Government of the Punjab Law and Parliamentary Affairs Department issued a Notification on 08-01-2024 in connection with Pension Reforms in Punjab 2024 (Pension Contributory Scheme) thus introducing The Punjab Civil Servants (Amendment) Ordinance 2023. The details are as under:
The Punjab Civil Servants (Amendment) Ordinance 2023 – Pension Reforms in Punjab 2024 (Pension Contributory Scheme)
The government of Punjab Law and Parliamentary Affairs Department issues a notification on 8th January 2024. In the notification following ordinance promulgated by the Governor of Punjab is hereby published for general information.
An ordinance to amend the Punjab Civil Servants, act 1974 is necessary to amend the Punjab Civil Servants Act 1974(VIII of 1974) to hereafter appear.
Provincial Assembly of Punjab is not in session and the Governor of Punjab is satisfied that circumstances exist which render it necessary to take immediate action.
In the exercise of the powers conferred under clause (1) of Article 128 of the constitution of the Islamic Republic of Pakistan governor of Punjab is pleased to promulgate the following ordinance:
Short Title and Commencement –
This ordinance may be cited as the Punjab Civil Servants (Amendments) Ordinance 2023
The ordinance shall come into force at once.
Amendment of Section 2 of Act VIII of 1974
In the Punjab Civil Servants Act 1974 for gratuity referred to as the Act in section 2 subsection (1) after clause b the following shall be inserted
“(b-a)” Defined contribution pension scheme means the pension schemes stipulated under subsection 2 of section 18.
Amendment of Section 12 of Act VIII of 1974
In the act in section 12 in subsection one for clause one the following shall be substituted:
On such date after has completed 20 years of service qualifying for pension or 20 years of service participating in defined contribution pension scheme as the case may be or other retirement benefits as the competent authority may in public interest direct; or”
Substitution of section 18 of Act VIII of 1974
in the act for section 18, the following shall be substituted.
”18, Pension and Gratuity
On retirement from service, a civil servant appointed before the commencement of Punjab Civil Servants’ Ordinance 2023 shall be entitled to receive such pension or gratuity as may be prescribed:
Provided that in the event of the death of such civil servant whether before or after retirement his family shall be entitled to receive such pension or gratuity or both as may be prescribed:
The Provided further that no pension shall be admissible to such civil servant in case he is dismissed or removed from service for the reason of discipline but the government may sanction Compassionate Allowance to such servant not exceeding 2/3 of the pension or gratuity which would have been admissible to him if he had been by bodily or mental infirmity Incapacitated for further service on the date of such dismissal or removal:
A person appointed or regularized regardless of the effective date of regularization in the case of civil servants on or after the commencement of the Punjab Civil Servant Ordinance 2023 shall participate in a defined contribution pension scheme as may be prescribed:
Provided that in the defined contribution pension scheme, the government as employer and a civil servant as the employee shall contribute to the pension account, and such contribution shall be invested in a pension fund until the retirement of the employee and the accumulated balance in the pension account at the time of retirement is withdrawn or invested further to generate monthly income during post-retirement phase subject to exception or may be prescribed”.
