Reforms approved: Families will get pension only for 10 years

The much-talked-about pension reforms have been approved by the government and include measures such as freezing of several pensions and provision of pension for families only for 10 years.

The government will calculate the gross pension based on the average of 70 per cent of the salary of the last 24 months before retirement. This summary was sent to Ministry of Defence, Establishment Division and Ministry of Home Affairs for 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 in the pension scheme to prevent future increases in the cost of existing pensions of existing 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 in the Pension Scheme for existing pensioners/employees.