ISLAMABAD: In a move to relieve the burden on the national exchequer, the federal government proposed 13 amendments to the pension scheme as part of the Budget 2024, ARY News reported on Thursday.
A copy of the proposed amendments to the Government Employees Pension Scheme has emerged according to which the workers will receive a gross pension equivalent to 70 percent of their salary from two years before retirement.
The amendments introduce provisions for voluntary retirement after 25 years of service, offering employees the opportunity to retire earlier than previously allowed.
This option includes a graduated scale for annual deductions from the pension amount, ranging from 3 percent to 20 percent, until the age of 60.
According to the amendments, the annual increase in pension will be given on the basis of the pension received at the time of retirement, the annual increase in pension will be calculated as a separate amount while the Pay and Pension Commission will review the baseline pension every 3 years.
After getting extension of up to 10 years, the family of the deceased employee will receive pension benefits for a period of 25 years.
Meanwhile, the children of pensioners will get lifetime pension benefits in case of disability.
As per the proposed amendments to the pension scheme, individuals who re-engage in government jobs after retirement will receive either a pension or a salary.
Additionally, re-employment after retirement will result in the pension being issued from only one department.
If both husband and wife are government employees, both will be eligible to receive a pension after retirement.
The annual increase in pensions will be equivalent to 80 percent of the average inflation rate over the previous two years.
The increase in pensions due to inflation will be based solely on the current statistics provided by the State Bank of Pakistan (SBP).
