Govt Limits Pension Duration For Eligible Families For 10 Years

In case of spouse’s death or disqualification, family members will now be eligible to receive pension for up to 25 years

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-Sept 11th, 2024) The Federal government has introduced three major amendments to the pension rules for its employees following the recommendations of the Pay and Pension Commission 2020, according to an official notification issued by the Finance Division.

As per the new amendments, the duration of pension payments for remaining eligible family members, in the event of the spouse’s death or disqualification, has been capped at a maximum of 10 years.

However, if the deceased pensioner’s child is disabled, they will be entitled to a lifetime pension.

For other eligible children, the general family pension would be provided either for 10 years or until the child reaches 21 years of age, whichever comes first.

The amendments also bring changes to the special family pension scheme.

In case of the spouse’s death or disqualification, the family members will now be eligible to receive the pension for up to 25 years.

In instances where the pensioner’s child is disabled, the pension will continue for life.

Additionally, the pension rates for all ranks of the Armed Forces and Civil Armed Forces have been increased by 50%.

The pension could now be transferred to eligible heirs.

A major change has been made for employees who opt for voluntary retirement.

According to the amendment, any employee who retires voluntarily after completing 25 years of service will face a pension reduction.

The reduction will be applied at a rate of 3% per year for the remaining service period until the age of 60.

The total deduction is capped at 20%.

The Finance Division officially notified all ministries and divisions to ensure the immediate implementation of these amendments, which are effective immediately.