7th Pay Commission: Big News! Central government changed rules for the payment, know new payment rule

7th Pay Commission Latest News: Now it has been decided that the ex-gratia lump sum compensation will be made to a member or members of the family in whose favour a nomination is made by the Government servant during service, the Office Memorandum says.

The central government has changed the rules for the payment of ex-gratia compensation to the families of the public servants who lay down their lives in the line of duty. Families of Central Civil Government employees are entitled to receive this ex-gratia lump sum amount of compensation settlement which has been changed from time to time.

“DoPPW issued OM dt. 30.09.2021 regarding provision for nominations for payment of amount of Ex-Gratia lump sum compensation to the families of Central Government servants who die in the performance of bona fide official,” Department of Pension & Pensioners’ Welfare (DoPPW) has tweeted.

7th Pay Commission New Payment Rule

1. The existing instructions do not specify the member of the family to whom such ex-gratia lump sum compensation is payable. The compensation is presently provided to the member of the family who is eligible for extraordinary family pension under the CCS (Extraordinary Pension) Rules, 1939, according to the Office Memorandum of DoPPW under the Ministry of Personnel Public Grievances and Pensions dated September 30, 2021.
2. Now it has been decided that the ex-gratia lump sum compensation will be made to a member or members of the family in whose favour a nomination is made by the Government servant during service, the Office Memorandum says.
3. “On death of a Government servant, payment of other lump-sum amounts, such as death gratuity, GPF balance and CGEGIS amount, is made in accordance with the nominations made by the Government servant during service. Accordingly, it has been decided that, on death of a Government servant in the performance of bona fide duty also, payment of ex-gratia lump sum compensation may be made to a member or members of the family in whose favour a nomination is made by the Government servant during service. Family for this purpose shall have the same meaning as in the case of gratuity and it shall include the members of family as mentioned in sub-rule (6) of Rule 50 of the CCS (Pension) Rules, 1972.” the Ministry of Finance (Department of Expenditure) has announced on September 30, 2021.
4. Meanwhile, the Common Nomination Form in Form 1 appended to CCS (Pension) Rules 1972, has been amended to include the nomination in respect of the ex-gratia lump sum payment, according to details provided by the Office Memorandum.
5. “Accordingly, the nomination in respect of ex-gratia lump sum payment shall also be made in this Common Nomination Form. The nomination for ex-gratia lump sum payment shall be subject to the provisions as applicable in the case of gratuity under Rule 53 of the CCS (Pension) Rules, 1972,” the Office Memorandum reads.
6. Since, the ex-gratia lump sum payment is payable to the family only, no nomination will be made in favour of a person who is not a member of the family, even where the government servant has no family, according to the Office Memorandum.
7. If no nomination has been made by the government servant, the ex-gratia lump sum compensation will be shared equally by all eligible family members, as in case of Gratuity, in accordance with Rule 51 of the CCS (Pension) Rules, the Office Memorandum states.

DoPPW is the Nodal Department to formulate policy on pension and retirement benefits of the central government Civil Employees.