Grandchildren now eligible to receive pension, gratuity after govt employees' death
The amendment comes amid a legal complication in this regard following the recent death of an additional secretary of the Cabinet Division
When additional secretary of Cabinet Division, Sanjida Sobhan, passed away, neither her son nor daughter was eligible for pension benefits in the absence of the husband.
To determine who in her family should receive these benefits, officials held a series of meetings over recent months.
To enable Sobhan's grandchildren to receive the remaining pension and gratuity benefits, the Finance Ministry has revised the definition of "family" in the Pension Rules and Retirement Benefits, now including the deceased employee's grandchildren.
Keep updated, follow The Business Standard's Google news channel
The Ministry of Finance issued a circular today (10 November) in this regard.
Under the revised rules, if a government employee has no surviving spouse or children, the pension benefits will now be extended to the deceased employee's grandchildren, including those identifying as hijra (third gender).
The benefits will be divided in the same proportion that the children would have received if they were alive.
Also, if a government employee has not designated a specific nominee for pension, all family members under the new definition will equally share the gratuity benefits. But, grandchildren over 18 years old will not be eligible.
According to previous regulations, family pensions are available for a minimum of 15 years. Although the Family Pension Rules of 1959 require mandatory nomination, it has not been enforced.
Under the revised rules, the married daughters of a deceased son or daughters whose husbands are alive will not be eligible for gratuity.
