History of Minimum Pension Federal and Provincial Govt Pensioners

Last Updated on April 13, 2020 by Galaxy World

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

 

  1. 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.
  2. 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).
  3. The minimum pension was again increased from 1 July 2014 to Rs.6,000 and family pension also increased to Rs.4,500.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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-88 300.00   50 150.00
1-Jul-08 2,000.00   50 1,000.00
1-Jul-10 3,000.00   75 2,250.00
1-Jul-14 6,000.00   75 4,500.00
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

 

  1. 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.
  2. Comments are welcome at email address [email protected]. Friends wanting to speak on phone may speak on 0300-9800246 between 0900-1600 hours.

Agha Amir

 

Gross / Restored Pension

 

1 Gross / Restored Pension 100
Increase With increase Min Minimum Min Minimum Min Min
Date on % Rs 1988 2008 2010 2013 2014 2018
2 1-Jul-80 100 Rs 40 140            
3 1-Jul-81 140 10 14 154            
4 1-Jul-82 154 10 15 169            
5 1-Jul-83 169 10 17 186            
7 1-Jul-85 186 13.5 25 212            
8 1-Jul-86 186 4.5 8 220            
9 1-Jul-87 186 4 7 227            
10 1-Jul-88 186 7 13 240 300          
12 1-Jul-90 300 5 15   315          
13 1-Jul-91 315 32 101   416          
14 1-Jul-95 416 15 62   478          
15 1-Jul-97 478 10 48   526          
16 1-Jul-99 526 25 131   657          
17 1-Dec-01 657 15 99   756          
18 1-Jul-03 756 15 113   870          
19 1-Jul-04 870 16 139   1,009          
20 1-Jul-05 1,009 10 101   1,110          
21 1-Jul-06 1,110 20 222   1,331          
22 1-Jul-07 1,331 20 266   1,598          
23 1-Jul-08 1,598 20 320   1,917 2,000        
24 1-Jul-09 2,000 20 400     2,400        
25 1-Jul-10 2,400 20 480     2,880 3,000      
26 1-Jul-11 3,000 20 600       3,600      
27 1-Jul-12 3,600 20 720       4,320      
28 1-Jul-13 4,320 10 432       4,752 5,000    
29 1-Jul-14 5,000 10 500         5,500 6,000  
30 1-Jul-15 6,000 7.5 450           6,450  
31 1-Jul-16 6,450 10 645           7,095  
32 1-Jul-17 7,095 10 710           7,805  
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
35 1-Jul-19 15,000 10 1,500             16,500

History of Minimum Pension Federal and Provincial

 

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]

 

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5 thoughts on “History of Minimum Pension Federal and Provincial Govt Pensioners

  1. My age will be 85 years on ist October 2020.Retired from federal govt.in bps.17.How much I will get benefit of pension after 85 years age

    Reply

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