The Central Government Employees covered under National Pension System (NPS) are given the option to choose benefits either from the old pension scheme or accumulated pension corpus under NPS in the event of their death during service. So far those who are under the NSP scheme could only avail of the benefits under the NPS scheme. If the employee under NPS is not exercising this option, he will be considered for the benefits under the NPS as a default.
The option is not available to the family of the deceased Government employee.
The new rules under CCS (Implementation of NPS) Rules, 2021 were notified through a Gazette notification dated 30th March 2021.
Under Rule 10 of the CCS (Implementation of NPS) Rules, 2021, Every Government servant covered under the National Pension System shall, at the time of joining Government service, exercise an option in Form 1 for availing benefits under the National Pension System or under the Central Civil Service (Pension) Rules, 1972 or the Central Civil Service (Extraordinary Pension) Rules, 1939 in the event of his death or boarding out on account of disablement or retirement on invalidation.
If the Central Government Employee fails to furnish his option, a default option of benefit under the old pension scheme for the first 15 years of service is available. Thereafter, the default option would be the benefits under NPS.
Currently, the default option of the old pension scheme is in vogue till March 2024 in accordance with these rules even if Government Employee has completed 15 years of service.
In an Office Memorandum (O.M.) dated 9th June 2021, the Directorate General of Health Services (DGHS), said employees who are already in Government Service and are covered by the NPS, also need to furnish the details of family in Form 2 to the Head of Office along with Form 1 for record and onward submission to Central Record Keeping Agency.