Punjab stops annual pension increase for retired employees.
The Punjab government has stopped the annual pension increase for retired public servants.
The Punjab finance secretary has through a letter ordered all departments to take steps to stop the increase in pension.
Also read: Pension is a huge burden on government
The finance department’s decision, which applies to three types of pensions, was formally communicated through a notification issued on Tuesday.
The directive, signed by Punjab Finance Secretary Mujahid Sherdil, has been sent to all administrative secretaries and department heads, instructing them to implement the new order immediately.
According to the notification, the ban on pension increases will apply to all employees retiring from service starting today – December 3.
According to the notification, the pensions of those who seek voluntary retirement would also be deducted.
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A 59-year-old person who retires soon will have a 2% reduction in his pension, while a 58-year-old person’s pension will be reduced by 4%, a 57-year-old person’s pension will be reduced by 6%, a 56-year-old person’s pension will be reduced by 8% and a 55-year-old person’s pension will be reduced by 10%, the notification added.
“All departments should take steps to halt the increase in pension under the new notification,” the secretary has said in the letter.
Read further: Government hints at raising retirement age
Earlier a day ago, the federal government reportedly considered a proposal to lower the retirement age for government employees by five years in a bid to reduce the mounting pension burden.
