Entitlement for Family on Death of Central Government Servant Opted for Unified Pension Scheme under NPS – DoP&PW Clarification
New Delhi: Department of Pension and Pensioners’ Welfare (DoP&PW), under the Ministry of Personnel, Public Grievances and Pensions, has issued an important clarification regarding entitlement of family members in the event of death of a Central Government employee who has opted for the Unified Pension Scheme (UPS) under the National Pension System (NPS).
The clarification has been issued through Office Memorandum No. 57/03/2022-P&PW(B)/8361(7), dated 29th October 2025, in continuation of the recently notified Central Civil Services (Implementation of Unified Pension Scheme under NPS) Rules, 2025, and CCS (Payment of Gratuity under NPS) Rules, 2021.
Key Provisions Mentioned in the O.M.
Applicability:
The new rules govern service-related matters and gratuity benefits for Central Government civil employees who have opted for the Unified Pension Scheme (UPS) under NPS.
Entitlement on Death of Subscriber:
As per Rule 19 of the CCS (Implementation of UPS under NPS) Rules, 2025:
If a subscriber dies and had opted (or by default was covered) for benefits under the CCS (Pension) Rules, 2021 or CCS (Extraordinary Pension) Rules, 2023, the Head of Office shall initiate action to release pensionary benefits as per those rules.
If the death is attributable to government service, benefits will be governed by the Extraordinary Pension Rules, 2023.
Handling of NPS Corpus:
If pensionary benefits are sanctioned under CCS (Pension) or CCS (Extraordinary Pension) Rules, the Government’s contribution and returns in the UPS account shall be transferred back to the Government account.
The remaining corpus shall be paid in lump sum to the legally wedded spouse. If no spouse exists, it will go to the legal heirs of the deceased employee.
Unified Pension Scheme Benefits:
For employees who had exercised the option to remain under UPS benefits, the family’s entitlement will be processed as per PFRDA (Operationalisation of Unified Pension Scheme under NPS) Regulations, 2025.
Death Gratuity under UPS:
The family of a deceased government employee covered under UPS will also be eligible for death gratuity under Rule 22 of the CCS (Payment of Gratuity under NPS) Rules, 2021, as follows:
| Length of Qualifying Service | Rate of Death Gratuity |
|---|---|
| Less than 1 year | 2 times of emoluments |
| 1 year or more but less than 5 years | 6 times of emoluments |
| 5 years or more but less than 11 years | 12 times of emoluments |
| 11 years or more but less than 20 years | 20 times of emoluments |
| 20 years or more | Half of emoluments for every completed six-month period, subject to a maximum of 33 times of emoluments |
Implementation:
All Ministries and Departments have been directed to bring these provisions to the notice of employees covered under UPS and ensure strict implementation of the instructions.
This Office Memorandum, signed by S. Chakrabarti, Under Secretary to the Government of India, provides detailed procedural guidance ensuring that the families of deceased government employees under the Unified Pension Scheme receive their rightful entitlements efficiently and transparently.
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