Pakistan Pension Reforms 2025-26: New Time Limit for Family Pension Claims After Death

The federal government has announced significant changes to the pension system in the 2025-26 budget, introducing a fixed time limit for families to claim pensions after a retired employee’s death. This reform targets improved efficiency and reduced fiscal burden on the national exchequer.

Key Changes in Pension Policy

• Deadline Implementation: Mandatory application window for family pensions
• Scope: Applies to federal and provincial government employees
• Grandfather Clause: Existing pensioners unaffected; only impacts new claims
• Documentation: Death certificate, CNIC, relationship proof required

“The old practice of late or open-ended pension applications has been discontinued,” confirms the Finance Division.

Why This Reform Matters

The move aims to:

• Prevent fraudulent/delayed claims
• Streamline pension disbursement
• Reduce Rs.1.2 trillion annual pension burden
• Protect genuine beneficiaries through simplified procedures

Claim Process & Requirements

Critical FAQs

Q: What’s the exact deadline period?
A: Official notification pending, but likely 90-180 days post-death.*

Q: Will widows lose pensions if late?
A: Yes, unless exceptional circumstances are proven.

Q: Are military pensions affected?
A: No – currently covers civilian employees only.

Q: How to speed up processing?
A: Submit complete documents to Treasury offices digitally or in-person.