The Department of Pension and Pensioners’ Welfare (DoPPW) has issued a new clarification under the Central Civil Services (Pension) Rules, 2021, defining how pension and family pension are calculated. According to the update, an employee’s pension will now be determined based on the rules in force on their final working day whether it’s the date of retirement, resignation, discharge, or death. This move eliminates ambiguity, ensuring a fair and uniform pension process for all government employees. The final date of service will now serve as the reference point for computing pension amounts and related benefits, including family pension entitlement.

The clarification also covers unique situations like employees retiring while on leave or suspension. Even if an employee is not actively working, their last day on sanctioned leave or suspension will be considered continuous service, ensuring no gap in pension eligibility. This means employees on medical leave, suspension, or similar statuses will still have their retirement date counted as part of their official service record, preventing unnecessary disputes or benefit loss.

New Family Pension Rule Brings More Transparency

For employees who pass away without a surviving spouse or children, their parents are now entitled to receive an enhanced family pension for life. However, both parents must submit individual life certificates every year to maintain accuracy in pension records. This reform aims to eliminate fraudulent claims and ensure that rightful dependents receive their dues without delay. The DoPPW emphasized that these changes are designed to increase transparency, reduce confusion, and ensure pensions are processed faster and more fairly. By clarifying these points, the government hopes to create a more accountable and reliable pension system for millions of employees and their families across India.