The Punjab Finance Department has issued a formal notification announcing significant changes to pension rules for government employees. The amendments introduce new conditions for voluntary and forced retirement.
Under the revised pension rules, employees opting for voluntary retirement must complete 25 years of qualifying service and meet a minimum age requirement of 55 years. Voluntary retirement will now be granted based on “25 years of service or 55 years of age,” whichever occurs later.
For cases of forced retirement, pension benefits will follow the new rules after 20 years of qualifying service. The amendments also update provisions for pension eligibility in cases of corruption or misconduct. Completion of qualifying service is now a mandatory condition in such cases.
According to the Finance Department, the changes are intended to improve transparency and discipline in the pension system. The notification states that the amendments take effect immediately.
The revisions also address the situation of retired government employees who are rehired. Earlier, the federal government allowed retirees rejoining service to draw both salary and pension simultaneously. The new office memorandum withdraws notifications issued on April 22, 2025, and June 19, 2025, effectively updating the previous rules.
Previously, retirees above the age of 60 had to choose between receiving a pension or drawing a salary when reappointed to government service. This restriction was part of broader pension reforms aimed at reducing growing pension liabilities.
Officials have circulated the new office memorandum to all federal ministries and divisions. The updates are expected to streamline pension administration and provide clarity for both retired and active government employees.
Analysts say the revised pension rules will ensure fairness in retirement benefits and reduce misuse of government funds. Employees are advised to familiarize themselves with the changes to understand eligibility requirements and the impact on their retirement plans.
The Punjab government’s amendments mark an important step in modernizing the pension system and aligning retirement policies with fiscal responsibility and transparency.
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