New Enhanced Rate of Family Pension Rules! How Long Will You Get Extra Pension? Government Clears Confusion

Family Pension: It is crucial for government employees, teachers, and pensioners in West Bengal to be aware of the rules related to pensions. Currently, West Bengal is the only state where the Old Pension Scheme (OPS) is still active, while the New Pension Scheme (NPS) has been implemented in the rest of the country. A significant aspect of pension rules is the Family Pension, especially the regulations concerning its Enhanced Rate. Recently, the government has issued an important clarification on this matter, which will clear up a lot of confusion.

Enhanced Rate of Family Pension: What is the Core Rule?

Typically, the pension received by the family of a pensioner after their demise is called Family Pension. This pension has two rates – one is the Enhanced Rate and the other is the Normal or Reduced Rate. According to the rules, after the death of a pensioner, their family receives the pension at an enhanced rate for a specific period. This enhanced rate is equal to the last pension amount drawn by the deceased pensioner.

The period for receiving this enhanced rate is determined by two conditions:

• For a period of seven years from the date of the pensioner’s death.
• Or, up to the date on which the deceased government servant or pensioner would have attained the age of 67 years, had they survived.

As per government regulations, the family will receive the pension at the enhanced rate for the period that is whichever is earlier of these two conditions. Once this specific period is over, the family pension amount is reduced to the normal or reduced rate.

Will the Rule Change if Retirement Age is Above 60?

For many government positions, such as professors or doctors, the retirement age is over 60 years (e.g., 62 or 65). This raised a question: if an employee’s retirement age is more than 60, will the rule for receiving the enhanced rate of family pension remain the same for their family?

The government has clearly stated that regardless of the employee’s retirement age, the rule for calculating the enhanced rate of family pension will remain unchanged. This means the principle of seven years or up to the age of 67 (whichever is earlier) will be applicable in all cases.

For example, let’s say an employee retired at the age of 62 and passed away shortly after.

• According to the first condition, their family can receive the enhanced pension for 7 years from the date of death. In this case, the employee’s age would have been 62 + 7 = 69 years.
• According to the second condition, the family will receive the enhanced pension until the employee would have completed 67 years of age.

Since the 67-year mark comes before the 69-year mark (“whichever is earlier”), the family will receive the pension at the enhanced rate only until the date the deceased would have turned 67. After that, the pension amount will be reduced to the normal rate. This clarification is extremely important for many pensioners and their families.