Option for pension in view of amendment for dual family pension
11-Nov-2023 (In Labour & Service Law)
Sir, I am an xsm reemployed in LIC of India. I did not opt for Pension when option was sought while introducing pension scheme in LIC, because military pension rules prohibited family of xsm from taking dual family pension. The Govt. amended Military pension rules allowing dual family pension, in 2013 giving effect for past cases also but financial benefit from date of amendment. I applied to LIC for another option for pension in view of amended pension rule, under Principle of Natural Justice. They said it is not allowed under lic pension rules. Pl. inform me if I can proceed legally in this matter and if yes, how to proceed further. Thanking you
The Rule54 of the C.C.S. (Pension) Rules 1972 permits only one family pension to the widows of the re-employed ex-servicemen. This is done by taking an option either to accept Military family pension or her husband’s Civil service family pension.
Following a large number of representations on the subject, the Government had finally issued a notification No.1/19/96-P&PW(E) dated the 27th July 2001, published in the Gazette of India (Extraordinary) dated the 27th July 2001, by which sub-rule (13-B) of Rule 54 of the C.C.S. (Pension) Rules, 1972 was amended by insertion of the following proviso after the first proviso:-
“Provided further that family pension, admissible under the Employees Pension Scheme, 1995 and the Family Pension Scheme, 1971 shall however, be allowed in addition to the family pension admissible under these rules”.
The said amendment has come into force from the date of publication of the said notification i.e. 27th July, 2001.
This Office Memorandum clearly states that the widows of the re-employed ex-servicemen pensioners can draw two family pensions w.e.f. 27.7.2001. (One pension from the Defence and the other family pension from the re-employed department)
This amendment to the family pension rules has come into force w.e.f. 27.7.2001. Still so many applications from the re-employed ex-servicemen pensioners for endorsement of family pension are returned for obtaining a ‘non-sanction of family pension certificate from the re-employer’.
Indian Army, Navy and the Air Force are the first employers of these young men and shunted them out at the prime age without caring for the rehabilitation. The denial of 2nd family pension to the widows of the re-employed ex-servicemen is an injustice. After a large number of representations, the government finally agreed to grant this 2nd family pension.
Since the Government order is linking many pension rules, some of the re-employers such as the State Bank of India, still refusing to grant SBI Family Pension to the widows of a number of ex-servicemen re-employed in SBI as Security Guards and Clerical cadre. (A reply letter, denying the 2nd Family Pension from SBI is enclosed)
It is the Record Offices of the Army, Navy and the Air Force should safe guard the interest of the ex-servicemen by writing a letter to all the Department/Banks /PSUs /Autonomous bodies stating the Government order that the widows are eligible for both the family pension.
A copy of the O.M. dated 19.7.2002 is included in this letter for your ready reference.
Kindly go through the OM and relevant rules and issue a letter to all concerned stating that there is no restriction on the family of the deceased ex-servicemen employee from receiving family pension from Defence even if the family is in receipt of family pension other sources. I am inserting a reply letter received from Canara Bank on the subject for your perusal.
A suitable reply from your office will help a large number of widows to get their 2nd family pension which they have been denied so far.
SBI DENIES 2ND FAMILY PENSION TO THE WIDOWS
RE-EMPLOYED EX-SERVICEMEN EMPLOYEES.
In a reply, to a letter written by a retired ex-servicemen employee of the SBI, regarding 2nd Family Pension, the Asst. General Manager (PPG) of SBI LHO Chennai had given as follows:-
State Bank of India,
PPG Department, Local Head Office,
“CIRCLETOP HOUSE”
16, College Lane, Chennai – 600 006.
Phone: 044-28214771 .
Sri U. Ramasamy,
16 Perumal Sannathi Street,
Alwarkurichi, PIN 627412.
Ref.No.PPG1129 Date:03.01.2009.
Dear Sir,
SBI FAMILY PENSION
We refer to your letter enclosing a copy of the letter from Air Force Record Office New Delhi for endorsement of Family Pension from Defence authorities.
2. In this connection we advise that you are governed under State Bank of India Employees’ Pension Rules. As per the extant provisions of Central Civil Services (Pension) rules, family pension admissible shall not be granted to a person who is already in receipt of family pension or is eligible for pension under any other rules of Central Government or State Government and /or Public Sector under taking / Autonomous Body /Local Fund under the Central Government or a State Government. The Rules quoted in the letter RO/3201/4/264859/P&W (EPF)(CF) from Air Force Record Office, New Delhi will have no applicability to a family of the re-employed ex-servicemen in our Bank who is governed by SBI Employees Pension Fund Rules.
