Shocking news for the government employees
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The Ministry of Finance in Islamabad has compiled a summary outlining significant alterations to the pension regulations, a necessary step for the caretaker government to meet one of the stringent conditions imposed by the International Monetary Fund (IMF).
The proposed changes in pension rules will predominantly impact civil servants working within the federal government. These modifications are crafted in alignment with the recommendations set forth by the Pay and Pension Commission in 2020.
One key recommendation within the summary suggests that future pensions will no longer be calculated based on the recipient's final salary. Instead, the new approach involves determining pensions based on the average of the individual's salary from the preceding three years.
Furthermore, the proposed rules advocate a reduction in the commutation portion, allowing only 25 percent to be availed by pensioners. To continue receiving a pension or salary, a pensioner must re-enter employment in the government sector.
Additionally, pension increases will be tethered to the annual inflation rate, with ad hoc relief provided when inflation surpasses 10 percent; this ad hoc relief will be rescinded once inflation falls below 10 percent.
The suggested regulations also stipulate that any annual increments in pension will be constrained to the original pension amount. In the unfortunate event of a pensioner's demise, their family members will receive a pension for a duration of ten years, though the families of martyrs will be entitled to a pension for twenty years. Disabled and special children of martyrs will receive lifelong pensions.
Notably, the summary highlights that a pensioner can claim only one pension, precluding the possibility of dual pensions or receiving the pension of a relative.
