The Federal Government has introduced significant reforms to the pension system for federal employees, following the Pay and Pension Commission 2020 recommendations.

The Finance Division has formally implemented three key amendments to the existing pension rules.

Under the new regulations, surviving family members of pensioners will now receive benefits for a maximum of 10 years if the spouse of the pensioner passes away or becomes ineligible. However, if the deceased pensioner's child is disabled, they will receive a lifetime pension, while other eligible children will receive the family pension for up to 10 years or until they reach the age of 21, whichever comes first.

The reforms also modify the special family pension scheme, extending pension payments for up to 25 years if the spouse dies or becomes ineligible. Disabled children of pensioners will continue to receive lifetime pensions.

A notable 50% increase in the pension rate for existing pensioners across all ranks of the armed forces and civil armed forces has also been announced.

In addition, new rules concerning voluntary retirement have been introduced. Employees retiring after 25 years of service will face a 3% pension reduction, with a maximum cap of 20% for the remaining service period up to the age of 60.

The Finance Division has issued a formal notification for the immediate implementation of these reforms, which are expected to significantly improve pension benefits for federal employees and their families.