The federal government has introduced significant reforms to its pension scheme, issuing new guidelines aimed at addressing the rising pension bill. On Tuesday, the finance ministry released three office memoranda based on the recommendations of the Pay and Pension Commission 2020.
Under these new rules, the family pension period has been set at 10 years following the death of a retired employee. However, if the deceased has a special child, the pension will continue for the child’s lifetime. For special cases, such as martyrs, the family pension will now last for 25 years.
The reforms also introduce stricter requirements for voluntary retirement, making 25 years of service mandatory before retirement is possible before reaching the superannuation age.
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One of the major changes is a 50% increase in family pensions for members of the armed forces and civil armed forces, which will apply across all ranks. This increase will be based on the last pension amount received by the deceased.
The memoranda further detail that the family pension for minors has been fixed at 10 years. These changes aim to ease the financial strain on the government while providing continued support for families of pensioners.
