The Union Minister of State (Independent Charge), Dr.Jitendra Singh, raised the upper ceiling of the family pension from Rs 45.000 to Rs 1,25000 a month. He said that the move would offer "ease of living" for the deceased employees' family members and provide them with sufficient financial security.
The Minister said that clarity has been provided by the Department of Pension & Pensioners' Welfare (DoPPW) on the amount admissible in the event that a child is eligible for two family pensions after the death of his/her parents.
Earlier guidance issued that in such cases, the combined value of two family pensions should not exceed Rs 45,000/- per month.
Both family pensions are now increased to Rs 1,25,000 a month, which is more than two and a half times the previous cap.
If both the wife and the husband are employees of the government and are subject to the requirements of that law, the surviving child will be entitled to two family pensions in respect of the deceased parents upon their death.
Since the highest pay was revised to Rs. 2,50,000 per month after the 7th CPC guidelines were introduced, the amount recommended was also revised to Rs 1,25,000/- 50% of Rs 2,50,000/- per month and Rs 75000/- 30% of Rs 2,50,000/- per month.
In compliance with the current law, if parents are government employees and one of them dies in service or after retirement, the family pension for the deceased is payable to the surviving spouse and, in the case of the death of the surviving spouse, the two family pensions will be granted to the surviving child on fulfillment of other conditions, the department said.