Punjab amends pension rules, tightens early retirement conditions

LAHORE: The Punjab government has amended pension rules for civil servants, restricting early retirement and tightening conditions for voluntary and compulsory retirement, according to a notification issued by the provincial finance department.

The amendments, made under the powers granted by the Punjab Civil Servants Act, 1974, revise the Punjab Civil Services Pension Rules and take immediate effect.

Under the new policy, civil servants seeking voluntary retirement must now meet two conditions: completion of at least 25 years of qualifying service and attainment of 55 years of age.

Previously, in certain cases, employees could opt for retirement after completing 25 years of service even if they were younger than 55.

The revised rules stipulate that whichever of the two conditions — 25 years of service or 55 years of age — is fulfilled, later will apply.

For example, an employee who completes 25 years of service at the age of 52 will have to wait until reaching 55 to qualify for voluntary retirement.

The government has also clarified provisions related to compulsory retirement. It said that after completing 20 years of qualifying service, an employee may be retired compulsorily in certain circumstances.

The 20-year service threshold will also apply in cases involving disciplinary action, including corruption-related matters, for pension eligibility purposes.

Changes have also been introduced in Chapter IV of the pension rules to ensure that pension calculations align with the amended criteria.

The notification states that pension benefits in cases of voluntary retirement at 25 years of service and 55 years of age (whichever comes later), as well as compulsory retirement after 20 years of service, will be granted in accordance with the revised rules.