Central Government employees covered under National Pension System have been given the option under rule 10 of CCS (Implementation of NPS) Rules, 2021, to choose benefits either from old pension schemes or accumulated pension corpus under NPS in the event of their death. The family of a deceased government employee cannot exercise this option.

In case, the employees could not furnish the option in this regard, there is a default option of benefit under the old pension scheme for the first 15 years of service and thereafter, the default option would be the benefits under NPS. At present, the default option of the old pension scheme is valid till March 2024 in accordance with these rules even if the government employee has completed 15 years of service.

Following benefits are available in the event of in-service death of a Central Government Employee covered under NPS:

• Family pension under CCS (Pension) Rules, 1972, as per option exercised by a government servant or default option or in case, government servant has opted for benefits under NPS, the family would get benefits from his accumulated pension wealth under NPS.
• Death gratuity
• Leave encashment
• Benefits from CGEGIS
• CGHS facilities

As per rule 20 of CCS (Implementation of NPS) Rules, 2021, if the government servant had opted for benefits under the old pension scheme or if no option was exercised, then the default is option applicable in his case. The concerned office would take action to sanction family pension to the eligible member(s) of the family of the deceased government servant, as done for government servants covered under the old pension scheme.

Simultaneously, they would start the process to close PRAN under NPS of the government servant and government contribution, and return thereon would be transferred into the government account. The remaining amount would be paid to the nominee or legal heir as per PFRDA regulations in lump sum.