Govt updates pension policy with new guidelines

QUETTA: The Balochistan government has introduced significant updates to its pension policy, aligning it with the federal government’s framework. The revised policy aims to streamline pension distribution and provide clarity on eligibility criteria.

According to a notification issued by the provincial finance department, the new guidelines state that family pension will now be valid for 10 years. However, in cases where the children of the deceased are disabled, the pension will be given for life. Moreover, children of deceased pensioners will be eligible to receive pension up to the age of 21.

These updates are part of the government’s efforts to align provincial policies with federal regulations and ensure continuous financial assistance to the families of retired or deceased government employees.

Federal Govt Pension Reforms

The announcement follows recent changes by the federal government to the Special Family Pension Policy, which has restricted eligibility to the families of martyrs of the armed forces and civil armed forces. According to the Finance Division, the families of martyrs will now receive pension for a period of 25 years.

In addition, the federal government had introduced pension reforms on January 1 under the conditions set by the International Monetary Fund (IMF).

Under these reforms:

• Retired employees will receive a pension equivalent to their average salary over the last 24 months.
• The pension amount will be adjusted annually based on the average salary.
• The double pension system has been abolished. Retired employees returning to work can choose between their salary or pension, but not both.
• If both spouses were federal government employees, they will each receive separate pensions upon retirement.

A detailed office memorandum was issued to ensure the continued implementation of these reforms across all relevant departments.

These updates mark a significant shift in pension policies at both the provincial and federal levels, aimed at ensuring financial stability while maintaining support for retired government employees and their families.