Govt updates pension policy with new guidelines. The pension amount will be adjusted annually based on the average salary.
The Balochistan government has introduced significant updates to its pension policy, aligning it with the federal government of Pakistan framework. The revised policy aims to streamline pension disbursement and provide clarity on eligibility criteria.
According to a notification issued by the provincial finance department, the new guidelines state that family pensions will now be valid for 10 years. However, in cases where the deceased’s children are disabled, the pension will be granted for life. Additionally, children of deceased pensioners will be eligible to receive the pension until they reach the age of 21.
These updates are part of the government’s efforts to harmonize provincial policies with federal regulations and ensure continued financial support for families of retired or deceased government employees.
Federal Pension Reforms
The announcement follows the federal government’s recent changes to the Special Family Pension policy, limiting its eligibility to families of martyrs from the armed forces and civil armed forces. According to the Finance Division, families of martyrs will now receive the pension for a duration of 25 years.
In addition, the federal government introduced pension reforms on January 1 as part of conditions set by the International Monetary Fund (IMF). Under these reforms:
- Retired employees will receive a pension equivalent to their average salary over the last 24 months.
- The pension amount will be adjusted annually based on the average salary.
- The double pension system has been abolished. Retired employees returning to work can choose between their salary or pension, but not both.
- If both spouses were federal government employees, they will each receive separate pensions upon retirement.
A detailed office memorandum was issued to ensure consistent implementation of these reforms across all relevant departments.
These updates mark a pivotal shift in pension policies at both provincial and federal levels, aimed at ensuring fiscal sustainability while maintaining support for retired government employees and their families.
