The Finance Division has introduced three significant amendments to the Federal Employees’ Pension Rules, reducing the family pension to a period of 10 years following the death of a retired employee.
An official notification has been issued, and an office memorandum has been circulated to all ministries and divisions for immediate implementation.
The general family pension will now be limited to a maximum of 10 years for eligible family members upon the death or disqualification of a spouse. If the deceased pensioner has a disabled child, that child will receive the pension for life. For other eligible children, the pension will be provided for up to 10 years or until they reach the age of 21, whichever comes first.
In the case of special family pensions, if the pension-receiving spouse dies or is disqualified, family members will receive the pension for up to 25 years. For disabled children, the pension will be lifelong. Moreover, for all ranks in the armed forces and civil armed forces, the first pensioner will receive a 50% increase in pension benefits, which can then be transferred to eligible heirs.
The third amendment introduces a penalty for employees who choose voluntary retirement. Employees retiring after 25 years of service will face a 3% reduction in their pension from the retirement date. This reduction will apply to the monthly gross pension until the employee reaches 60 years of age, with a maximum deduction limit of 20%.
