Pension Funds main objective is to provide benefits to employees after they retire. When a person retires, only one third of the amount is given to the employee at the time of retirement, while he will receive remaining two thirds during his life time in installments. In the event of death the fund money is released to nominee or family members.
Here are few things you should know about government pension fund.
1. A government servant is now entitled to commute for a lumpsum payment up to 40% of his/her pension.
2. In the case of a missing Government servant/pensioner, family pension can be paid after a period of six months from the date of lodging an FIR with the police authorities.
3. A judicially separated spouse of the deceased Government servant with children can get family pension after the children cease to be eligible till his/her death/remarriage, whichever is earlier.
4. Dependent parents and widowed/divorced daughter/unmarried daughter are now included in the definition of family for the purpose of consideration for grant of family pension.
5. Family pension is also admissible to a posthumous child and also to children from the void or the voidable marriage as per the relevant provisions in the rules.
6. In the event of death of a family pensioner, the arrears of family pension is automatically payable to the eligible member of the family next in line.
7. However, Succession certificate for payment of the arrears is required only in such cases where there is no family member eligible to receive family pension after the death of the family pensioner.