ISLAMABAD: The Ministry of Finance has announced significant updates to the pension policy, according to a new notification issued by ARY News.
The key changes include:
- Family Pension Limit: Family pensions will now be limited to 10 years. After the pensioner’s death, only legal heirs can receive the pension transfer.
- Spousal Pension: The spouse of a deceased pensioner will continue to receive pension payments for 10 years. If the deceased pensioner had a disabled child, that child will be eligible for a lifetime pension.
- Early Retirement Deduction: To discourage early retirement, a 3% deduction will be applied to pensions for those retiring before the age of 60. For civil armed forces personnel, the deduction will be 20%.
These reforms follow the recent salary and pension increases announced in the Budget 2024-25. The adhoc relief allowance for government employees up to grade-16 has been raised by 25%, and for those from grade-17 to grade-22 by 20%. Additionally, a 15% increase in pensions for federal employees was also included.
The Finance Division emphasized that the President has approved an Adhoc Relief Allowance 2024 for all federal government employees, including armed forces personnel and contract staff.