How To Calculate Family Pension, Death Gratuity If A Govt Employee Dies During Penalty?

The Department of Pension & Pensioners' Welfare (DoPPW) has clarified rules for the calculation of pay/emolument for the estimation of family pension and death gratuity when a Government official dies during the duration of a penalty. According to the department clarifications have been sought whether, in such cases, family pension and gratuity would be calculated based on the reduced pay, which the Government servant was actually drawing on the date of death or on the pay which he or she would have drawn if such a penalty had not been imposed on him.

According to the department, it has received references requesting assistance regarding how family pension and death gratuity in respect of a Government servant is to be calculated if a Government servant dies during the currency of a penalty, which reduces the pay of the Government servant for a specified period only, as in such cases the impact of the penalty is limited to the period specified in the order of penalty and the Government servant regains his pay and increments after the period of penalty is over. According to the DoPPW, clarifications have been sought as to whether family pension and gratuity would be computed on the lower pay that the Government official was actually drawing on the day of death or on the pay that he would have earned if such a penalty had not been levied.

In an official memorandum issued on 5th December 2021, the DoPPW has clarified that "It is observed that determination of family pension and death gratuity based on actual pay drawn in case of death during the currency of a penalty referred to in para 3 above would result in a reduced amount of death gratuity and also reduced family pension to the widow/family. This may not be the intention of the disciplinary authority while imposing that penalty. Therefore, in cases where the intention of the disciplinary authority was to restrict the impact of the penalty on the Government servant for a specified period only, determination of family pension and death gratuity on the basis of the reduced pay during the currency of such penalty would result in an unintended hardship to the family of the Government servant, who dies during the currency of such penalty."

According to the department, in cases where a Government servant dies while serving a penalty for which he would have regained the same pay if the penalty had not been foisted, the family pension and death gratuity in respect of such Government servant shall be calculated based on the notional pay to which he or she would have been authorised on the date of death, and such notional pay may be considered.

The department has further clarified that "These instructions shall be applicable with immediate effect and the past cases shall not be re-opened. However, the cases where the death of a Government servant has occurred before the issue of these instructions but family pension and death gratuity has not been determined so far may also be decided in accordance with these instructions. Necessary amendment in the CCS (Pension) Rules, 1972 shall be made separately."

According to Rule 54(14)(c) of the CCS Pension Rules, 1972, the pay for the purpose of family pension is the emoluments as stipulated in Rule 33 of the CCS (Pension) Rules, 1972, or the average emoluments as referred to in Rule 34 of the CCS (Pension) Rules, 1972, if the deceased Government employee's emoluments were drawn during the last ten months of his service other than a penalty. Rule 50(5) has a similar provision for calculating retirement/death gratuity.