Central government employees covered by the National Pension System now have the choice of receiving benefits from the old pension plan or the accumulated pension fund under NPS if they die during employment, according to rule 10 of the CCS (Implementation of NPS) Rules, 2021. This provision, however, is unavailable to the heirs of the deceased government employees. If a Central Government Employee lacks to provide his preference, a benefit under the previous pension system is available as a default choice for the initial 15 years of employment. The benefits under NPS would subsequently be the default choice. In compliance with these guidelines, the default option of the previous pension system is in effect until March 2024, unless a government employee has finished 15 years of employment. The CCS (Implementation of NPS) Rules, 2021 were published in the Gazette on March 30, 2021.
Rule 10 of the CCS (Implementation of NPS) Rules, 2021
According to the memorandum issued by the Ministry of Health and Family Welfare Department of Health and Family Welfare, "In this regard it is stated that as per Rule 10 of CCS (Implementation of NPS) Rules, 2021, Government Servant covered under NPS, at the time of joining service, exercise an option in Form I for availing benefits under the NPS or under the CCS (Pension) Rules, 1972 or the CCS (Extraordinary Pension), Rules, 1939 in case of his death or discharge on invalidation or disability of Government Servant/subscriber during service. Further, those who are already in Government Service and are covered by the NPS shall also exercise such an option as soon as possible after the notification of these rules. They also need to furnish the details of family in Form 2 to the Head of Office alongwith Form 1 for record and onward submission to Central Record Keeping Agency."
The memorandum also says that "In view of the above, all Officers/Officials covered under NPS are requested to furnish their options to Head of Office through their respective Establishment Division (Estt.I, Estt.II, Estt.III and Estt.IV) in the prescribed Form I and Form II latest by 11.06.2021 for record and onward submission to Central Record Keeping Agency."
The DGHS has urged that all officials submit their options to the Head of Office via their appropriate Establishment Division by June 11th. Family pension under CCS(Pension) Rules, 1972 according to decision taken by Government servant or default option, or if Government servant has selected for benefits via NPS, the family will receive benefits from his or her accumulated pension corpus under NPS. The benefits in the event of the in-service demise of Central Government Employees covered by NPS include death gratuity, leave encashment, and benefits from Central Government Employees Group Insurance Scheme (CGEGIS) and Central Government Health Scheme (CGHS) facilities.