The Sindh government has decided to amend the Civil Service Act of 1973 to eliminate the provision of monthly pensions for retired employees, ARY News reported on Friday.
As per the proposed amendment, government employees hired after July 2024 will no longer be eligible for monthly pension benefits upon retirement.
Instead, the amendment outlines that both employees and the provincial government will contribute to the Sindh Employee Benefit Scheme, through which retirees will receive a one-time Golden Cheque Gratuity. The scheme will require contributions of 12% from the government and 10% from employees.
This move aims to ease the financial burden of pensions on the provincial budget, which currently allocates a significant portion to pension payments, according to the Sindh government.
Previously, during a cabinet meeting at the CM House, the Sindh government approved the implementation of the Sindh Defined Contributory Pension Scheme 2024, effective from July 1, 2024.
The cabinet also approved the inclusion of a new subsection in the Sindh Civil Servant Act 1973. The proposed amendment states that any individual appointed or regularized as a civil servant on or after the commencement of the Sindh Civil Servant (Amendment) Act, 2024, will be considered a civil servant, but without eligibility for pension and gratuity. Instead, they will participate in the Defined Contribution Pension Scheme, where they will receive the amount contributed by both themselves and the government into the fund under the prescribed guidelines.
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