FM REPLIED IN RAJYASABHA---FAMILY PENSION SCHEME TO CONTINUE IN THE CASES OF CG EMPLOYEES UNDER NPS
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
Family pension under NPS
350 . SHRI PRABHAT JHA
Will the Minister
of FINANCE be pleased to state:
(a) the details of
cases of family pension sanctioned, so far, under the
New Pension Scheme (NPS) to the families of deceased
Central Government employees;
family pension at the rate of old pension
scheme to these family members of deceased employees has been stopped
after coming into force of the New Pension Scheme;
(c) if not, the fate
of those who have been receiving family pension under NPS at the
rate of old pension scheme;
(d) whether some of
the deceased employees have left behind them only few thousands rupees as
Contributory Pension Fund (CPF) with the National Securities
Depository Limited (NSDL); and
(e) if so, how
Government would pay them family pension from their CPF?
(SHRI P. CHIDAMBARAM )
(a): Central Pension
Accounting Office has informed that as per its records there are 1900 cases of
family pension and 20 cases of disability pensionunder National Pension System
(b) and (c): The
pension of the Government servants (except in the Armed Forces) appointed on or
after 01-01-2004 is regulated by the NPS which is adefined contribution pension system.
Employees appointed in the service of Central Government prior to this date are
not covered by NPS. However, even after the introduction of NPS, the benefit of
family pension is available to the families of the deceased Central Government
employees covered under the NPS. Hence, family pension, at the rate of old pension scheme,
to family members of deceased employees, who were in the service of the Central
Government on or after 01-01-2004, is not denied or affected due to the
implementation of NPS, as per the Office Memorandum (OM) No.
38/41/06/P&PW(A) dated 05-05-2009 of the Department of Pension and
Pensioners Welfare, Ministry of Personnel, Public Grievances and Pensions.
This OM envisages payment of various benefits on death/discharge of a
Government employee after adjustment of the monthly annuitised pension
from the accumulated funds in the NPS account of the employee.
(e): National Securities Depository Limited (NSDL) has informed that
a few deceased employees, who passed away within a short span after joining
NPS, had minimal accumulated pension wealth in their NPS accounts. However, as
stated in reply to parts (b) and (c) above, the family members of the deceased
employees are covered by the family pension.