Govt announces changes in pension rules

LAHORE: Significant amendments have been made to the pension rules for government employees in Punjab, following a formal notification issued by the Punjab Finance Department.

Under the revised rules, a new condition has been introduced for voluntary retirement. In addition to completing 25 years of qualifying service, employees must now also meet a minimum age requirement of 55 years.

Voluntary retirement will be granted on the basis of “25 years of service or 55 years of age,” whichever occurs later.

In cases of forced retirement, pension benefits will now be governed by the new rules after 20 years of qualifying service.

The amendments also revise provisions related to pensions in cases involving corruption or misconduct.

Completion of qualifying service has been formally incorporated as a mandatory condition in such cases.

According to the Finance Department, the amendments aim to bring transparency and discipline to the pension system. The notification clearly states that the new amendments will come into effect immediately.

Earlier, the federal government allowed retired government employees who were rehired to draw both their salary and pension simultaneously.

The decision applies to retired government servants who are reappointed to government jobs after retirement. The Ministry of Finance has issued an office memorandum withdrawing two earlier notifications dated April 22, 2025, and June 19, 2025, with immediate effect.

The new office memorandum has been circulated to all federal ministries and divisions.

Previously, retired public servants rejoining government service after the age of 60 were required to choose between drawing a salary or receiving their pension during the period of re-employment. That restriction was introduced as part of broader pension reforms aimed at reducing the government’s growing pension liabilities.