Islamabad, the June, 2024 No. 9(3)R-6/2016:- In exercise of powers conferred under Regulation 4 of Civi § 15: Regulati i Service Regulations and in pureuance of Cabinet Decision dated i ee ; it i a e , in Sun it i8 pleased to approve the f inthe existing pension scheme we.f. 01.07 2004, Pv tne following amendments i. Calculation of Gross Pension Federal Government employees shall be entitled to a gross pension based on 70% of average pensionable emoluments drawn during the last 24 months of service prior to retirement. . Voluntary retirement penalties A Federal Government employee may opt for retirement after putting in 25 years of service; however, the employee shall be liable to a flat reduction fate of 3% per year in gross pension based on the number of completed months from the date of retirement to the date of superannuation. Such flat reduction in gross pension shall be capped at 20%. Provided that in cases of Armed Forces and Civil Armed Forces voluntary retirement penalties will apply only if retirement is sought/granted prior to the prescribed Rank Service. ili. Future increase methodology in pension a. The net pension calculated at the time of retirement will be termed as baseline pension. b. Any increase in pension shall be granted on baseline pension. ¢. Each increase shall be maintained as a separate amount until the time, the Federal Government decides to review and authorize any additional pensionary benefits. : d. Baseline pension will be reviewed by Pay and Pension Committee after every 3 years. Pi that the current pension of existing pensioners on the date of ‘issuance of these amendments shall be considered as baseline pension. Provided further that baseline pension is deemed to include restored _ commuted portion of pension as and when restored. Pension, after the death or ineligibility of the spouse, to remaining entitled family members for a maximum provided that;os cnamy EtOH oH@M sca sen In case of the entitled children, Ordi a e en, Ordinary Family” Pension’ sh. remain ad eee sien S4missible for 10 years or til the age of 21 years whichever V. Special Family Pension Special Family Pension, after the death or ineligibility of Spouse/first fecipient, shall be admissible to rennin Ae family members for 25 years after the death of ineligiblity of ‘spouse/first recipient. In case of disabled/Special Children of a pensioner, the Special Family Pension shall remain admissible for life of such children. Rate of such pension for eligible recipients is enhanced to 50% of last drawn pension admissible to the first recipient for all ranks of Armed Forces/Civil Armed Forces without min/max limits and transferable to all eligible heirs as per order prescribed in Rule 12 of Pension Regulations Vol-! (Armed Forces), 2010 vi. Pension in case of re-employment! appointment after retirement In an event where a pensioner of the Federal Government after the age of 60 years, is re-employed/appointed in public service after retirement whether on regular/contract basis or whatsoever mode of employment, the pensioner shall have the option to retain either his/her pension or to draw the salary of said employment during the currency of that employment vii. Multiple pensions In an event where a person becomes entitled to more than one pensions, such person shall only be authorized to opt to draw one of the pensions, provided that; viii. ii. Where an in-service Federal Government employee becomes entitled to a pension, such Federal Government employee shall not be eligible to receive such pension. The in-service/pensioner spouse shall be eligible for pension of his/her spouse in addition to his/her own pay/pension. Annual Increase in Pension Annual increase in pension shall be granted at 80% of average inflation rate for the last two years. For this purpose, the Year-on-Year ‘Consumer Price Index (GP!) as announced by State Bank of Pakistan shall be used as reference. 2 Existing instructions on pension shall stand amended to the extent of above amendments. The Manager (Abdul Waheed Memon) Deputy Secretary(R-Ill) Printing Corporation of Pakistan Press, Karachi.SECRET Copy No. F.No.9(3)R-6/2015 GOVERNMENT OF PAKISTAN FINANCE DIVISION SUMMARY FOR THE E.C.C. OF THE CABINET Subject: AMENDMENTS IN PENSION SCHEME In the Federal Government, Pension is a defined benefit and is currently admissible to the entitled employees and their family. Expenditure on account of pension is increasing day by day and is becoming unsustainable. 2h The Terms of References of Pay and Pension Commission-2020 (PPC- 2020) included that the Commission will review the current pension scheme. Accordingly, PPC-2020 has recommended amendments in pension scheme for existing pensioners / employees to curtail future increase in pension costs without compromising on the government's pension philosophy. Amendments to pension scheme were also accordingly announced in the budget speech for financial year 2023-24. 3. On the basis of recommendations of PPC-2020, Finance Division proposes certain amendments in the pension scheme for existing pensioners / employees as at Annex-I. 4. As per Regulation-4 (Annex-ll) of Civil Service Regulations (CSR), the Government of Pakistan reserves to themselves the right of changing the provisions in these Regulations regarding pay, allowance, leave and pension, from time to time at its discretion, and of interpreting in case of dispute. Summary was circulated to M/o Defence, Establishment Division and 5. lers may be Milo Interior for views and comments, the response of all these stakehold: perused at Annexclll, IV and V respectively. _ Interms of CSR-4, Finance Division proposes as under: