Govt Bans Multiple Pensions And Limits Payouts to Family Members to 10 Years

The federal government has banned multiple pensions and limited pension paychecks to family members to 10 years. Under the new measures, the gross pension will be calculated based on 70% of the average pensionable emoluments drawn during the last 24 months of service prior to retirement. This decision aims to address the unsustainable rise in pension expenditures, reported a national daily. The Pay and Pension Commission-2020 (PPC-2020) was tasked with reviewing the current pension scheme and proposed amendments to curtail future increases in pension costs. These amendments were announced in the budget speech for the financial year 2023-24. The Finance Division proposed several changes based on the PPC-2020 recommendations. According to Regulation-4 of the Civil Service Regulations (CSR), the government reserves the right to amend pay, allowance, leave, and pension provisions as necessary. The proposed changes were circulated to the Ministry of Defence, Establishment Division, and Ministry of Interior for feedback. The Finance Division’s proposals include the following key amendments effective from July 1, 2024: A pension fund will be established using savings from these reforms, and a contributory scheme for new entrants will start on July 1, 2024.