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The federal government has chosen to offer government employees the opportunity to take early retirement after completing 25 years of service.
According to reports, the Finance Division, acting on the advice of the Pay and Pension Commission, has determined that government employees can opt for early retirement after 25 years of service. However, those employees will be subject to a penalty of a 3 percent reduction in their gross pension for each year from the year of retirement until reaching the age of superannuation.
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Likewise, the government is likely to endorse recommendations related to pension calculations at the time of retirement.
Under the proposed suggestions, any increase in pension will be based on the pension calculated at the time of retirement. Each increase will be kept as a distinct amount until the government decides to review and approve any additional pensionary benefits.
The Commission has also proposed that federal government employees should receive a gross pension equivalent to 70 percent of the average pensionable earnings during the last thirty-six months of service before retirement.
In the event of a spouse’s death or disqualification, a family pension will be granted to entitled family members for a maximum period of 10 years. In the case of a Shuhada pension, the maximum period for entitled family members will be 20 years after the death or disqualification of a spouse.
Furthermore, in the case of disabled or special children of a pensioner, the family pension will continue for the lifetime of such children.
Additionally, federal government employees will have the option to convert a maximum of 25 percent of their gross pension at the time of retirement, following the terms and conditions specified by the federal government.
If a federal government pensioner is re-employed or appointed in public service after retirement, regardless of the type of employment (regular or contract), the pensioner will have the choice to either keep their pension or receive the salary for the new employment during the period of that employment.
In situations where an individual becomes entitled to multiple pensions, they will only be allowed to choose one of the pensions.
It’s important to note that the Finance Division informed the Pay and Pension Commission in 2020, and the commission has submitted its recommendations to the cabinet for approval.
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