ISLAMABAD – The federal government has recently introduced significant changes to the pension policy for government officers and employees, aiming to alleviate the financial strain on the national treasury.
Ban on Double Pensions for Retired Government Officers
Under the newly revised pension policy, retired government officers will no longer be allowed to receive double pensions. This measure has been implemented to streamline the pension system and reduce unnecessary financial burdens on the government.
| Before Reform | After Reform |
|---|---|
| Double pensions allowed | Ban on double pensions |
| Higher financial burden on government | Reduced burden on treasury |
Pension Policy for Senior Government Officers: Only One Pension Allowed
As part of the reforms, government officers holding high-ranking positions will be permitted to receive only one pension. The annual increase in pension benefits will apply exclusively to the primary pension, helping maintain fiscal discipline and ensuring a fairer allocation of resources.
| Before Reform | After Reform |
|---|---|
| Multiple pensions allowed | Only one pension allowed for senior officers |
| Annual pension increase applied to all pensions | Annual increase applies to only primary pension |
Revised Pension Calculation Based on Last 24 Months of Service
The new pension policy mandates that pensions be determined based on the final 24 months of an officer’s service. This adjustment is designed to more accurately reflect the officer’s most recent salary, ensuring that pensions are calculated fairly and in line with current compensation trends.
| Before Reform | After Reform |
|---|---|
| Pension calculation based on average salary | Pension calculated based on last 24 months of service |
| May not reflect recent salary changes | Reflects most recent salary for accuracy |
Triennial Review of Basic Pension by the Pay and Pension Commission
In an effort to keep pension rates aligned with inflation and economic changes, the government has directed the Pay and Pension Commission to review the basic pension every three years. This move ensures that pension amounts remain relevant and adequate over time.
| Before Reform | After Reform |
|---|---|
| Infrequent pension reviews | Pension review every 3 years |
| Static pension rates | Rates aligned with inflation and economic changes |
Implementation of Pay and Pension Commission 2020 Recommendations
The Ministry of Finance has immediately enacted the recommendations put forth by the Pay and Pension Commission 2020. These reforms are expected to bring greater efficiency to the pension system, ultimately benefiting both the government and its employees.
| Before Reform | After Reform |
|---|---|
| Slow pension system updates | Immediate implementation of 2020 recommendations |
| Government employees face outdated pension rates | Timely updates for better pension benefits |
