Mohsin Siddiqui (Chief Reporter)

The Establishment Division has voiced apprehensions over certain amendments to the proposed Pension Reforms 2024, highlighting potential drawbacks for government servants post-implementation.

According to an official within the Finance Ministry, the Establishment Division, in its response to the proposed amendments, emphasized that the framing of rules regarding pay, allowances, retirement benefits, and other financial terms primarily falls under the purview of the Finance Division.

However, while acknowledging its role in human resource development for the federal government, the Establishment Division has submitted comments on various proposals outlined in the draft summary and draft notification. As mandated by the Rules of Business 1973, it is responsible for regulating recruitment and determining terms and conditions of civil service posts concerning federal affairs.

A review of the proposed amendments indicates that government servants may face disadvantages following their implementation. Such disadvantages could potentially undermine the Establishment Division’s mandate to foster an efficient and motivated human resource.

One concerning proposal entails granting government employees a gross pension based on 70 percent of the average pensionable emoluments drawn during the 36 months preceding retirement. This could pose challenges for employees promoted in their final year of service, as the calculation based on the last 36 months’ emoluments might yield lower average values, placing them at a disadvantage compared to others.

Additionally, the proposal regarding a three percent per year reduction/penalty on early retirement warrants empirical study. Some government servants may have legitimate reasons for early retirement and should not face penalization.