I am providing information about the purported New Pension Rules for Government Employees in Pakistan. It’s important to note that there is no official documentation to substantiate these rules, and they are solely based on rumors.
The rules mentioned in various news sources may or may not represent the actual pension regulations. Some of the facts outlined below were also addressed during the discussion of new pension reforms in 2023, as mentioned in the concluding budget speech. Let’s delve deeper into this matter.
Some Facts of New Pension Rules for Government Employees of Pakistan
Many of you may have encountered numerous rumors, whether spoken or written, regarding upcoming changes to pension regulations. If these changes are implemented, they could possibly strip affected pensioners of several benefits that are presently available to them.
These proposed amendments, which are seen as unfavorable, include:
- Only one pension will be permissible; multiple pensions will not be granted.
- Pension increments will be calculated based on the Net Pension, as opposed to the current practice of considering previous years’ increase amounts as well.
- Family pension will only be granted for a period of 10 years, rather than for the entire lifetime.
- Individuals will be entitled to either a salary or pension upon re-employment, but not both. Additionally, a certain percentage of pensions may be deducted if it is sought before superannuation.
- Contributory Pension subscription will be deducted from the salary.
- Retirement benefits will not be provided for individuals with less than 10 years of service.
Premature to Offer Comments
It would be premature to provide feedback on the proposed amendments at this time. Once official notifications for the rule amendments are issued then comments on a point-by-point basis will be offered.
Also Read: SED Announces Amendments in Retirement Rules
Regarding the legal implications of these disadvantageous amendments, it can be stated that the new or amended rules will apply to government servants who:
- Choose to adopt the amended rules, and
- Enter into service after the rules have been amended.
Enforcing the amended rules on pensioners who are already receiving pensions on the effective date of the rule amendments would not be legally justifiable.
For instance, if the new or amended rules are set to take effect from January 1, 2024, pensioners as of December 31, 2023, will continue to receive pensions in accordance with the rules in place as of that date.
The opinion expressed in paragraph 4 above is based on Section 3(2) of the Civil Servants Act 1973 (Act No. LXXI of 1973), which is reproduced below for reference.
Similar protection would be extended to provincial civil servants.
TERMS AND CONDITIONS OF SERVICE OF CIVIL SERVANTS
- A civil servant’s terms and conditions of service are determined by the regulations outlined in this Act and the associated rules.
- The terms and conditions of service for any individual covered by this Act cannot be altered to their detriment.
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