ISLAMABAD: The federal government has decided to introduce major changes to the pension policy for government officers and employees, under which double pensions have been banned.
The Ministry of Finance has issued an official notification in this regard, according to which a complete ban has been imposed on government officers from drawing double pensions. Under the new policy, officers holding important positions will now be eligible to receive only one pension, and the annual increase will be applicable only to the first pension.
According to the notification, the pension will be calculated based on the last 24 months of service, whereas earlier this procedure was different. The aim of this change is to bring uniformity and transparency to the determination of pensions to avoid unnecessary financial burdens.
Moreover, the Pay and Pension Commission will review the basic pension every three years, making the pension system more effective and stable.
Ministry of Finance has implemented the recommendations of the Pay and Pension Commission 2020 with immediate effect. These recommendations include measures to modernize the pension calculation method, review additional benefits for officers, and reduce unnecessary expenditure from the national exchequer.
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The Finance Ministry’s announcement said that applying the new rules will save billions of rupees every year for the national treasury, this step has been taken by the government to maintain financial order and ensure the proper use of public funds.
According to the federal government, the current pension system for government employees and officers was putting a heavy burden on the national exchequer.
The tradition of taking double pensions and non-transparent calculation methods were wasting national resources. These reforms in the pension policy were necessary to address these problems.
A spokesperson for the Ministry of Finance stated that these changes are part of public sector reforms aimed not only at reducing the fiscal deficit but also at modernizing the pension system.
He said that these measures are an attempt to introduce a fair and transparent system for government employees, which will provide long-term benefits.
