Home / Life Insurance / Articles / Retirement Planning / Everything You Need to Know About Family Pension
Everything You Need to Know About Family Pension
Team AckoAug 23, 2024
In India, family pension is an essential social security measure provided by the government to support the families of deceased employees. It serves as a financial lifeline for dependents who have lost their breadwinner.
This comprehensive guide will walk you through everything you need to know about family pension in India, including eligibility criteria, benefits, the application process, and frequently asked questions. So, let's dive in and understand this crucial support system.
Contents
What is Family Pension?
Family pension is a financial provision offered by the Indian government to provide a stable income source for the family members of deceased employees. It ensures that the dependents can continue to meet their financial needs even after the loss of the primary earner.
It serves as a replacement for the salary or pension that the employee would have received during their lifetime. The amount is disbursed to the spouse, children, or dependent parents of the deceased employee, depending on the eligibility criteria.
Eligibility criteria for Family Pension
To avail family pension in India, certain eligibility criteria must be met. These criteria vary based on factors such as the employee's service period, cause of death, and marital status. The primary conditions for eligibility are as follows:
The deceased employee should have served in a government department.
The employee's death should have occurred while in service or after retirement.
The employee should have contributed to the pension scheme.
The dependent family members should not be receiving any other pension.
The spouse, children, or dependent parents can be eligible for family pension.
Types of Family Pension
Family pension in India can be classified into various types, depending on the circumstances and the relationship between the deceased employee and the claimant. The main types of family pension are:
| Type | Availability | Paid to |
|---|---|---|
| Ordinary Family Pension | Applicable when the deceased employee had a minimum specified service period. | Paid to the spouse or dependent children. |
| Special Family Pension | Applicable in cases of death resulting from accidents, homicides, or acts of violence. | Paid to the spouse or dependent children. |
| Enhanced Family Pension | Applicable in cases where the deceased employee was eligible for higher pension due to specific circumstances. | Paid to the spouse or dependent children. |
| Liberalised Family Pension | Applicable in cases of death due to acts of terrorism or during an enemy attack. | Paid to the spouse or dependent children. |
| Dependent Parents' Pension | Applicable when the deceased employee was unmarried or had no dependent spouse or children. | Paid to the dependent parents of the deceased employee. |
Calculation of Family Pension
The calculation of family pension depends on various factors, including the deceased employee's last drawn pay, length of service, and the type of family pension. Here's a simplified overview of how family pension is calculated.
| Type of Family Pension | Calculation |
|---|---|
| Ordinary Family Pension | 30% of the last drawn pay of the deceased employee is granted as family pension. If the employee had completed 7 years of qualifying service, it can be enhanced to 50% of the last drawn pay. |
| Special, Enhanced, and Liberalised Family Pension | 60% of the last drawn pay is granted as family pension |
| Dependent Parents' Pension | 75% of the last drawn pay is granted as a family pension if both parents are alive 60% of the last drawn pay is granted if only one parent is alive. |
Please note that the information provided is a simplified overview, and the actual calculations may consider additional factors as per the specific rules and regulations governing the pension system in India.
Documents required for Family Pension
To apply for family pension in India, certain documents need to be submitted. The exact list of documents may vary depending on the circumstances and the concerned government department. However, some common documents include:
Death certificate of the deceased employee.
Proof of relationship with the deceased employee (marriage certificate, birth certificates, etc.).
Last pay certificate of the deceased employee.
Bank account details of the claimant.
Any other specific documents requested by the department.
Application process for Family Pension
The application process for family pension typically involves the following steps:
| Step number | Action | Process |
|---|---|---|
| 1 | Obtaining the Application Form | Visit the concerned government department's website or office to collect the application form. Ensure that you have all the necessary documents mentioned in the form. |
| 2 | Filling the Application Form | Fill in the required details accurately in the application form. Attach the supporting documents as specified. |
| 3 | Submission of Application | Submit the completed application form along with the necessary documents to the designated department. |
| 4 | Verification and Processing | The department verifies the application and documents submitted. The processing time may vary depending on the department and workload. |
| 5 | Disbursement of Family Pension | Once the application is approved, the family pension is disbursed to the eligible beneficiaries. The payment is usually made through the designated bank account of the claimant. |
Wrapping up
Family pension in India is a crucial financial support system for the families of deceased government employees. It ensures that the dependents can maintain a decent standard of living even after the loss of the primary breadwinner. In this article, we covered the various aspects of family pension, including eligibility criteria, types, calculation, application process, and frequently asked questions. By understanding the intricacies of family pension, you can make informed decisions and secure the financial future of your loved ones. Additionally, considering options like term insurance can further enhance your family's financial security, providing comprehensive coverage alongside the benefits of a family pension.
Frequently Asked Questions (FAQs)
Here are some common questions about family pension.
How long does it take to receive a family pension in India?
The processing time for family pension in India varies depending on factors such as the concerned government department's efficiency, verification requirements, and workload. Generally, it can take anywhere from a few weeks to several months to start receiving family pension after the application is submitted and approved.
Can a widow remarry and still receive family pension?
Yes, a widow can remarry and still continue to receive family pension. However, certain conditions may apply, such as relinquishing her right to receive pension from her deceased husband's employer or providing an undertaking to the concerned department.
Is family pension taxable in India?
Yes, family pension is taxable in India. It is treated as income and falls under the head of "Income from Other Sources." The amount of taxable family pension is calculated after deducting a standard deduction of 1/3rd of the pension received or Rs. 15,000, whichever is less.
Can children receive family pension if the deceased employee had no spouse?
Yes, dependent children are eligible to receive family pension even if the deceased employee had no spouse. In such cases, the children become the primary beneficiaries of the family pension.
Can family pension be transferred to a different bank account?
Yes, family pension can be transferred to a different bank account. To initiate the transfer, the claimant needs to submit a written request to the concerned government department, providing details of the new bank account.
Can family pension be revised or increased over time?
Yes, family pension can be revised or increased over time. The government periodically reviews and revises pension amounts based on inflation and other factors. The revision is applicable to existing pensioners as well.
Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
Recent
Articles
Netherlands Work Visa: All You Need to Know for Indian Applicants
TeamAcko Nov 13, 2024
Delhi Set to Roll Out WhatsApp-based System for Seamless Challan Payments
TeamAcko Nov 8, 2024
Seychelles Visa for Indians: A Guide
TeamAcko Oct 25, 2024
The UK Youth Mobility Visa: A Summary
TeamAcko Oct 25, 2024
Australian Golden Visa Scheme: All that You Wanted to Know
TeamAcko Oct 25, 2024
All Articles
Want to post any comments?
ACKO Term Life insurance reimagined
ARN:L0072|*T&Cs Apply
Check life insurance
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
Acko Group Companies:
Download our ACKO app now!
Products
Company
Support
Car Insurance
Bike Insurance
Health Insurance
- Health Insurance
- Health Insurance Plans
- 10 Lakhs Health Insurance
- 50 Lakhs Health Insurance
- 1 Crore Health Insurance
- Health Insurance Plans For Family
- Individual Health Insurance
- Cashless Health Insurance
- Women's Health Insurance
- Health Insurance For Parents
- Health Insurance For Children
- Health Insurance For Senior Citizens
- Health Insurance Premium Calculator
- Waiting period in health insurance
- Health Insurance Portability
- Super Top Up Health Insurance
Group Health Insurance
Travel Insurance
CIN: U74110KA2016PTC120161
The use of images and brands are only for the purpose of indication and illustration.