As per the CCS (Extraordinary Pension) Rules, 1939, if an employee dies before retirement, the family is entitled to ex-gratia lump-sum compensation.
The government has made a big change in the ex-gratia lump-sum compensation payment rules for Central government employees. In a circular released on September 30, the Department of Pension and Pensioners Welfare highlighting changes in the payment of ex-gratia lump-sum compensation to families of employees who passed away during their tenure of duty.
As per the CCS (Extraordinary Pension) Rules, 1939, in the case of a Central government employee who dies before retirement, the family of the deceased is entitled to ex-gratia lump-sum compensation.
The government order says that the payment of ex-gratia compensation will be made to the member who is nominated by the employees during their service. The amount will include the payment of gratuity, GPF balance and the Central Government Employees Group Insurance Scheme (CGEGIS).
As per the previous rule, the ex-gratia compensation was granted to the family member who was eligible under the 1939 rule, and there was no protocol for choosing a nominee.
"On the death of a government servant in the performance of bona fide duty, the 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 the service," the memo read.
What memo states
Few changes are made to the Common Nomination Form in Form 1 appended to the CCS (Pension) Rules, 1972.
The changes include the introduction of the nomination of the family member eligible for the ex-gratia compensation.
No nominations outside the family will be given viability and are strictly limited to family members of the employee.
In case the employee fails to nominate, the amount of compensation will be divided equally among all the family members.
All cases before September 30 will be dealt with according to the previous compensation rules of the government.
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 "Ex-gratia lump sum compensation payment rules changed")
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