Section 58(1) in The Navy (Pension) Regulations, 1964
(1)Except as provided in sub regulation (2), family pension and gratuity to a widow and dependent's pension shall be assessed on the substantive rank held by an officer on the date of his death if the officer died whilst on the active list or on the date of retirement if death occurred after retirement :Provided that(i)the pension to the widow shall be assessed on the rank next below that in which an officer retired, in cases where an officer retired voluntarily or was compulsorily retired on account of misconduct or inefficiency before completing one year's service in the rank in which he retired ;(ia)[ Ordinary family pension shall be assessed on the paid acting rank provided the acting rank had been held continuously for not less than two years on the date of death. [Inserted by S.R.O. 461, dated 10th November, 1970](ib)If the acting rank is held for less than two years, no benefit thereof shall be admissible.(ic)Where an officer at the time of his death was holding an acting rank more than one step higher than the substantive rank, the benefit of acting rank shall be assessed on the highest acting rank held for at least two years.(id)If service in the highest rank is less than two years, it will be treated on par with service in the next lower rank.(ie)If an officer reverts to his substantive rank under the acting promotion rules either on account of his proceeding on furlough or being on sick leave for more than six months, the period of such reversion, though not counting as service in the paid acting rank, shall not constitute a break in that acting rank:Provided that the officer is appointed to the higher paid acting rank at the end of furlough or sick leave, as the case may be, or dies during such leave, but the condition of the period of two years paid service in that rank should have been fulfilled for being eligible for the concession envisaged above.](ii)the widow shall be allowed pension attached to any rank which was posthumously conferred on her husband under the normal promotion rules;(iii)the Central Government may, in any other case of posthumous conferment of a higher rank, order the pension to be assessed on that rank;Explanation. - Any higher rank attained by the retired officer during re-employment shall not be taken into account for ordinary family pension.
