Family Pension – Revised Rate (Illustrative Explanation for General Guidance)

 📢 CIRCULAR

Enhanced Family Pension (EFP) – Revised Rate

(Illustrative Explanation for General Guidance)

Dear Members,

In view of the revision in the Normal Family Pension rate, the method of calculation of Enhanced Family Pension (EFP) is explained below for the clear understanding of all Family Pensioners.

1. Period of Enhanced Family Pension

As per GIEPS 1995 provisions, Enhanced Family Pension (EFP) is payable:

For 7 years from the date of death of the Service Pensioner, or

Till the date on which the deceased pensioner would have attained the age of 65 years,

👉 whichever occurs earlier.

2. Basic Rule for Calculation of EFP

Enhanced Family Pension shall be the LOWER of the following two amounts:

Method–1

50% of the last drawn pay (Basic Pay + admissible FPA)

Method–2

Two times the Normal Family Pension

3. Revised Normal Family Pension Rate

As per the revised provisions:

Normal Family Pension = 30% of last drawn pay

Enhanced Family Pension = 2 × Normal Family Pension

The condition of “whichever is less” continues to apply

4. Illustrative Example

Assume:

Last drawn pay (Basic + FPA) = ₹82,850

Method–1

50% of last drawn pay

= ₹82,850 × 50%

= ₹41,425

Method–2

Normal Family Pension @ 30%

₹82,850 × 30% = ₹24,855

Enhanced Family Pension

= 2 × 24,855

= ₹49,710

5. Application of “Whichever is Less”

Calculation Method

Amount

50% of last pay

₹41,425

2 × 30% Normal FP

₹49,710

👉 Lower amount = ₹41,425

6. Eligible Enhanced Family Pension

✔️ Enhanced Family Pension (Basic) : ₹41,425 per month

➕ Dearness Relief (DR) as applicable

7. Conclusion

After revision of the Normal Family Pension to 30%, the 50% of last drawn pay becomes the payable Enhanced Family Pension in many cases, even while the “whichever is less” condition remains unchanged.

Members may verify their individual entitlement by applying the above method using their own last drawn pay.

General Secretary.