ISLAMABAD – In a major development, the Finance Division has made three significant amendments to the federal employees’ pension rules based on the recommendations of the Pay and Pension Commission 2020.
According to the office memorandum, in case of the spouse’s death or ineligibility, the pension duration for the remaining eligible family members has been limited to a maximum of 10 years.
If the deceased pensioner’s child is disabled, they will receive a lifelong pension. In the case of eligible children, the general family pension will be provided for up to 10 years or until the child turns 21 years old.
Under the amendment to the special family pension rules, if the pension-receiving spouse dies or is no longer eligible, family members will receive pension benefits for up to 25 years. If the pensioner’s child or children are disabled, the pension will be provided for life.
For all ranks of the armed forces and civil armed forces, a 50% increase in the pension rate has been granted for existing pensioners. This pension can be transferred to eligible heirs.
The third amendment introduces a penalty for employees taking voluntary retirement. It said if an employee takes voluntary retirement after 25 years of service, they will face a reduction in their pension. The pension reduction will be at a rate of 3%, which will apply from the date of retirement.
The maximum reduction has been capped at 20%.
The official notification of these amendments has been issued, and all ministries and divisions have been sent an office memorandum for implementation of these amendments.
