LAHORE – Punjab government made significant amendments to the pension rules, which will impact the pensions of individuals opting for early retirement.
These tweaks are part of the government’s financial reform initiative, and will cut funds from pensions of those who retire before reaching the standard retirement age. Specifically, a 59-year-old taking early retirement will see a 2% reduction in their pension, while a 58-year-old will face a 4% decrease.
These deductions will increase with the age of the individual, with 57-year-olds facing a 6% cut, 56-year-olds an 8% reduction, and 55-year-olds experiencing a 10% decrease in their pensions.
In addition to these reductions, the amendments will also revoke any additional benefits previously awarded in 2011, 2015, and 2022, further tightening the pension structure for early retirees.
This move by the Punjab government is aimed at reinforcing fiscal responsibility and sustainability amidst growing economic challenges. However, it has raised concerns among public sector employees regarding their financial security upon retirement.
The coalition government emphasizes that these reforms are necessary to ensure the long-term viability of the pension system in Punjab.
