Punjab Government Abolishes Annual Pension Increase for Retired Public Servants
The Punjab government has abolished the annual pension increase for retired public servants. A formal notification was issued on Tuesday by the Punjab Finance Department, directing all departments to halt the pension increments.
Read More:Government Considers Reducing Retirement Age by 5 Years
The decision applies to three types of pensions and affects all employees retiring from service from December 3 onwards. The notification, signed by Punjab Finance Secretary Mujahid Sherdil, states that the pensions of individuals seeking voluntary retirement will also be reduced according to their age.
The reductions will be as follows:
- 2% reduction for those retiring at age 59.
- 4% reduction for retirees at age 58.
- 6% reduction for retirees at age 57.
- 8% reduction for retirees at age 56.
- 10% reduction for those retiring at age 55.
The finance secretary has instructed all administrative secretaries and department heads to implement the new order immediately.
Meanwhile, the federal government is reportedly considering a proposal to lower the retirement age from 60 to 55 years in an effort to reduce the growing pension burden.
