LAHORE: The Punjab government has issued a notification amending pension rules for government employees, introducing stricter conditions for voluntary and compulsory retirement.
The Finance Department Punjab made the changes under the Punjab Civil Servants Act, 1974. The amended Punjab Civil Services Pension Rules have come into immediate effect.
Key change in voluntary retirement
The most significant amendment relates to voluntary retirement.
Previously, a government employee could seek retirement after completing 25 years of service, even if they were under 55 years of age.
However, under the new rules, an employee must now fulfill two conditions to opt for voluntary retirement:
Complete at least 25 years of qualifying service
Attain 55 years of age
Importantly, whichever condition is fulfilled later will apply.
For example, if an employee completes 25 years of service at the age of 52, they will not be eligible for retirement. They must wait until they turn 55.
Changes in compulsory retirement
The government has also clarified rules regarding compulsory retirement.
An employee must complete at least 20 years of qualifying service before the government can order compulsory retirement in certain cases.
Similarly, matters related to misconduct or corruption will be reviewed in the context of completing 20 years of service.
Pension calculation updated
Amendments have also been made to Chapter IV of the pension rules to align pension calculations with the new framework.
The notification states that pension benefits for both voluntary retirement (after 25 years of service and 55 years of age, whichever is later) and compulsory retirement (after 20 years of service) will be granted under the revised rules.
Officials say the policy aims to regulate early retirements and ensure financial discipline in the pension system.
