The government recently took a big step by proposing changes to pension payments and increasing the retirement age for Islamabad Police and other government employees from 60 to 62 years.
The plan, which was given by the Establishment, is awaiting final approval from the highest authorities, according to a report in the country daily. If it is restricted, pension payments may be reduced by 30 percent. Retirees will receive a maximum pension amount calculated at 70 percent of their eligible salary for the last 36 months of service. However, concerns have emerged about the provisions of the document for early retirement penalties, which are set at 3 percent per year. This restriction is considered to be very strict, especially if we consider the good reasons that some employees may have for requesting early retirement. The document also includes provisions for annual salary increases, a move that some say is inconsistent with all plans. The introduction of such things has caused a debate about their importance and appropriateness in the context of the proposed changes. The decision is pending final approval and ongoing discussions about the potential impact of the reform on government employees and retirees.
