Finance Ministry drafts summary of reduction in civil servant pensions

The Ministry of Finance has prepared a summary of the changes in the pension rules in preparation for the caretaker government to fulfil another strict condition of the International Monetary Fund (IMF), 24News HD TV channel reported on Tuesday.
According to the sources, the Ministry of Finance has prepared this summary to get approval for changes in pension rules from the caretaker government before negotiating with the IMF.
The sources said the change in the pension rules will be applied to the civil servants of the federal government and these amendments have been prepared in the light of Pay and Pension Commission's 2020 recommendations.
According to the recommendation of the summary, the pension will not be given on the basis of the last salary in future and under the new procedure, the pension will be determined on the average of the salary of the last three years.
Under new proposed rules, only 25 per cent commutation will be given to the pensioner. A pensioner will receive only a pension or salary if he or she is employed again in the government sector While the increase in pension will only be linked to annual inflation and if inflation exceeds 10% in any year, ad hoc relief will be provided. And, this ad hoc relief will be abolished after the rate of inflation is less than 10 per cent.
The proposed rules also said that annual increases in pension will be limited to the original pension only and in case of the death of a pensioner, his family members will get a pension for 10 years only but the families of martyrs will get a pension for 20 years.
Disabled and special children of martyrs will get lifelong pensions.
As per the summary, the pensioner will be able to take only one pension, not the other [double] pension and a pensioner will not be able to take the pension of his relative too.

Reporter: Waqas Azeem