Notification of Payment of Commuted Value of Pension KPK

Government of Khyber Pakhtunkhwa, the Finance Department has issued Notification on 05-05-2020 in connection with Payment of Commuted Value of Pension for KPK Pensioners. The details of the same commuted portion of pension KPK is as under:


Payment of Commuted Value of Pension KPK


I am directed to refer to the subject cited above and to state that the Provincial Government has field CPLA before the Supreme Court of Pakistan against the judgment of the Peshawar High Court, Peshawar contained in WP No.5673-P/2019, dated 19.02.2020. At the same time, all Departments have been advised vide Establishment & Administration Department’s circular letter No.SO(Policy)/1-13/2019 date 16-03-2019 date 16-03-2020, to process the cases of the retirement of those employees who have attained the age of superannuation on 31.07.2019 & onwards conditionally.  Accordingly, the retirement orders of the relevant employees are being issued by the Department subject to final outcome of the CPLA already filed in the Supreme Court of Pakistan. The Pension cases of such employees are reportedly held in abeyance for what of clarification as to what course of action to be taken as a result of the anticipated verdict of the Supreme Court of Pakistan.


Examination of Case


  1. The case has been examined in depth and decided that awarding pensionary benefits to the relevant employees is although obligated under the relevant rules, yet, this fact is also warranted clarification that in case the Supreme Court if Pakistan decided the case in favour of the Provincial Government then those employees who opted to receive commuted value of pension shall absolve themselves from back benefits to be accrued from the date of their retirement in the shape of salary, etc.




3- In view of the above, it is requested that while processing such cases, an undertaking in judicial stamp may kindly be obtained from the pensioners that he/she shall not claim any back benefit on account of salary, etc, if accrued, during the course of retirement to the date of the decision of the apex court, referred to above.

Special thanks to Mr. Muhammad Jawad for sending a copy of the Notification of Payment of Commuted Value of Pension.


Payment of Commuted Value of Pension KPK



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