ISLAMABAD: In a move to relieve the burden on the national exchequer, the federal government proposed 13 amendments to the pension scheme as part of the Federal Budget 2024-25.
A draft of the proposed changes to the Government Employees Pension Scheme has surfaced. According to the proposed amendments, employees will get a gross pension equal to 70% from two years before their pay.
The change gives employees the option to leave earlier than previously permitted by introducing options for voluntary retirement after 25 years of service.
With this option, annual pension deductions are made on a progressive schedule, starting at 3 percent and going up to 20 percent until the age of 60.
The revisions state that the pension increase each year will be based on the pension obtained at the time of retirement and that it will be computed as a separate amount. Every three years, the Pay and Pension Commission will evaluate the base pension.
The family of the dead employee will get pension benefits for a period of 25 years after receiving an extension of up to 10 years.
How much pension will the employee get retiring before 60 years
As per the new proposed amendments the employee will receive a gross pension equivalent to 70 percent of their salary from two years before retirement.
The amendments introduce provisions for voluntary retirement after 25 years of service, offering employees the opportunity to retire earlier than previously allowed.
People who work for the government again after retirement would be paid a wage or a pension under the proposed changes to the pension plan.
Furthermore, only one department will be able to issue the pension if the retiree finds a new job after retirement. If a husband and wife work for the government, they will both be qualified for a pension upon retirement.
The annual increase in pensions will be equivalent to 80 percent of the average inflation rate over the previous two years. The increase in pensions due to inflation will be based solely on the current statistics provided by the State Bank of Pakistan (SBP).
