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Punjab Civil Servants Ordinance 2023: Pension and Gratuity Amendments

Notification regarding the Punjab Civil Servants (Amendment) Ordinance 2023, amending the Punjab Civil Servants Act, 1974.

The Punjab Civil Servants (Amendment) Ordinance 2023 is aimed at amending the Punjab Civil Servants Act, 1974. It introduces a “Defined Contribution Pension Scheme” and modifies section 12 of the Act. The ordinance is effective immediately upon publication.

No.Legis-13-20/2002(P-IX)/96.- The following Ordinance promulgated by Governor of the Punjab is hereby published for general Information:
Ordinance to amend the Punjab Civil Servants Act, 1974 (VIII of 1974) for the purposes hereinafter appearing.

It is necessary to amend the Punjab Civil Servants Act, 1974 (VIII of 1974) for the purposes hereinafter appearing.

Provincial Assembly of the Punjab is not in session and Governor of the Punjab is satisfied that circumstances exist which render it necessary to take immediate action.

In exercise of the powers conferred under clause (1) of Article 128 of the Constitution of the Islamic Republic of Pakistan, Governor of the Punjab is pleased to make and promulgate the following Ordinance:

  1. Short title and commencement.- (1) This Ordinance may be cited as the Punjab Civil Servants (Amendment) Ordinance 2023.
    (2). This Ordinance shall come into force at once.
  2. Amendment of section 2 of Act VIII of 1974.- In the Punjab Civil Servants Act, 1974 (VIII of 1974), for brevity referred to as ‘the Act’, In section 2, In subsection (1), after clause (b), the following shall be inserted:
    “(ba) ‘Defined Contribution Pension Scheme’ means the pension scheme stipulated under subsection (2) of section 18;”.
  3. Amendment of section 12 of Act VIII of 1974.- In the Act, In section 12, In subsection (1), for clause (I), the following shall be substituted:

“(i) on such date after he has completed twenty years of service qualifying for pension or twenty years of service participating in Defined Contribution Pension Scheme, as the case may be, or other retirement benefits as the competent authority may, in public interest, direct; or”.

  1. Substitution of section 18 of Act VIII of 1974.- In the Act, for section 18, the following shall be substituted:

“18. Pension and gratuity.- (1) On retirement from service, a civil servant appointed before the commencement of Punjab Civil Servants (Amendment) Ordinance 2023 shall be entitled to receive such pension or gratuity as may be prescribed:

Provided that in the event of death of such civil servant, whether before or after retirement, his family shall be entitled to receive such pension, or gratuity, or both, as may be prescribed:

Provided further that no pension shall be admissible to such civil servant in case he is dismissed or removed from service for reasons of discipline but Government may sanction compassionate allowance to such servant, not exceeding two-third of the pension or gratuity, which would have been admissible to him if he had been by bodily or mental infirmity incapacitated for further service on the date of such dismissal or removal:

Provided further that if the determination of the amount of pension or gratuity admissible to such civil servant is delayed beyond one month of the date of his retirement or death, he or his family, as the case may be, shall be paid provisionally such anticipatory pension or gratuity as may be determined by the prescribed authority according to the length of service of such civil servant which qualifies for pension or gratuity, and any overpayment consequent upon such provisional payment shall be adjusted against the amount of pension or gratuity finally determined as payable to such civil servant or his family.

(2) A person appointed or regularized, regardless of the effective date of regularization in case of the latter, as civil servant on or after the commencement of Punjab Civil Servants (Amendment) Ordinance 2023 shall participate in a Defined Contribution Pension Scheme as may be prescribed:

Provided that in the Defined Contribution Pension Scheme, the Government, as employer, and a civil servant, as employee, shall contribute to pension account, and such contributions shall be invested in a pension fund until retirement of the employee and the accumulated balance in the pension account, at the time of retiring, is withdrawn or invested further to generate monthly income during post retirement phase, subject to exceptions as may be prescribed.”.

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Punjab Civil Servants Ordinance 2023: Pension and Gratuity Amendments
Punjab Civil Servants Ordinance 2023: Pension and Gratuity Amendments
Punjab Civil Servants Ordinance 2023: Pension and Gratuity Amendments
Punjab Civil Servants Ordinance 2023: Pension and Gratuity Amendments

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