reduced benefits
ISLAMABAD
The government on Wednesday drastically reduced pension benefits of retired civil and armed forces personnel aimed at containing a growing pension bill, which has already swelled over Rs1 trillion the fourth largest expense in the budget. The Ministry of Finance on Wednesday issued three separate notifications to discontinue multiple pensions, reducing both the first home take pension and also lowering the base for determining future increase in pensions. The changes will not be applicable to people who have already retired, except in cases where multiple pensions are paid.
It also ended annual compounding of the pension and any increase would be treated separately from the base pensionin a concept that is similar to the ad-hoc salary increase that is not made part of the basic salary to avoid compounding.
