UPS family pension rule: Pension to wife after death of husband

In this article we will learn about the new pension scheme UPS, family pension, eligibility, pension amount, and how to claim pension.

What is UPS?

On August 24, the new pension scheme UPS was launched by RBI Governor Shaktikanta Das which will be effective from April 1, 2025. The Unified Pension Scheme has had to be brought about by the dissatisfaction caused by the NPS among government employees. Although this scheme has been implemented only for Central Government employees, but if the state government wants, it can implement the UPS scheme for state employees also. By implementing this pension scheme on 25th August, Maharashtra has become the first state to implement the UPS Pension Scheme.

Important Note:

Retired employees and eligible family pensioners will also be able to avail the benefit of UPS pension between 2004 to 2024. After shifting from NPS to UPS, their pension and family pension will be recalculated. The payable amount will be given to the pensioner by increasing the interest rate on PPF.

What is Family Pension?

Under UPS Pension, after the death of the pensioner, some part of his pension is given to his dependents for their living, which is called family pension. It is a regular monthly payment given to eligible family members, primarily the spouse, to help meet their financial needs. The family pension received under UPS Pension Scheme is more than OPS and NPS.

Link: Calculate Your UPS Pension

Pension to Wife After Death of Husband

In most cases, the wife is the first eligible for family pension after the death of her husband. If the wife is in a government job, the husband is entitled to pension after her death. UPS family pension is determined on the basis of the pension received by the deceased employee. The wife/husband continues to receive this pension for life unless he/she remarries.

Who are Eligible for Family Pension?

The government has not yet clarified anything about the eligibility for UPS Family Pension, hence we assume that the eligibility for UPS Family Pension will be the same as NPS Family Pension. Following are the persons eligible for UPS Family Pension.

1. The first person to receive UPS Family Pension (after the death of the pensioner) is the widow or widower (wife/husband).

2. A woman who has no children and is married for the second time is entitled to a family pension, as long as her income from all sources is less than the minimum family pension.

3. Children dependent on the pensioner who are below 25 years of age, are not married, or do not earn are eligible for family pension.

4. Mentally or physically disabled children are entitled to family pension until they get married.

5. In some cases, dependent parents are entitled to a pension if there is no surviving spouse or qualifying children.

6. In some cases, when no one is alive in the pensioner’s family, dependent brothers and sisters are entitled to pension.

7. An unmarried or widowed girl is also entitled to family pension until she gets married or remarried.

How Much Pension to Wife After Death of Husband?

The family pension given to the wife under UPS is based on the pension received by the deceased husband. This is 60% of his current pension and DR is also given along with it. In earlier pension schemes, family pension was usually 30% of the last basic pay drawn by the deceased.

Example: If the last monthly salary of person ‘A’ is Rs 100000, then the pension of that person will be Rs 50000 to which the DR received every year will also be added. If the pensioner dies after a few years, the UPS Family Pension will be 60% of the last pension. (On immediate death the wife will get a pension of Rs 30,000.)

Link: Amount will you get after retirement

How to Get Pension After Death of Husband?

To claim UPS family pension after the death of her husband, a widow has to follow the following steps:

Step1: Inform the employer: Immediately inform the employer or pension disbursement office about the death of the pensioner.

Step2: Submit required documents: Submit the pensioner’s death certificate, pensioner’s ID, marriage certificate and other required documents as prescribed by the pension officer to the office.

Step3: Fill the Pension Form: Fill the family pension application form provided by the employer or pension authority.

Step4: Track process: Track pension processing and ensure that pensions are initiated as per the guidelines.

Family Pension Calculator

The Family Pension Calculator helps in determining the estimated pension amount to be received by the family after the death of the primary pensioner. Calculate your family pension amount.

Family Pension Taxability

Family pension received by spouse or dependents is taxable under the head “Income from other sources”. However, ₹15,000 or one-third of the pension received, whichever is less, is tax free. Apart from this amount, the remaining family pension is subject to income tax depending on the tax slab.

Who are Not Eligible for Family Pension?

The following persons may not be eligible for family pension:

1. In many cases, if the widow or widower remarries, they lose their right to family pension.

2. If children start earning sufficient income, they are no longer eligible for family pension.

3. In most pension schemes, once daughters get married, they are not eligible for family pension unless they become widows.

4. Family members who are not financially dependent on the deceased employee are not eligible for family pension.