The Central Government has modified the guidelines for payment of ex-gratia lump sum compensation to family of Central Government Employees who die in overall performance of official duty. The households of Central Civil Government servants, who die ahead of retirement in the overall performance of their bonafide official duties beneath numerous situations, are entitled to payment of ex-gratia lump sum compensation. This quantity has been revised from time to time.
Now, the Finance Ministry has decided that the payment of the ex-gratia lump sum compensation will be made to a member, or members of the family, in whose favour nomination is made by the Government servant through service.
“On death of a Government servant, payment of other lump sum amounts, such as death gratuity, GPF balance and CGEGIS amount, is made in accordance with the nominations made by the Government servant during service. Accordingly, it has been decided that, on death of a Government servant in the performance of bona fide duty also, 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 service,” the Department of Pension and Pensioners Welfare (DoPPW) stated in an Office Memorandum(O.M.) dated 30th September 2021.
The Government has also amended the Common Nomination Form in Form 1 appended to the CCS (Pension) Rules, 1972 to contain the nomination in respect of the ex-gratia lump sum payment.
What if no nomination is made
The DoPPW stated that if no nomination has been made or the nomination made by the Government servant does not subsist, the ex-gratia lump sum compensation will be shared equally by all eligible family members, as in the case of Gratuity, in accordance with Rule 51 of the CCS (Pension) Rules.
Nomination outdoors family not permitted
The DoPPW also stated that no nomination can be made in favour of a individual who is not a member of the family, even exactly where the Government servant has no family.
“The nomination for ex-gratia lump sum payment shall be subject to the provisions as applicable in the case of gratuity under Rule 53 of the CCS (Pension) Rules, 1972. Since the ex-gratia lump sum payment is payable to the family only, no nomination shall be made in favour of a person who is not a member of the family, even where the Government servant has no family,” the O.M. stated.
Why new rule
After the death of a Government servant, payment of other lump sum amounts, such as death gratuity, GPF balance and CGEGIS quantity, is made in accordance with the nominations made by the Government servant through service.
However, the current guidelines did not specify the member of the family to whom such exgratia lump sum compensation is payable. Hence, till now this payment has been made to the member of the family who is eligible for extraordinary family pension beneath the CCS (Extraordinary Pension) Rules, 1939.
The salary to Central Government Employees is paid in accordance with the 7th Pay Commission suggestions.