LAHORE: The government of Punjab has issued a notification introducing significant amendments to the pension rules for civil servants, effectively restricting the option of early retirement.
The Punjab Finance Department, exercising its powers under the Punjab Civil Servants Act, 1974, has amended the Punjab Civil Services Pension Rules. The revised rules have come into effect immediately.
The most significant change concerns voluntary retirement. Previously, government employees could opt for retirement after completing 25 years of qualifying service, even if they were under the age of 55. Under the new policy, employees seeking voluntary retirement must now fulfill two conditions: completion of at least 25 years of qualifying service and attainment of 55 years of age.
Importantly, whichever of the two conditions is met later will apply. For example, if an employee completes 25 years of service at the age of 52, they will not be eligible for voluntary retirement until they reach 55.
Clarifications have also been made regarding compulsory retirement. The government may retire an employee compulsorily after the completion of 20 years of qualifying service under certain circumstances. The rules specify that eligibility for pension requires a minimum of 20 years of service.
In cases involving misconduct or corruption, action will also be considered in the context of completing 20 years of qualifying service.
Additionally, amendments have been introduced in Chapter IV of the Pension Rules to align the calculation of pension benefits with the new provisions. Whether retirement occurs voluntarily (after 25 years of service and 55 years of age, whichever is later) or compulsorily (after 20 years of service), pension benefits will be granted under the revised rules.
