No more multiple pensions as govt initiates process for Grade-17 and above
Business
10-year limit introduced for dependents after the death of pensioner, his or her spouse
ISLAMABAD (Web Desk) – Finance Minister Ishaq Dar has said the government would eliminate multiple pensions for the government officials. Anyone being reemployed in Grade-17 or above would have to choose between the salary or the pension, he added.
The move comes as the government is trying to find loopholes for stop wastage of state resources, thus reducing the budget deficit. It is very common for influential government officials to get another job after their retirement but they continue receiving the perks and privileges associated with their status as a retired person.
It was in this context, Dar said high-profile people in Pakistan were currently receiving multiple pensions. “I know people receiving three pensions.”
Winding up budget debate in the National Assembly Sunday, the finance minister said the moves were part of the pension reforms introduced by the government which would come into effect gradually.
To begin with, he said, there would be only one pension for officials in Grade-17 and above in the first phase.
According to Dar, the ad hoc pension allowance will be included as part of the net pension without compounding when calculating the amount. The pensioner will opt for the highest amount of pension.
Describing the pension-related expenditure, the finance minister said the government had created a pension fund for which rules and procedures would be finalised soon. The total bill had reached Rs800 billion, he added.
However, one aspect of these reforms is questionable as the finance minister said the pension would be available for dependents for 10 years after the death of the pensioner and their spouse.
Reacting to his speech, a woman in a tweet said one of her friends, depending on her dead father’s pension, was a currently a university student and she would face serious financial problems because of the 10-year limit.
میری فرینڈ ہے ایک ابھی یونیورسٹی اسٹوڈنٹ ہے خود۔ والد کی پینشن ملتی ہے اسے لیکن والد کی وفات کو کافی عرصہ ہو گیا۔ بہت مشکل ہو جائے گی اگر دس سال والی بات درست ہے تو۔
— Humaira Khanum (@humairakhanum) June 24, 2023
Meanwhile, there are some other critics who say that the restriction on pension in case of reemployment after retirement should be applicable to Grade-20 or above as the ordinary pensioners can’t meet their needs with that paltry amount.
ریٹائرمنٹ کے بعد ملازمت پر پینشن رکنا صرف 20 گریڈ سے اوپر ہونا چاھئیے۔
— Et tu, Brute? (@kkabbasi) June 24, 2023
پینشن آپکی بعد از ریٹائرمنٹ تمام ضروریات پوری نہیں کر سکتی اس لئے سفید پوش افراد ساتھ نوکری بھی کرتے
This argument carries weight as we can notice many retired persons from the low-income groups – including the non-commissioned military men – working after their retirement for very limited salary, showing their financial status.
Moreover, people in many cases are retired through schemes like golden handshake when are hardly in late 40s or early 50s.
Although, the decision currently applies to Grade-17 and above only, one would have to see its effects on the low-income groups, including middle class.
