Govt notifies major reforms in pension policy

According to the notice, pension payments to family members have now been restricted to 10 years. When the pensioner dies and is interred, only legal heirs of his/her estate can inherit any portion of it from his/her pension fund.

In accordance with this notice, spouses of deceased pensioners will be eligible to receive a pension for 10 years following their demise and, should their child become disabled and qualify as such, will qualify to receive lifelong payments from their pensioner.

The Ministry has introduced measures that aim to curb early retirement, such as deducting 3% from pensions for early retirees (up to 60 years of service period).

The total deduction for early retirement for civil armed forces personnel will be 20%.

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

Referring back to: “Pension costs a substantial burden on governments”

Adhoc relief allowances of federal employees who are at grade 16 or higher have seen an increase of 25%.

Similar to what was done for government employees from grades 17-22, their adhoc relief allowance has also been raised by 20 percent.

Additionally, the division announced in Budget 2024 a 15% pension increase for federal workers.

Finance Division announced in its notification: “The President has authorized an Adhoc Relief Allowance 2024 for all federal government employees, such as military and civilian armed forces civilian employees employed by the Federal Government or paid out of defence estimates; contingent-paid personnel working civil positions on basic pay scales as contract employees under normal terms of appointment”.