No more multiple pensions

No more multiple pensions

The government of Pakistan implemented various new reforms in pension schemes. The decision is to eliminate multiple pensions ensuring that a government official will receive only one pension in Grade 17 and above.

Another thing added to the reforms, is when calculating the pension amount, the ad hoc pension allowance will be included as part of net pension without compounding. The pensioner will opt for a higher amount of pension.

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Finance Minister Ishaq Dar said that, people in Pakistan are currently receiving multiple pensions, he added, “I know people receiving three pensions”.

Salary or Pension

For people in Grade 17 and above employed, they will need to decide between receiving a salary or pension. The pension will be available for dependents for 10 years after the death of pensioners and their spouse.

He also said that the Federal government would have introduced a contributory pension fund to control pension expenditures, which he said had become unsustainable. The KP government has already introduced pension reforms.

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The rules and procedures for the fund would be finalised soon. The federal government had created a pension fund for the year 2023-24. Austerity measures would continue in the year 2023-24.

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