According to new Pension Reforms in Budget 2023-24, All Officer working in Grade 17 ( BPS-17) and above are not eligible for multiple Pensions in his life. Now the retired employees from these scales may receive only one pension. According to pension reforms, the retired employee also eligible for Pension or current Job Salary which one he liked.
Mostly Government employees are working in different departments after their retirement from old Job. They taking the Salary from new office and Pension from old department. So Mr. Ishaq Dar Finance Minister Pakistan accept the condition imposed by IMF for next loan.
Many Reforms initiative were taken in Pakistan Budget 2023-24, Some of important initiative about Pensioners are elaborate here.
PENSION REFORMS BUDGET 2023-24
1. Discontinuation of Multiple Pensions (Officers)
a. Previous Rule.
If a person was re-employed on a pensionable job after retirement. He was entitled pension from both the departments. On his death, his family was entitled family pension (75%) both pensions. In some cases, more than two pensions were given, e.g. A widow getting 2 pensions of husband and one pension of father (after death of mother)
b. New Rule.
Only one pension is entitled. Employee has the option of holding higher one and seconder all others.
2. Pension Succession
a. Previous Rule.
On death of pensioner, his spouse is entitled 75% family pension. On death of spouse, same is transferred to unmarried I widow I divorced daughter for life / re-marriage.
b. New Rule.
Unmarried / widow / divorced daughter will get family pension for only 10 years.
3. No Compounding Increase of Pension
a. Previous Rule
(1) Every year, increase is announced on drawing pension.
(2) On 1st Year, if pension is 10,000, then 10% increase is 1,000 and pension becomes 11,000.
(2) Next year, 10% increase is on 11,000, increase is 1,100 and pension
becomes 12,100.
b. New Rule
(1) No compounding. Increase will be given on gross pension (GP) worked out at time of retirement.
(2) Pensioner retd in 2016 and drawing pension now is Rs 111,185 had GP Rs 42,227 (almost 1/3rd) increase will be on GP.
4. Contributory Pension
a. Previous Rule.
Govt was bearing all expenses.
b. New Rule.
During service, deductions from pay will be made to give pension.
5. Either Pay or Pension
a. Previous Rule.
Re-employed govt servants were getting pay of job and pension of previous service, both.
b. New Rule
(1) Either get salary from new job, or get pension.
(2) Mostly, armed forces personnel effected, who retire at early age.
Moral. After retirement, go for business, not for job.
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