ISLAMABAD: The much-talked-about pension reforms have been approved by the government and include measures such as freezing of several pensions and provision of pensions for families only for 10 years.
The government will calculate the gross pension based on an average of 70% of the salary of the last 24 months before retirement.
This summary was sent to the Ministry of Defence, Establishment Division, and Ministry of Home Affairs for perusal and comments.
According to the summary approved by the ECC, under the chairmanship of the Finance Minister, the recently approved summary states that pension is a benefit that is available to deserving employees and their dependents but the expenditure in this regard. are increasing day by day and becoming unstable.
The Pay and Pension Commission 2020 terms of reference included that the government will revise the existing pension scheme.
Similarly, the PPC 2020 has recommended amendments to the pension scheme to prevent future increases in the cost of existing pensions of pensioners and employees without compromising on the flow of government pensions.
These proposals were also presented in the Budget Speech 2023-24. Based on the recommendations of PPC – 2020, the Finance Division proposes some amendments to the Pension Scheme for existing pensioners/employees.
