Central authorities workers are a serious a part of the Nationwide Pension System (NPS). NPS is a voluntary retirement financial savings scheme that enables subscribers to make an outlined contribution in the direction of deliberate financial savings for post-retirement. PFRDA is the nodal company for the implementation and monitoring of NPS. Not too long ago, the central authorities issued a clarification with regard to NPS fee to members of the family or nominees in case of the dying of a authorities servant. In an workplace memorandum dated October 28, the Division of Pension and Pensioner’s Welfare underneath the Ministry of Personnel, Public Grievances and Pensions highlighted the provisions of Rule 20 of the Central Civil Companies (Implementation of NPS) RUles, 2021 that gives for the entitlement of members of the family on the dying of a central authorities worker.

“If on the dying of the Subscriber, advantages are payable to the household underneath the Central Civil Companies (Extraordinary Pension) Guidelines of the Central Civil Companies (Pension) Guidelines, the Authorities contribution and return thereon within the accrued pension corpus of the Subscriber shall be transferred to Authorities account. The remaining accrued pension corpus shall be paid in a lump sum to the particular person(s) in whose favour a nomination has been made underneath the Pension Fund Regulatory and Improvement Authority (Exits and Withdrawals underneath Nationwide Pension System) Rules, 2015,” mentioned the memo.

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It added that if there is no such thing as a nomination or if the nomination made doesn’t subsist, the quantity will likely be paid to the authorized inheritor of the subscriber. The division additional mentioned that in case of the dying of a subscriber who had exercised the choice for availing advantages underneath the NPS, such advantages will likely be granted as per the PFRDA Rules 2015.

“Within the occasion of dying of Authorities workers coated underneath NPS throughout service, and in whose case advantages from accrued pension corpus underneath NPS have been availed, a member of the family of a such deceased authorities worker would even be eligible for dying gratuity,” mentioned the division detailing the charges for a similar.


The division mentioned that the utmost quantity of dying gratuity payable shall in no case exceed Rs twenty lakh.





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