Finance Ministry Clarifies Family Pension Rules, Extends Support for Children
The Finance Ministry has issued a clarification regarding the family pension rules, announcing that children eligible for family pensions will now receive financial support until the age of 21.
Updated Family Pension Criteria
The clarification follows an office memorandum dated September 10, 2024, which immediately came into effect on the same date. The eligibility criteria for family pensions, originally formulated on October 23, 2023, will remain intact, with children continuing to receive the pension based on the preferential criteria established by the government.
Key Amendments to Pension Scheme
In addition to the family pension changes, the Finance Ministry had earlier introduced a series of amendments in September 2024 to address escalating pension costs while ensuring that retired employees and their families continue to receive support. The changes, outlined in three separate office memoranda, include:
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- Family Pension Duration: The family pension period following the death of a retired employee has been fixed at 10 years.
- Special Family Pension: The duration for receiving a Special Family Pension has been extended to 25 years.
- Pension for Disabled Children: A significant change was made to provide a lifetime pension to an entitled child of a deceased retired employee if the child is suffering from a disability.
Revised Voluntary Retirement Conditions
The Finance Ministry also revised the conditions for voluntary retirement. A minimum of 25 years of service is now required for employees opting for early retirement. Additionally, those retiring before the official retirement age will face a penalty — a 3% reduction in their pension for each year they retire early.
These measures aim to strike a balance between managing the financial burden on the federal government and ensuring continued support for employees and their families in their post-retirement years.
