Finance Division Issues Regulations for Special Family Pension

pension expenses

Islamabad, September 11, 2024 – The Finance Division has introduced new regulations concerning the special family pension scheme, as part of reforms aimed at improving support for the families of deceased pensioners.

In a recent office memorandum, the Finance Division announced these changes following recommendations from the Pay and Pension Commission – 2020.

The new regulations, effective immediately, are designed to extend benefits and provide more clarity regarding the entitlement of family members to the pension scheme. The key changes outlined in the memorandum include enhanced eligibility criteria and extended time frames for receiving the pension.

Key Regulations of the Special Family Pension Scheme

1. Extended Eligibility for Family Members: Under the new rules, the special family pension will be available to eligible family members for up to 25 years following the death or ineligibility of the spouse or the first recipient. This move ensures that dependents continue to receive financial support for a significant period after the primary pensioner is no longer eligible.

2. The Finance Division has also made provisions for the children of pensioners with disabilities. According to the revised regulations, the special family pension will be provided for the lifetime of such children, ensuring continuous financial support without any time limits.

3. Increased Pension Rate: Another key feature of the new regulations is the increase in the pension rate for eligible recipients. The pension amount has been enhanced to 50% of the last drawn pension that was payable to the first recipient, and this applies uniformly across all ranks of the Armed Forces and Civil Armed Forces. Importantly, there will be no minimum or maximum limits, and the pension will be transferable to all eligible heirs as outlined in Rule 12 of the Pension Regulations Vol – I (Armed Forces), 2010.

These amendments represent a significant shift from the previous rules, which had more restrictive terms on pension entitlements. The Finance Division has stated that all prior instructions on the special family pension will be amended in line with these new regulations.

Immediate Implementation

The Finance Division emphasized that these changes are effective immediately. Existing beneficiaries of the special family pension scheme and future recipients are encouraged to review the updated regulations to ensure they understand the new terms.

Support for Families of Armed Forces and Civil Armed Forces

The newly introduced reforms reflect the government’s ongoing commitment to supporting the families of armed forces personnel and civil armed forces employees. By extending the eligibility period and increasing the pension rate, the Finance Division aims to provide greater financial security to the dependents of pensioners.

These changes are expected to have a significant impact on the welfare of families, offering long-term financial stability and reducing uncertainty about the future. Families are advised to reach out to the relevant authorities for further clarification regarding the new pension regulations.