The annual increase in pensions will be equivalent to 80 percent of the average inflation rate over the previous two years.
ISLAMABAD: In a move to relieve the burden on the national exchequer, the federal government proposed 13 amendments to the pension scheme as part of the Budget 2024-25.
A draft of the proposed changes to the Government Employees Pension Scheme has surfaced, stating that starting two years before to retirement, employees will get a gross pension equal to 70% of their pay.
The modifications give employees the option to leave earlier than previously permitted by introducing options for voluntary retirement after 25 years of service.
With this option, annual pension deductions are made on a progressive schedule, starting at 3 percent and going up to 20 percent until the age of 60.
The revisions state that the pension increase each year will be based on the pension obtained at the time of retirement and that it will be computed as a separate amount. Every three years, the Pay and Pension Commission will evaluate the base pension.
The family of the dead employee will get pension benefits for a period of 25 years after receiving an extension of up to 10 years.
In the meanwhile, in the event of a disability, pensioners’ children will receive lifetime payments.
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People who work for the government again after retirement would be paid a wage or a pension under the proposed changes to the pension plan.
Furthermore, only one department will be able to issue the pension if the retiree finds a new job after retirement.
If a husband-and-wife work for the government, they will both be qualified for a pension upon retirement.
The annual increase in pensions will be equivalent to 80 percent of the average inflation rate over the previous two years.
The increase in pensions due to inflation will be based solely on the current statistics provided by the State Bank of Pakistan (SBP).
