Punjab govt sheds light on civil service pension reforms

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LAHORE: The Punjab government has issued a widespread explanation for the implementation of its revised pension rules for government employees, which aims to remove administrative confusion and ensure uniform implementation after reports of significant changes in the policy last year.

With this news, the direction of Secretary Finance Mujahid Sheikh has been sent to all major administrative offices, including Additional Chief Secretary South Punjab, provincial secretaries, commissioners, deputy commissioners, heads of affiliated departments, Lahore High Court Registrar, Punjab and other sessions.

According to the directive, the rules of the amended pension will apply only to the government employees who retire or die on December 2, 2024 or after or after. Pensioners who retire or die before this cut off date will continue to gain pension benefits under previous rules. This distinction has been introduced to protect the current pensioners, while establishing a clear and permanent framework for future issues.

One of the most fruitful changes is a new explanation for family pension eligibility. Under the revised rules, the family pension is completely limited to the spouse of the deceased employee and will be limited to a maximum period of ten years, or in the case of a widow until the re -marriage, whatever comes first. However, this supply is not former. The spouse of civil servants who have died before December 2, 2024 will continue to receive family pensions under the rules of the time without the limits of time. In addition, the latest rules eliminate the ability of other relying, such as sons, unmarried daughters, widowed daughters, and unmarried sisters, once the spouse is disqualified after effective history.

The notification further clarifies that the fixed factor for the implementation of the new rules will be a date for pension. After the date of implementation, pensions will be ruled under the revised rules and regulations, while the pre -entitled entities will follow the previous structure. The purpose of this policy is to ensure administrative consistency and prevent the delay from affecting the pension rating.

Another important amendment is related to a pension payable. Under the new procedure, the average emolument costs used for pension counts will be specially based on basic salary, including personal salary, such as July 1, in each of the last three financial years before retirement. Earlier, acceptable allowances such as fantastic increase, special salary, qualification salary, technical salary, and senior post allowance will no longer be included in the pension base. The change will affect retirees between December 2, 2024 and July 1, 2025, whose pension will be calculated using a salary from July 1, 2022. July 1, 2023; And July 1, 2024.

In addition, the explanation connects the annual increase in pensions to 50 % of the ad hoc relief allowance (ARA) given during each financial year. If no RA is approved for a particular year, there will be no increase in pensions. The Finance Department has clearly stated that in the past years, especially in 2011, 2015, 2022, 2023, and 2024 – under the new government, frustration will not be applied to those who retire. This indicates a change in the point of view, where in the future, pension adjustments are strictly linked to the budget policy and will no longer be affected by the prejudiced.

The department has also outlined the treatment of government employees in the retirement process. Individuals for retirement (LPR) for retirement (LPR) will be subject to fully revised rules, or after retiring on 2 December 2024, or after retiring on December 2, 2024. This includes changes to the procedure for calculating overall pensions, applying revised factors, and tight standards for family pension eligibility.

To promote consistency, the government has simplified the application of the age -based deficiency factor used in the pension calculation. Now it will be determined on the basis of the last year of this age, in which additional months or days will be ignored. For example, a government employee aged 58 and 11 months will be considered at the age of 58, which will apply a four percent reduction. The purpose of this simplicity is to reduce confusion in the implementation process and ensure uniformity in matters.

Finally, the Treasury Department has encouraged all administrative authorities to send back to the department for interpretation of any vague or extraordinary cases. This explanation is a part of the government’s wider reform efforts for public sector employees to rationalize pension responsibilities, improve financial planning, and transfer more forecast, to transfer to public sector employees, transfer to a government -based retirement system.

It is expected that the latest rules will significantly affect retirement planning for Punjab government employees and they are seen as a fundamental step to modernize the province’s pension framework as per the long -term financial stability goals.