7th Pay Commission: Big news for central government employees! Modi Govt raises this ceiling from to Rs 1.25 lakh

7th Pay Commission: For central government employees worried over delay in Dearness Allowance (DA) announcement, the Narendra Modi Government has a piece of good news for them. In a far-reaching reform on family pensions, Union Minister Jitendra Singh on Friday announced that the upper ceiling of the family pension facility has been raised from Rs 45,000 to Rs 1,25,000 per month. The Minister said that the move will bring "ease of living" for the family members of the deceased central government employees and would provide adequate financial security to them.

Dr Jitendra Singh went on to add that the Department of Pension and Pensioners` Welfare (DoPPW) has issued clarification on the amount admissible in case a child is eligible to draw two family pensions after death of his or her parents. Dr Singh said that the amount of both the family pensions will now be restricted to Rs 1,25,000 per month, which is more than two and half times higher than the earlier limit.

CCS pension rule
Citing sub-rule (11) of rule 54 of the Central Civil Services (Pension) Rules 1972, the Minister said in case both wife and husband are government servants and are governed by the provisions of that rule, on their death, the surviving child is eligible for two family pensions in respect of the deceased parents.

Cue from 6th CPC
Earlier instructions laid down that the total amount of two-family pensions in such cases, shall not exceed to Rs 45,000 per month and Rs 27,000 per month, which were determined at the rate of 50 per cent and 30 per cent, respectively taking into account of the highest pay of Rs 90,000 as per 6th CPC recommendations.

What 7th Pay Commission says
Since the highest pay has been revised to Rs 2,50,000 per month after the implementation of 7th CPC recommendations, therefore, the amount prescribed in Rule 54 (11) of CCS (Pension) Rules has also been revised to Rs 1,25,000 per month being 50 per cent of Rs 2,50,000 and Rs 75,000 per month being 30 per cent of Rs 2,50,000.

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Modi Govt's clarification
The clarification has been issued on the references received from various ministry and department. As per the existing rule, if parents are government servants and one of the them dies while in service or after retirement, the family pension in respect of the deceased shall become payable to the surviving spouse and in the event of the death of the spouse, the surviving child shall be granted the two-family pensions in respect of the deceased parents subject to fulfilment of other eligibility conditions. (With inputs from IANS)