Govt sets 10-year family pension term after retired employee’s death

In a significant revision to the pension system, the federal government has introduced new criteria for pensions based on recommendations from the Pay and Pension Commission 2020. 

The finance ministry issued three office memoranda, detailing the new regulations aimed at easing the financial strain caused by the rising pensions bill.

As per the finance ministry’s notification, family pensions will now be provided for a fixed period of 10 years after a retired employee’s death. However, if the pension beneficiary is a special needs child, the pension will continue for life. The duration for special family pensions has been set at 25 years.

The first memorandum focuses on Special Family Pensions, increasing the pension period for martyrs to 25 years. It also stipulates that disabled or special needs children of a deceased pensioner will receive the family pension for their lifetime. 

Additionally, the family pension for armed forces and civil armed forces personnel has been raised by 50%, calculated based on the pensioner’s last drawn amount, applying to all ranks.

In another memorandum, the finance ministry set the family pension duration for minors at 10 years. The reforms also introduced a rule that voluntary retirement before the standard age of superannuation will require at least 25 years of service.