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Government Suggests 13 Changes to Pension Plan

Government Suggests 13 Changes to Pension Plan

The federal government has proposed 13 revisions to the pension scheme aimed at easing the financial burden on the national exchequer.

Sources indicate that under the first amendment, government employees would receive a pension equivalent to seventy percent of their salary from two years prior to retirement.

Read more: Government Introducing New Pension Scheme for Employees

The second amendment permits employees to opt for voluntary retirement after twenty-five years of service. The third amendment specifies that those opting for voluntary retirement at least three years before reaching sixty years of age would face a reduction in pension ranging from five to twenty percent annually.

The fourth amendment ties the annual pension increase to the amount received at the time of retirement. The fifth amendment treats the annual pension increment as a distinct entity. The sixth amendment mandates the Pay and Pension Commission to reassess the baseline pension every three years.

Under the seventh amendment, a pensioner’s family can receive the pension for up to ten years. The tenth amendment guarantees lifetime pensions for children of pensioners who are physically or mentally disabled. The eleventh amendment clarifies that individuals joining government service after retirement can opt for either a pension or a salary. The twelfth amendment ensures that a government employee can only receive a pension from one department if re-employed.

The thirteenth amendment stipulates that if both spouses are government employees, each will receive a pension upon retirement.