Govt notifies major pensions reform

In a major reform in the government's pensions scheme, the finance ministry issued three office memoranda on Tuesday to notify the new criteria on the recommendation of the Pay and Pension Commission 2020.

According to the documents available with The Express Tribune, the federal government fixed the period of family pension at 10 years after the death of the retired employee, however, in case of a special child, the family pension would continue for life. The period of special family pension was fixed at 25 years.

The move aimed at reducing the mounting burden of the pensions bill. According to the new amendments, 25 years of service would be mandatory for voluntary retirement before the age of superannuation.

The first office memorandum is about the Special Family Pension. It stated that period of family pension for martyrs had been increased to 25 years. However, in case the child entitled to family pension of the deceased pensioner was disabled or a special child, would receive the family pension for life.

The office memorandum further stated that the family pension for the armed forces and civil armed forces had been increased by 50%. This increase would be on the last pension amount received by the pensioner. This increase would apply for all ranks of armed forces and civil armed forces.

In the second office memorandum by the finance ministry fixed the term for the family pension of the minor at 10 years.