- Web Desk
- 8 Minutes ago
Summary seeks to limit pension duration to 10-year after demise of retired employee
- Web Desk
- Oct 16, 2023
ISLAMABAD: A proposal has sought to amend Pension Fund 2023 with a suggestion to limit pension duration to 10-year for the heir(s) after the demise of a retired government employee.
According to the proposal, in the case of a retired employee’s child having disability, he/she will be entitled to the pension for an indefinite period.
Sources said that the Ministry of Finance has sent the proposal to the Prime Minister’s Office for approval.
The scheme proposes the family pension for the heir(s) of martyrs for a duration of 20-years.
According to the proposal, upon an employee’s retirement, their pension calculation will be based on the last 36 months’ eligible pensionable amount.
After the retirement, pensioners will receive an annual increment separate from the pensionable amount until the government reviews pensionary benefits.
The increment in the pension will be in line with the rate of inflation, with an increase of up to 10 per cent, and the government will also make adjustments in accordance with the inflation rate.
Government employees with 25 years of service can opt for early retirement, but an annual deduction of three per cent will be applied to the pension amount of such employees until they reach the age of superannuation.
In addition to this, retired employees can opt for a reduction of up to 25 per cent in their gross pension as per the government’s laid down terms and conditions.
After retirement, in the case of reemployment, employees will have the option to either retain their pension or receive the salary for their second employment.