefits for dependents. Staying informed about the family pension rules after death of pensioner ensures that beneficiaries receive timely updates.

2022 Amendment: Increased the pension eligibility age limit for children with disabilities.

2023 Notification: Introduced digital submission of pension claims through online portals.

2024 Policy Update: Expanded benefits for re-employed government pensioners’ families.

Family pensions serve as a lifeline for dependents after a pensioner's death, offering financial stability in difficult times. Understanding eligibility criteria, calculation methods, application processes, tax implications, and recent amendments ensures that beneficiaries can access their rightful pension without unnecessary obstacles.

The family pension rules after a pensioner's death  provide a structured framework to ensure dependents receive due financial support. Families can secure their future with minimal complications by staying informed and proactive.