Central Govt Employees: Big Change in Ex-Gratia Lump Sum Compensation Payment Rules

7th Pay Commission: The Department of Pension and Pensioners Welfare, Ministry of Personnel Public Grievances and Pensions, Government of India, has released a circular on September 30, highlighting a few changes in the payment of ex-gratia lump-sum compensation to families of central government employees who passed away during their tenure of duty. According to the CCS (Extraordinary Pension) Rules, 1939, the families of the central government servant who died before their retirement are entitled to ex-gratia lump-sum compensation.

In an office memorandum dated September 30, the government has announced that the payment of ex-gratia compensation will be made to the member who is nominated by the employees during their service. The decision to tweak the policy was taken after a thorough consultation with the Department of Expenditure, Ministry of Finance.

The amount will be concocted by the payment of gratuity, GPF balance, and the Central Government Employees Group Insurance Scheme (CGEGIS). Earlier, the provision mentioned that the payment would be granted to the family member who is eligible under the 1939 rule, and there was no protocol for choosing a nominee.

“On the death of a government servant in the performance of bona fide duty, the 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 the service,” the memo read.

The memo also stated that few changes were made to the Common Nomination Form in Form 1 appended to the CCS (Pension) Rules, 1972, which includes the introduction of the nomination of the family member eligible for the ex-gratia compensation. Also, since the compensation is limited to family members only, no nominations outside the family will be given viability. The circular also mentions that in case the employee fails to nominate anybody, then the amount of compensation will be divided equally among all the family members.

The memorandum issued on September 30 laid down the changes made in the ex-gratia compensation for families of government employees, which will be applicable to cases after the date of issue. However, all cases before September 30 will be dealt with according to the previous rules.

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