Administrative Instructions for Uniform rate of 30% of family pension under LIC(Employees) Pension Rules, 1995

OS Department, Central Office, 4th Floor, 'Yogakshema', J.B.Marg, Mumbai-400 021

Tel: 22021572, Fax: 22045607, E-mail: co_os@licindia.com

Ref: CO/OS/Uniform family pension

Date : 21.09.2023

Re: Administrative Instructions for Uniform rate of 30% of family pension under

In terms of Gezette Notification No 662(E) dated 11th September 2023, the Central Government has amended Rule 39, sub rule (1) , clause ( c ) of LIC(Employees) pension Rules, 1995.

In view of the above mentioned notification, the following changes in family pension shall take place with effect from 11.09.2023.

"The Family of the deceased employee shall be entitled to family pension, the amount of which shall be determined at a uniform rate of thirty percent of pay plus thirty percent of allowances which are counted for making contribution to Provident fund but not for dearness allowances and in no case the family pension shall be less than the amount of minimum pension determined by the Board from time to time."

The said amendment is applicable to :

• i)
  Family pensioners/Child pensioners/Dependant parents who are presently in receipt of family pension at a rate of 15% or 20%
• ii)
  Family of the employee who dies while in service on or after 11.09.2023.
• iii)
  Family of the employee who dies on or after 11.09.2023 after superannuation/voluntary retirement from service and was on the date of death in receipt of a pension or compassionate allowance.

For the purpose of this amendment 'pay' is defined in Rule 2 (o) of LIC (Employees) Pension Rules,1995 which will include:

• i)
  The basic pay including the stagnation increments if any, and
• ii)
  All allowances counted for the purpose of making contribution to the Provident Fund and for the payment of dearness allowance. and
• iii)
  Fixed personal allowance not exceeding the last increment in the scale of pay, if any.

Further it is mentioned in the notification that the amount of family pension shall not be less than the amount of minimum family pension determined by the Board from time to time. The amount of minimum family pension is given below :

Retirement/Death	Scale of pay	Minimu m	Scale of pay	Minimu m	Scale of pay	Minimum
Before 01.11.1993	Upto 1500/-	375	1501-/to 3000/-	450	Above 3000/-	600
01.11.1993 to 31.07.1997	Upto 2870/-	720	2871/- to 5740/-	860	Above 5740/-	1150
01.08.1997 to 31.07.2002	Upto 4360/-	1100	4361/- to 8700/-	1310	Above 8700/-	1740
01.08.2002 to 31.07.2007	Upto 5840/-	1480	5841/-to 11640/-	1760	Above 11640/-	2330
01.08.2007 to 31.07.2012	Upto 7390/-	1880	7391/- to 14720/-	2230	Above 14720/-	2950
01.08.2012 to 31.07.2017	Upto 11820/-	3010	11821/- to 23540/-	3570	Above 23540/-	4720
From 01.08.2017	Upto 15950/-	4070	15951/- to 31760/-	4820	Above 31760/-	6370

It is observed that where family pension was disbursed @20%, the protection of minimum pension after revision of rate of family pension @30% is to be checked thoroughly. An illustration of the same is given below :

Example:

During wage revision period 01.08.1997 to 31.07.2002, the minimum family pension determined for scale of pay ranging from Rs.4361/- to Rs.8700/- @20% is Rs.1310/-

If the last drawn pay is Rs.4363/- then family pension @20% is Rs.873/- which is less than the minimum pension. Hence the family pension will be fixed at Rs.1310/-

However after revision of rate of family pension to 30%, the family pension arrived at Rs.1308.90. In such cases, the minimum family pension is to be protected.

Amount of minimum family pension arrived according to the judgement of Hon'ble Delhi High Court needs proper scrutiny after revision. If the revised family pension @ 30% of last drawn pay is more than the minimum family pension for the corresponding wage revision period, then the family pension is to be fixed accordingly.

Example :

Name : Mr A

Date of Retirement : 24.07.1986

Date of Death : 01.01.2001

Last drawn pay : Rs 2185/-

Minimum Family Pension : Rs.450/- ( AIACPI 600, DR : 0.67%)

According to Appendix V of LIC of India (Employees) pension Rules, 1995, the rate of family pension is 20%

Family pension Rs. 2185/-*20%=Rs 437/-

This is less than the minimum pension determined.

Hence the family was eligible for minimum family pension of Rs.450/-

As per order dated 22.04.2017 of of Hon'ble Delhi High Court, the minimum family pension in this case was revised to Rs.1760/- with AIACPI at 2328 points and rate of Dearness relief is 0.18%

Family Pension paid prior to the date of notification as on 31.08.2023 is

After notification dated 11.09.2023 for uniform rate @ 30% the calculation of family pension will be as under :

Kindly note the following points:

• a)
  Appendix V of LIC of India (Employees) Pension Rules, 1995 shall now stand omitted.
• b)
  The notification is not applicable to employees who are governed by LIC of India ( Regular Part­time Employees) Pension Scheme,1999 and ex-gratia pension beneficiaries.
• c)
  From 11th September 2023 the basic family pension is to be paid @30%. For 10 days @ old rate ie 15/20/30% as applicable and for 20 days @30% for the month of September 2023.
• d)
  Cases of enhanced family pension needs to be checked with due diligence. Enhanced family pension is to be restricted to 50% in all the cases.
• e)
  In old cases where Appendix 3 is applicable, family pension is to be decided on the basis of last drawn pay.

Taking into consideration the above points, we have already requested COSP Hyderabad to release suitable program to ensure correct and timely release of Family pension at the revised rates.

Executive Director (OS)