The Finance Division has notified that there will be penalties on voluntary retirement.
The notification stated that on the recommendation of Pay and Pension Commission-2020, it has been decided that henceforth, there shall be penalties on voluntary retirement as follows;
A federal government employee may opt for retirement after putting in 25 years of service, however, the employee shall be liable to a flat reduction rate of 3 percent per year in gross pension based on the number of completed months from the date of retirement to the date of superannuation.
Such a flat reduction in gross pension will be capped at 20 percent. Provided that in the case of Armed Forces and Civil Armed Forces voluntary retirement, penalties will apply only if retirement is sought/granted prior to the prescribed Rank Service.
Existing instructions on the subject will stand amended to the extent of above with immediate effect, the notification said.
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