Interior ministry recommends no change in family pension

ISLAMABAD: The Ministry of Interior has recommended no changes in the family pension system under the much-hyped Pension Reforms.

According to an official communication from the Ministry of Interior to the Ministry of Finance, no proposal should discriminate against the civil armed forces personnel as compared to 60 years of retirement age in civil. Family pension should not be disturbed (as per Prime Minister’s Assistant Pacakge-215 & Payment of Compensation Rules, 2020). Owing to the prevailing sensitive environment, special protection to in-service death/Shuhada family’s needs to be given without affecting the operational efficiency of the civil armed forces and morale of serving/retired all ranks.

Under the existing rules, multiple pensions are authorized to individuals in case of death of spouse/children and father if applicable. Now it is proposed that only one pension is entitled. Option available to the select high one and surrender all other.

The ministry granted its support generally and argued that the families of Shuhada and in-service death cases shall not be affected. Individual if re-employed, in the public sector can get pay and pension both from the federal government under the existing arrangement. Now it is proposed that if re-employed, both benefits will not be authorized from the federal govt. i.e. either pay or pension will be authorized during re-employment. The individual has to forgo either pay or pension.

The ministry recommended no discrimination against the civil armed forces personnel as compared to other federal government employees (retiring age of 60 years). Both pay and pension be made admissible till age of 60 years in case of re-employment in public section.

Average retiring ages in civil armed forces are as under: Civil Gazette Officer (BPS-17) — 42/48, Junior Commissioned Officer (BPS-13 to 16) 41/47-53, non-Commissioned Officer (BPS-7 to 9) 38/44, Soldier (BPS-05) 35/41.

Under the existing arrangement, pension was entitled to 3rd tier i.e. unmarried/widow/divorced daughter for life. Now it is proposed that pension is restricted to 3rd tier for only 10 years. Few exemptions also include Shuhada families, 20 years, disabled son/daughter for lifetime.

The ministry stated that the point partially supported with the condition that increase the limit in case of 3rd tier from 10 to 25 years and for shuhada’s children from 20 to 30 years and unmarried/divorced/widow (being not married) daughter be entitled for life till marriage.

Each year increase in pension is authorized on gross/net pension i.e. compounding effect which means % increase is given on last drawn pension. Now it is proposed that the increase will be given on gross/net pension i.e. authorized at the time of retirement (net/gross) as the case may be. In future, increase in pension has been indexed with CPI (80% of last 3 years) with maximum 10% increase per annum. Base line of pension be reviewed after every 3 years. Pension be increased @ 100% of CPI with no upper limit. Increase in pension be made on sliding sales as practiced prior to 2010 to compensate old pensioners.

Individual can request for premature retirement with full benefits on case to case basis. Early retirement is discouraged and minimum 3% and maximum 10% penalty will be admissible to retiring individual. The ministry stated that the proposal may not affect civil armed forces as the procedure is already built in.

Pension granted on last pay drawn of retiring individual. Now it is proposed that pension will be calculated on the average of last 3 years pay (36x months). The ministry recommended that pensionable emoluments of civil armed forces were already limited; therefore, the existing last drawn average emoluments may continue.

The commutation/pension granted to retiring individual with the ration of 35% & 65%. It is proposed that the formula of commutation/pension be changed to 25% & 75% respectively. In the past, commutation/pension formula was 50% and 50% which was reduced to 35% and 65%.

Restoration of pension after completion of number of years purchased. Restoration of pension has been discontinued in future. Individuals served prime time of his life for the country and benefits/interest at the later stages of their life must be entertained. Therefore, restoration could not be discontinued. Pension was given as per Defined Benefit Model (Govt. to hear all expenses). Establishment of pension fund by the govt. Pension will be given as per Defined Contributory Model (DC).

The Ministry of Interior recommended that the proposal was agreed to subject to the following: As the salaries of civil armed forces personnel are already limited and they are hardly managing their household expenses in the current price-hike. The contributory model of pension will further affect the existing employees. However, detailed terms and conditions be defined for fresh inductees after deliberations with Civil Armed Forces HQs through Ministry of Interior. The proposal shall not be finalized without requisite input of civil armed forces HQs/Ministry of Interior.