Pensions go fully digital under new rules

ISLAMABAD:

The federal government has introduced a new digital pension system under which pension payments will be made exclusively through the system, while pensioners will be required to complete digital verification through NADRA every six months.

The Ministry of Finance has issued new rules abolishing the previous paper-based pension verification process. Pensioners will now be able to complete verification through the NADRA Pak ID app or authorised NADRA centres.

Under the new system, pension payments will be transferred directly into pensioners’ bank accounts. The existing March and September verification schedule has also been discontinued. Banks will no longer require pensioners to provide biometric verification or life certificates.

According to the new rules, pension accounts will not be declared dormant solely because verification has not been completed. However, pension payments will be suspended if a pensioner fails to complete digital verification for six months.

The new rules aim to fully digitise the pension payment and verification process and simplify the system by replacing the previous paper-based procedure with digital verification.