ISLAMABAD: In a major reform, the finance ministry has issued the office order regarding three key amendments to the pension rules on the recommendation of the Pay and Pension Commission 2020.
According to the documents, the federal government has limited the family pension to 10 years after the death of the retired employee whereas if the pensioner dies, only legal heirs will be eligible to receive the pension transfer.
Moreover, the spouse of a deceased pensioner will continue to receive a pension for 10 years after their death, however, in the case of the deceased pensioner’s special child, they will be eligible to receive a pension for life. The period of special family pension was fixed at 25 years.
The ministry’s office memoranda also stated that 25 years of service would be mandatory for voluntary retirement before the age of superannuation. The move aimed at reducing the mounting burden of the pensions bill.
To discourse early retirement, a 3% deduction will be done in pension for early retired employees. 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%. The office order further stated that the period of family pension for martyrs had been increased to 25 years.
The family pension for the armed forces and civil armed forces had been increased by 50%. This increase would be on the last pension amount received by the pensioner of all ranks in the forces.
Earlier, the finance division also notified a 15pc increase in pensions of employees proposed in Budget 2024-25.
The Adhoc Relief Allowance 2024 for all federal government employees up to 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.