Karachi Matters Editor
The Finance Division has announced major changes to the Federal Employees’ Pension Rules based on the Pay and Pension Commission 2020’s recommendations. An official notification and office memorandum have been issued for immediate implementation across all ministries and divisions.
Key changes include:
General Family Pensions: Family pensions are now limited to 10 years for remaining eligible family members after a spouse’s death or disqualification. Disabled children will receive a lifelong pension, while other children will get it for up to 10 years or until they turn 21.
Special Family Pensions: Family pensions will be provided for up to 25 years if the receiving spouse dies or is disqualified. Disabled children will receive a lifelong pension, and there will be a 50% increase in the pension rate for armed forces and civil armed forces ranks. Pensions can be transferred to eligible heirs.
Voluntary Retirement Penalty: Employees who retire voluntarily after 25 years will face a 3% reduction in their pension from the retirement date, up to a maximum of 20%.
