Federal Government Amends Pension Rules for Retired Employees and Armed Forces

The federal government has introduced significant amendments to the pension rules, setting the family pension period at 10 years for normal cases and 25 years for the special family pension, effective immediately for both federal employees and the armed forces.

Key Changes in the Pension Scheme

1. Special Family Pension:
   • The widow of a deceased retired employee will now receive a pension for 25 years.
   • Children of deceased retired employees who are disabled or have special needs will be entitled to a lifetime family pension.
   • This extension applies specifically to the families of martyred armed forces personnel, who will receive a special family pension with an additional 50% of the regular pension.
2. Normal Family Pension:
   • The family pension period for the surviving family of a deceased pensioner is fixed at 10 years.
   • However, if the pensioner’s child is disabled or special, the family pension will continue for life.
   • If the eligible child is a minor, the pension will be provided for 10 years or until the child turns 21, whichever comes later.
3. Retirement After 25 Years of Service:
   • Federal employees can now retire after 25 years of service, but their pensions will be reduced by 3% for every year remaining until the age of 60. This reduction will not exceed 20% of the total pension.
   • This rule will also apply to armed forces personnel who retire prematurely without completing the service required for their rank.

These amendments are based on the recommendations of the Pay and Pension Commission 2020 and aim to modernize and reform the pension system in Pakistan.