Govt notifies major reforms in pension policy

ISLAMABAD: The Ministry of Finance has issued notifications regarding three key amendments to the pension rules, ARY News reported.

According to the notification, the family pension will now be limited to 10 years whereas if the pensioner dies, only legal heirs will be eligible to receive the pension transfer.

The notification stated that the spouse of a deceased pensioner will continue to receive a pension for 10 years after their death. Furthermore, if a deceased pensioner’s child is disabled, they will be eligible to receive pension for life.

The ministry has also announced measures to discourage early retirement, including a 3% deduction in pension for early retirement. This deduction will apply to the remaining service period up to 60 years.

For civil armed forces personnel, the total deduction for early retirement will be 20%.

Earlier, the Pakistan government notified an increase in salaries and pensions of employees proposed in Budget 2024-25.

Also read: ‘Pension is a huge burden on government’

The adhoc relief allowance of government employees up till grade-16 increased by 25 per cent.

Similarly, the adhoc relief allowance of government officials from grade-17 to grade-22 was raised by 20pc.

Meanwhile, the division also notified a 15pc increase, proposed in the Budget 2024, in pensions of federal employees.

In the notification, the Finance Division stated: “The President has sanctioned an Adhoc Relief Allowance 2024 to all federal government employees i.e. armed forces personnel, civil armed forces, and civil employees of the federal government as well as the civilians paid from defence estimates including contingent paid staff and contract employees employed against civil posts in basic pay scales on standard terms and conditions of contract appointment”.