Personal Finance

UPS Family Pension Calculation: How much money will the family get in case of death of the pensioner, know here

August 31, 2024

Employee Pension Fund: What are the pension rules for family members after the death of the employee?

UPS family Pension- Unified Pension Scheme guarantees pension to the employees. It also has a provision for family pension which is not there in NPS.

The central government has brought a Unified Pension Scheme (UPS) for central employees apart from Old Pension Scheme (OPS) and NPS. Under UPS, central employees are guaranteed pension after completing a minimum period of 25 years of continuous service. The employee will be given pension by adding 50 percent of the average basic salary + dearness relief of the basic salary received during the 12 months of service before retirement. Along with this, a provision has been made to give assured family pension to the family of the pensioner in the Unified Pension Scheme.

In NPS, the amount of pension to be given to the family on the death of the employee was not fixed. At the same time, in the event of death of an employee in UPS while in service, the family will get 60 percent as pension. This means that 60 percent of the pension that was being given to any employee before his death will be given to the family of the pensioner as family pension. But the question arises how much pension will be given? Today we will tell you about this in detail.

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Family pension on pension of Rs 40,000

If a central employee is getting a pension of Rs 40,000 per month after retirement and he dies, then under the Unified Pension Scheme (UPS), his family will be given 60% i.e. Rs 24,000 monthly pension. Along with this, Dearness Relief will also be added to the pension.

Family pension on pension of Rs 60,000

If the pensioner was getting a pension of Rs 60,000 per month and he dies, then according to UPS, the amount of family pension will be given to the family members by adding dearness relief along with Rs 36,000 per month at the rate of 60%.

Monthly pension should be Rs 1 lakh

If an employee used to get a pension of Rs 1 lakh after retirement and he dies, then under UPS, the family will be given a monthly pension of Rs 60,000 at the rate of 60%. This will also include dearness relief.

Dearness relief benefit will be available in all circumstances

In the Unified Pension Scheme, the benefit of dearness relief will be available in assured pension, assured family pension, and assured minimum pension. This relief will be given on the basis of All India Consumer Price Index for Industrial Workers (AICPI-IW), as is given to employees during service.

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UPS Family Pension Calculation: How much money will the family get in case of death of the pensioner, know here

UPS family Pension- Unified Pension Scheme guarantees pension to the employees. It also has a provision for family pension which is not there in NPS.