I am here sharing the detailed article coving the complete history of Minimum Pension Federal and Provincial Govt Pensioners. Special thanks to Mr. Agha Amir for delivering this article for the information of pensioners. Let’s go through the contents of this article.
History of Minimum Pension Federal and Provincial
- No minimum pension stood notified before 1988. A minimum pension of Rs.300 was notified by Finance Division from 1 July 1988. Since family pension in those days was 50% of principal pension (that of the deceased pensioner), the minimum amount of family pension was notified as Rs.150. This minimum was raised from 1 July 2008 to Rs.2,000 for the pensioner, and accordingly Rs.1,000 (being 50% of that) for a family pensioner.
- From 1 July 2010, family pensioners received two benefits. The first benefit was related to the pension of the deceased pensioner which was increased to Rs.3,000. The second benefit was raising the percentage of family pension from 50 to 75. Thus, while the principal pensioner got a minimum of Rs.3,000, the family pensioner got a minimum of Rs.2,250 (being 75% of Rs.3,000).
- The minimum pension was again increased from 1 July 2014 to Rs.6,000 and family pension also increased to Rs.4,500.
- It was last increased to Rs.10,000 from 1 July 2018, and the family pension rose to Rs.12,500. This level applied to those pensioners who were less than 75 years old.
- For pensioners 75 and more years old, the minimum principal pension was increased to Rs.15,000 and the family pension to Rs.12,500.
- The general increase in pension given from 1 July 2016 was 10%, and a special increase was given at a higher rate of 25% to 85 or more years old pensioners. Upon inquiry, it was later clarified by Finance Division that this special increase (an additional increase of 15% over the general increase of 10%) would be admissible to those pensioners also from the date they would be attaining the age of 85 years after 1 July 2016.
- It is anticipated that the pension increase from 1 July 2019 would be more than 10%. Supposing that a 20% general increase is given from 1 July 2019. It would imply that the increase would be 35% for those pensioners who turn 85 years old between 01 July 2019 and 30 June 2020.
- Table A below gives a summary of the minimum pension for the principal pensioners, and separately for family pensioners.
Table A – Minimum Pension, Pensioner, and Family
|Principal||Remarks, if any||Family|
|Pensioner||about age of pensioner||%||Rs|
|1-Jul-18||10,000.00||Less than 75 years of age||75||7,500.00|
|15,000.00||75 & above years old||75||12,500.00|
- For refreshing knowledge about pension increases from 1 July 1980 onward, please see table B below. In this case it is presumed that the pensioner retired in Basic Pay Scale 5 with a Gross Pension of Rs.100, and it was restored upon expiry of years for which a part of it was commuted. Therefore the non-increase on commuted part from 2001 has been ignored. The first increase from 01 Jul 1980 is a minimum fixed amount, while other increases are percentage of the pension being drawn. The pensioner was turned 85 years old on 1 Feb 2019.
- Comments are welcome at email address [email protected]. Friends wanting to speak on phone may speak on 0300-9800246 between 0900-1600 hours.
Gross / Restored Pension
|1||Gross / Restored Pension||100|
|33||1-Jul-18||7,805||10||780||Minimum for 75 years old pensioners||8,585||15,000|
|34||1-Feb-19||7,805||15||1,171||Additional 15% on reaching 85 years||9,756||15,000|
|Free advice on pension matters|
|AGHA AMIR AHMAD FCMA|
|Rtd. Dy Dir, Auditor General Department|
|Member, Executive Committee AWRP|
|[Assn for Welfare of Retired Persons]|
|0300 9800246 [email protected]|