ISLAMABAD: Pakistan’s federal government has set a 10-year duration for family pensions after the death of retired employees.
Additionally, family pensions for armed forces and civil armed forces personnel will be increased up to 50 per cent.
Under the new provision children of deceased retired employees who are disabled would be entitled to receive a lifetime pension.
The amendments were made to the Pay and Pension Commission of 2020, extending the time period of family pensions for martyrs to 25 years.
Additionally, family pensions for armed forces and civil armed forces personnel were raised up to 50 percent, with the increase based on the last pension received by the pensioner.
Additionally, conditions for voluntary retirement have also been revised under which those retiring early will face a 3 per cent cut in their pension for each year they retire before the official retirement age, based on the remaining tenure until that age.
These amendments are made to ease the escalating financial strain on the federal pension system. Last year, pension payments amounted to Rs821 billion, with this year’s bill exceeding Rs1 trillion and projected to touch Rs1.166 trillion next year. By 2026-27, pension expenditures are expected to increase to Rs1.341 trillion.
