History of Minimum Pension Federal and Provincial Govt Pensioners

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

 

PrincipalRemarks, if anyFamily
Pensionerabout age of pensioner%Rs
1-Jul-88300.00 50150.00
1-Jul-082,000.00 501,000.00
1-Jul-103,000.00 752,250.00
1-Jul-146,000.00 754,500.00
1-Jul-1810,000.00Less than 75 years of age757,500.00
15,000.0075 & above years old7512,500.00

 

  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

 

1Gross / Restored Pension100
IncreaseWith increaseMinMinimumMinMinimumMinMin
Dateon%Rs198820082010201320142018
21-Jul-80100Rs40140      
31-Jul-811401014154      
41-Jul-821541015169      
51-Jul-831691017186      
71-Jul-8518613.525212      
81-Jul-861864.58220      
91-Jul-8718647227      
101-Jul-88186713240300     
121-Jul-90300515 315     
131-Jul-9131532101 416     
141-Jul-954161562 478     
151-Jul-974781048 526     
161-Jul-9952625131 657     
171-Dec-016571599 756     
181-Jul-0375615113 870     
191-Jul-0487016139 1,009     
201-Jul-051,00910101 1,110     
211-Jul-061,11020222 1,331     
221-Jul-071,33120266 1,598     
231-Jul-081,59820320 1,9172,000    
241-Jul-092,00020400  2,400    
251-Jul-102,40020480  2,8803,000   
261-Jul-113,00020600   3,600   
271-Jul-123,60020720   4,320   
281-Jul-134,32010432   4,7525,000  
291-Jul-145,00010500    5,5006,000 
301-Jul-156,0007.5450     6,450 
311-Jul-166,45010645     7,095 
321-Jul-177,09510710     7,805 
331-Jul-187,80510780Minimum for 75 years old pensioners8,58515,000
341-Feb-197,805151,171Additional 15% on reaching 85 years9,75615,000
351-Jul-1915,000101,500      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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