Pension and Inheritance

Last Updated on March 23, 2022 by Galaxy World

You will read in detail about the Pension and Inheritance, Inheritable and Inheritable Assets, Succession Certificates, Tarka, and 11 priorities of eligible family members. You will also read regarding Laws Under Which Payment after Death the family gets.

Details of Pension and Inheritance for Family

 

Let’s read in detail about Pension and Inheritance for the employees. Inheritance, generally speaking in short, is the receiving of assets [money, property, or title, etc.] by a family member, as an heir, upon the death of the previous owner of the assets. Courts generally issue Succession Certificates which explain the share of each successor/heir in the assets left behind by a deceased person.

Family Pension, as well as other death-related benefits, payable by the employer to the specific family members of the deceased employee, are not inheritable assets. These benefits are given to only those family members who have been specified in the relevant rules, on meeting the conditions prescribed therein. Laws under which payment after the death of a deceased employee is made to the specified family member/s include:-

 

Laws Under Which Payment after Death is Made to Family

 

Sr. No The benefit to a family member Law/orders applicable
1 Family Pension in death-during-service and death-after-retirement both cases Civil Servants Act, Civil Service Regulations, Pension rules/orders
2 Sum assured under Group Insurance Federal Government Employees Group Insurance and Benevolent Funds Act 1969 and rules issued thereunder
3 Lump / Periodical grants
4 Grant for children’s marriage
5 Children Education
6 A plot of land (or cash in lieu) Prime Minister’s Assistance Packages for employees’ security-related / in-service death
7 Special Grant from the government
Family Pension Payable

 

Title of the family members to the benefits listed above arises only after the death of the deceased employee. Family pension is payable from the date immediately following the date of death of the principal pensioner.  For other benefits, too, the eligible family member has to formally apply along with a copy of the death certificate and pension order, and other documents.  Since these benefits are received by the family member after the death of the principal pensioner, no question arises of these being the inheritable assets of the deceased on the date of his death.

 

Difference Between Inheritable and Inheritable Assets of the Employee

 

It may be added that amounts remaining out of a pension (including commutation value and gratuity), G P Fund final payment, or other retirement benefits, actually received by the principal pensioner himself up to the date of his death, are inheritable assets. All amounts received / receivable by the eligible family member after the death of the principal pensioner are not inheritable assets.

 

Is Family Pension Payable to All Successor Children or Only Who Eligible as per Pension Rules?

 

Auditor General of Pakistan issued circularNo.430-A/14-81 on 9 Apr 1983 (copied below) to all Directors General Audit etc., citing a case where a civil judge had allowed shares in pension to all children of the deceased pensioner, including a son 25 years old and a married daughter 23 years old. Since no share in family pension is admissible to married daughters and sons over 21 years of age, advice of Finance Division was sought whether the family pension is payable to all successor children, or only to those who are eligible as per pension rules.

 

Finance Division clarified after consulting the Law Division that succession certificate issued by courts has no bearing on the title of surviving children of the deceased pensioner to family pension. Payment of family pension has, therefore, to be made strictly in accordance with relevant rules and orders (which do not allow any share in family pension to married daughters and children above 21 years of age.

 

Tarka

 

There are cases in which the court did issue a succession certificate. But the court clarified that “As far as Pension / Assistance Package / Benevolent Fund on monthly basis concerns, the same is not part of “Tarka” and as such, is to be governed by relevant Government Rules accordingly.”  In another case, the civil judge ordered that “Pension and other departmental dues which is present in the shape of Gratuity, Group Insurance, G.P. Fund, funeral grant in aid or benevolent, etc, the same they must deal with strictly with the pension rules as per their respective shares.”

 

Family Pension to Eligible Members

 

The Pension Facilitation Centre of AGPR Islamabad office advised its sub-offices at Karachi, Lahore, Peshawar, Quetta, and Gilgit through No.PFC/Coord/HWM/2018-19/3756 dated 21 March 2019, with a copy to the Wafaqi Mohtasib (copied below) that family pension they should allow to an eligible family member in terms of Finance Division O.M. No.1(13)-Reg.6/83 dated 23 Oct 1983. There is no requirement for any succession certificate for this purpose. A circular therefore they should issue to all ministries/divisions/departments for sending family pension cases without succession certificates from the court.

 

Federal Government Orders Regarding Eligible Family Members for Pension

 

Federal government orders contained in Paras 8 (2) (i) to (vi) and Paras 8 (2) (b) (i) to (v) of Finance Division O.M.No. 1(13)-Reg. 6/83, dated 23-10-1983 (amended up to 19 June 2018 through Finance Division O.M. No.F.13(16)- Reg.6/2017-516) are as below:

 

“8. (2) (a) A pension sanctioned under this Section will be allowed to:—

(i) Widow of the deceased for her life, if the deceased is a male Government servant and husband in case of a female govt. servant.   If the Government servant had more than one wife, and the number of his surviving widows and children does not exceed 4, the pension shall be divided equally among the surviving widows for life and children. If the number of surviving widows and children together is more than four, the pension shall be divided in the following manner, viz. each surviving widow shall get 1/4th of the pension, and the balance if any shall be divided equally among the surviving children.

For the purpose of this clause, the term “children” excludes sons above the age of 21 years, married daughters and daughters above the age of 21 years;

(ii) failing widow or husband, as the case may be, the pension they should divide equally among the surviving son(s) not above 21 years and unmarried daughter(s) / widowed daughter(s) / divorced daughter(s) till marriage/re-marriage.”

