ISLAMABAD – The federal government has revised the pension rules to alleviate the growing burden of pension payments on the national exchequer as it has set a 10-year period for family pensions after the death of retired employees.
The Ministry of Finance has issued three office memorandums, detailing major amendments to the pension scheme based on the recommendations of the Pay and Pension Commission 2020.
The first office memorandum states that the duration of special family pensions for martyrs has been set at 25 years. However, if the deceased pensioner’s family includes a disabled or special child, the family pension will be for life.
The memorandum further explains that there will be an increase of up to 50% in family pensions for the Armed Forces and Civil Armed Forces. This increase will apply to the last pension amount received by the pensioner and will be applicable to all ranks. This increase will be transferable to all eligible heirs without any minimum or maximum limits, it said.
The second office memorandum issued by the finance ministry explains that the duration for regular family pensions has been set at 10 years. However, if the deceased pensioner’s family includes a disabled or special child, it will get the pension for life.
If the eligible child is young, the pension will be provided for 10 years or until the child reaches the age of 21, whichever period is longer.
The third office memorandum imposes a penalty for voluntary retirement. Voluntary retirement can only be taken after completing 25 years of service, and the pension will be reduced by 3% annually for the remaining period up to the retirement date or the prescribed retirement age, with a cap of 20% on the reduction.
It says penalties related to early retirement will also applicable to the Armed Forces and Civil Armed Forces if voluntary retirement is taken before the prescribed rank service period is completed.
