The caretaker Government has decided on pension reforms in light of the report from the Pay and Pension Committee.This draft is being prepared for the employees of Federal.
Under the new reforms, federal government employees will be eligible for a 70% pension based on the average pensionable service acquired during the last 36 months preceding retirement. The Establishment Division is concerned that this decision may cause anxiety among employees retiring in the last year of service. To address premature retirement concerns, penalties ranging from three to ten percent can be imposed for early retirement under the new reforms.
The Establishment Division argues that early retirement requests from some employees are genuine, so penalties should not be applied. The Division has suggested to the Finance Division that, to alleviate the burden of performance, retirement age should be increased from 60 to 62 years.
Other reforms include any increase in pension being applied to the pension determined at the time of retirement. For family pensions, eligibility will be valid for a maximum of ten years after the death of the pensioner. In the case of martyrs, this period will be extended to twenty years. If a child is disabled, the pension will be applicable throughout their life. Commission rates for commutation will be changed from 35% and 65% to 25% and 75%, respectively.
After retirement, in the case of reemployment, whether regular or contractual, a pensioner is entitled to only one pension or allowance. In a scenario where an employee is entitled to more than one pension, they can choose to receive only one pension.
Decisions regarding annual increases in pensions will be made in the light of inflation and the economy. However, the increase in any given year will not exceed ten percent.