Pension Increases Discontinued for Future Retirees in Punjab

Pension Increases Discontinued for Future Retirees in Punjab

Introduction

The Government of Punjab has made a significant decision to discontinue pension increases for future retirees, effective immediately. This move aims to streamline pension expenditure and ensure fiscal sustainability.

New Pension Rules
This notification issued by the Punjab Finance Department has amended the Punjab Civil Services Pension Rules. According to these amendments, a new system of deduction in pension on voluntary retirement has been introduced, under which there will be a deduction of 2% at the age of 59, 4% at 58, 6% at 57, 8% at 56, and 10% at 55. A new formula has been given for the calculation of pension, in which the average basic salary will be multiplied by the years of service (maximum 30 years) and divided by 7300, and an ad hoc relief of 50% will be included in the annual pension.

The family pension rules have also been changed, according to which family pension will be given only for 10 years or until remarriage. If the wife or husband is not present, a lifetime pension will be given, and if a government employee has more than one wife, the pension will be divided equally among all the wives. In addition, the new rate for deduction of civil pension has been fixed at 25%, which was earlier expressed as “half”. These amendments are effective immediately.

Key Points

• Discontinued Increases: The following pension increases will no longer be applicable to retirees after the issuance of this letter:
  • Increase as per Para 12(i) of FD.PC.2-1/2011, dated 11.07.2011
  • Increase as per Para 1 of FD.SR.III-4-259/2015(A), dated 23.07.2015
  • Increase as per Para 1 of FD.SR.III-4-160/2021, dated 21.07.2022
• Existing Rules Modified: All existing rules, orders, notifications, circulars, and instructions on the subject have been modified accordingly.

Summary of Discontinued Pension Increases

FAQs

Q: Will existing pensioners be affected by this decision?

A: No, this decision only applies to future retirees. Existing pensioners will continue to receive their pensions according to the previous rules.

Q: Why has the government decided to discontinue these increases?

A: The government aims to streamline pension expenditure and ensure fiscal sustainability.

Q: What are the implications of this decision for future retirees?

A: Future retirees will receive lower pensions compared to what they would have received under the previous rules.

Conclusion

The Government of Punjab’s decision to discontinue pension increases for future retirees is a significant step towards fiscal prudence. While it may impact the retirement benefits of future government employees, it is necessary for long-term financial stability.

نئے پنشن قوانین
پنجاب فنانس ڈیپارٹمنٹ کی جانب سے جاری کردہ اس نوٹیفکیشن میں پنجاب سول سروسز پنشن رولز میں ترامیم کی گئی ہیں۔ ان ترامیم کے مطابق، والنٹری ریٹائرمنٹ پر پینشن میں کٹوتی کا نیا نظام متعارف کرایا گیا ہے، جس کے تحت 59 سال کی عمر پر 2%، 58 سال پر 4%، 57 سال پر 6%، 56 سال پر 8%، اور 55 سال پر 10% کٹوتی ہوگی۔ پینشن کی کیلکولیشن کے لیے ایک نیا فارمولہ دیا گیا ہے، جس میں اوسط بنیادی تنخواہ کو سروس کے سالوں (زیادہ سے زیادہ 30 سال) سے ضرب دے کر 7300 پر تقسیم کیا جائے گا، اور سالانہ پینشن میں 50% ایڈہاک ریلیف شامل ہوگا۔

فیملی پینشن کے قوانین میں بھی تبدیلی کی گئی ہے، جس کے مطابق فیملی پینشن صرف 10 سال یا دوبارہ شادی تک دی جائے گی۔ اگر بیوی یا شوہر موجود نہ ہوں تو لائف ٹائم پینشن دی جائے گی، اور اگر کسی سرکاری ملازم کی ایک سے زیادہ بیویاں ہوں، تو پینشن تمام بیویوں میں برابر تقسیم کی جائے گی۔ علاوہ ازیں، سول پینشن کی کٹوتی کے لیے نئی شرح 25% مقرر کی گئی ہے، جو پہلے “آدھا” کے طور پر بیان کی جاتی تھی۔ یہ ترامیم فوری طور پر نافذ العمل ہیں۔