3. In view of the above rules you have the option to receive either Defence Family Pension or SBI Family Pension. You are eligible for Family Pension from any one organization i.e., either from Defence or from State Bank of India.
Following a large number of representations on the subject, the Government had finally issued a notification No.1/19/96-P&PW(E) dated the 27th July 2001, published in the Gazette of India (Extraordinary) dated the 27th July 2001, by which sub-rule (13-B) of Rule 54 of the C.C.S. (Pension) Rules, 1972 was amended by insertion of the following proviso after the first proviso:-
“Provided further that family pension, admissible under the Employees Pension Scheme, 1995 and the Family Pension Scheme, 1971 shall however, be allowed in addition to the family pension admissible under these rules”.
The said amendment has come into force from the date of publication of the said notification i.e. 27th July, 2001.
This Office Memorandum clearly states that the widows of the re-employed ex-servicemen pensioners can draw two family pensions w.e.f. 27.7.2001. (One pension from the Defence and the other family pension from the re-employed department)
This amendment to the family pension rules has come into force w.e.f. 27.7.2001. Still so many applications from the re-employed ex-servicemen pensioners for endorsement of family pension are returned for obtaining a ‘non-sanction of family pension certificate from the re-employer’.
Indian Army, Navy and the Air Force are the first employers of these young men and shunted them out at the prime age without caring for the rehabilitation. The denial of 2nd family pension to the widows of the re-employed ex-servicemen is an injustice. After a large number of representations, the government finally agreed to grant this 2nd family pension.
Since the Government order is linking many pension rules, some of the re-employers such as the State Bank of India, still refusing to grant SBI Family Pension to the widows of a number of ex-servicemen re-employed in SBI as Security Guards and Clerical cadre. (A reply letter, denying the 2nd Family Pension from SBI is enclosed)
It is the Record Offices of the Army, Navy and the Air Force should safe guard the interest of the ex-servicemen by writing a letter to all the Department/Banks /PSUs /Autonomous bodies stating the Government order that the widows are eligible for both the family pension.
A copy of the O.M. dated 19.7.2002 is included in this letter for your ready reference.
Kindly go through the OM and relevant rules and issue a letter to all concerned stating that there is no restriction on the family of the deceased ex-servicemen employee from receiving family pension from Defence even if the family is in receipt of family pension other sources. I am inserting a reply letter received from Canara Bank on the subject for your perusal.
A suitable reply from your office will help a large number of widows to get their 2nd family pension which they have been denied so far.
SBI DENIES 2ND FAMILY PENSION TO THE WIDOWS
RE-EMPLOYED EX-SERVICEMEN EMPLOYEES.
In a reply, to a letter written by a retired ex-servicemen employee of the SBI, regarding 2nd Family Pension, the Asst. General Manager (PPG) of SBI LHO Chennai had given as follows:-
State Bank of India,
PPG Department, Local Head Office,
“CIRCLETOP HOUSE”
16, College Lane, Chennai – 600 006.
Phone: 044-28214771 .
Sri U. Ramasamy,
16 Perumal Sannathi Street,
Alwarkurichi, PIN 627412.
Ref.No.PPG1129 Date:03.01.2009.
Dear Sir,
SBI FAMILY PENSION
We refer to your letter enclosing a copy of the letter from Air Force Record Office New Delhi for endorsement of Family Pension from Defence authorities.
2. In this connection we advise that you are governed under State Bank of India Employees’ Pension Rules. As per the extant provisions of Central Civil Services (Pension) rules, family pension admissible shall not be granted to a person who is already in receipt of family pension or is eligible for pension under any other rules of Central Government or State Government and /or Public Sector under taking / Autonomous Body /Local Fund under the Central Government or a State Government. The Rules quoted in the letter RO/3201/4/264859/P&W (EPF)(CF) from Air Force Record Office, New Delhi will have no applicability to a family of the re-employed ex-servicemen in our Bank who is governed by SBI Employees Pension Fund Rules.
3. In view of the above rules you have the option to receive either Defence Family Pension or SBI Family Pension. You are eligible for Family Pension from any one organization i.e., either from Defence or from State Bank of India.
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