(iii) failing (i) and (ii), to the eldest widow of a deceased son of the Government servant for 10 years or un-expired portion of 10 years;

 

Other Beneficiaries

 

(iv) failing (i) to (iii), to the surviving son below 21 years of age of a deceased son of the Government servant for 10 years or the unexpired portion of 10 years;

(v) failing (i) to (iv), to the eldest unmarried daughter below 21 years of age of a deceased son of the Government servant for 10 years or the unexpired portion of 10 years.

(vi) failing these, to the eldest widowed daughter of a deceased son of the Government servant for 10 years or un-expired portion of 10 years;

(b) In the event of no pension payable under clause (a), the family pension they should grant for a period of 10 years or an unexpired portion of 10 years—

(i)  to the father; for life,

(ii) [failing the father], to the mother; for life,

(iii) [failing the father and the mother], to the eldest surviving brother below the age of 21;

(iv) [failing (i) to (iii)], to the eldest surviving unmarried sister; if the eldest sister marries or dies then to the next eldest unmarried sister for life or till her marriage;

(v) [failing (i) to (iv)], to the eldest surviving widowed sister for 10 years or an unexpired portion of 10 years.

 

Priorities of family members 1st to 11th

 

Stating in simple language, priorities of family members in receiving family pension may be explained from First to Eleventh as under. [The overriding condition must be met before the family pension is claimed by or allowed to a family member having a lower priority than that of a member having higher priority].

 

First Priority

 

(a)   widower of a female pensioner, or sole widow of a male pensioner; otherwise

(b)   (i) If the pensioner has more than one wife, and the number of surviving wives and children (less than 21 years old) does not exceed 4, then the family pension should share equally to all of them; otherwise

(ii) If the number of surviving wives and children (less than 21 years old) exceeds 4, then each widow should allow 1/4th, and the remaining if any should share by the children.

Note 1: “children” exclude those over 21 years, and married daughters.

Note 2: a widow or divorced or unmarried daughters have Second Priority.

 

Second Priority

 

Failing any member with First Priority, the pension they should divide equally among the surviving son(s) less than 21 years old and unmarried daughter(s) / widowed daughter(s) / divorced daughter(s) till marriage/re-marriage.

 

Third Priority

 

Failing members with First and Second Priorities, the eldest widow of a deceased son of the Government servant for 10 years or un-expired portion of 10 years;

 

Fourth Priority

 

Failing members with First to Third Priorities, to the surviving son below 21 years of age of a deceased son of the Government servant for 10 years or the unexpired portion of 10 years;

 

Fifth Priority

 

Failing members with First to Fourth Priorities, to the eldest unmarried daughter below 21 years of age of a deceased son of the Government servant for 10 years or the unexpired portion of 10 years.

 

Sixth Priority

 

Failing members with First to Fifth Priorities, to the eldest widowed daughter of a deceased son of the Government servant for 10 years or un-expired portion of 10 years;

 

Seventh Priority

 

Failing members with First to Sixth Priorities, to the father for life.

 

Eighth Priority

 

Failing members with First to Seventh Priorities, to the mother for life.

 

Ninth Priority

 

Failing members with First to Eighth Priorities, to the brother less than 21 years of age.

 

Tenth Priority

 

Failing members with First to Ninth Priorities, to the unmarried sister for 10 years or the unexpired portion of 10 years;

 

Eleventh Priority

 

Failing members with First to Tenth Priorities, to the widowed sister for 10 years or the unexpired portion of 10 years;

 

Pension and Inheritance (legal Heirs of Pension)

 

Notification of AGP Regarding Pension and Inheritance

 

OFFICE OF THE AUDITOR GENERAL OF PAKISTAN

CENTRAL GOVERNMENT OFFICES BUILDINGS,

GULBERG III, LAHORE

No.430-A/14-81                                                                                  Dated 9/4/83.

To

 

  1. All Directors General of Audit,
  2. All Directors
  3. Comptroller, Baluchistan, Quetta
  4. All Accountants General
  5. Audit Officer I S & F, Karachi
  6. All Training Institutes, and
  7. All Officers (Local.)

 

Subject:     FAMILY PENSION/GRATUIT IN RESPECT OF DECEASED GOVERNMENT SERVANT

 

As provided in the   Pension  Rules,  no share of the gratuity/family pension is admissible to the married daughters and   18   years old sons of a    deceased     Government servant. The married son aged  25 years of a deceased  Government servant, whose wife had expired in his lifetime, produced a  “Succession Certificate” from the Civil Judge. In the    “Succession Certificate,”      the     Court had granted share to all the children      (including the son of    25   years and daughter of     23     years both married)     in pursuance of the   Quranic Shares. This office had sought the advice of the Finance Division as to whether the payment they should make to all the heirs mentioned in the  “Succession Certificate” or to those heirs who have entitlement according to the provision in the rules.

  1. The Finance  Division in consultation with the Law Division has advised that “Succession Certificate”  is a passive declaration of the heirs of a deceased with their shares in accordance with the Muslim Law and has no bearing on the point of entitlement to pensionary benefits and/or gratuity to the surviving relatives of a deceased Government Servant, to whom payment shall be made strictly in accordance with the provisions of the relevant rules/orders,   etc.
  1. In the future action may please take according to para  2  above wherever deemed necessary.

Sd/-

 

Family Pension Rules and Pension and Inheritance

Family Pension Who Is Eligible

 

As far as Pension / Assistance Package / Benevolent Fund on monthly basis is concerned, the same is not part of “Tarka” and as such, is to be governed by relevant Government Rules accordingly.

 

Pension Tarka

Pension and other departmental dues which are present in the shape of Gratuity, Group Insurance, G.P. Fund, funeral grant in aid of benevolent, etc, the same must be dealt with strictly with the pension rules as per their respective shares.

 

“Viewers are welcome to get in touch with me over 0300 9800246 for any more information or questions during working hours.
Agha Amir”

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2 thoughts on “Pension and Inheritance

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