The interim federal government in Islamabad has opted for reforms in the government pension system as a measure to curb the escalating expenditure.
This decision follows the recommendations of the Pay and Pension Committee’s report, aiming to address the increasing costs associated with salaries and pensions. According to the proposed reforms, federal government employees will now receive their gross pension based on 70% of the benefits accrued during the last 36 months of their service prior to retirement.
Any adjustments to the pension amount will be applied to the settled pension at the time of retirement. Additionally, family pension benefits will be granted to surviving family members for a maximum duration of ten years after the demise of the entitled spouse, extending to 20 years if a child is disabled, providing a lifelong pension in such cases. Moreover, individuals holding two or more employments post-retirement, whether on a regular or contractual basis, will be eligible for either pension or salary, not both.
