Centre clarifies pension norms:
Your last working day could change the game
New Delhi, Nov 4, 2025
New clarification defines how retirement date impacts pension and family pension calculations
The central government has issued a clarification on how pensions and family pensions will be calculated for employees under the Central Civil Services (Pension) Rules, 2021. The Department of Pension and Pensioners’ Welfare (DoPPW) released an office memorandum to remove ambiguity about which day is considered an employee’s “last working day” for pension purposes.
Pension to be calculated according to rules in force on the last working day
According to Rule 5 of the CCS (Pension) Rules, 2021, any claim for pension or family pension will be governed by the provisions in force on the date of retirement, discharge, resignation, or death of the employee, whichever occurs first.
This means that the specific rules and entitlements applicable on the employee’s last working day will determine how their pension is calculated.
“Any claim to pension or family pension shall be regulated by the provisions of these rules in force at the time when a government servant retires or is retired or is discharged or is allowed to resign from service or dies, as the case may be,” the DoPPW stated in the memorandum.
What if the employee is on leave or under suspension?
The clarification also addresses cases where an employee is on leave, absent, or under suspension immediately before retirement or death. In such situations, the day of retirement or death will be treated as part of the leave, absence, or suspension period.
This ensures that there is no confusion or break in service for the purpose of pension calculation.
New rule for enhanced family pension
In a separate clarification, the DoPPW has also updated the procedure for parents of deceased government employees to claim family pension at a higher rate.
To receive the enhanced pension, both parents will now be required to submit individual life certificates every year. This step aims to:
· Keep pension records updated regularly
· Avoid overpayment in cases where one parent passes away
Under Rule 12(5) of the revised CCS (Extraordinary Pension) Rules, 2023, parents are eligible for a lifetime family pension if the deceased employee has no surviving spouse or eligible children.
Why does this matter?
The clarification brings greater transparency and uniformity to pension processing across government departments. It will help prevent disputes related to retirement date interpretation, and streamline pension disbursal, especially in cases involving suspension, leave, or family pension eligibility.
[The Business Standard]
