ISLAMABAD: The Establishment Division is said to have expressed its concern over some amendments to proposed pension reforms in 2024 and stated that the government servants will be at a disadvantage after the implementation.
An official in the Finance Ministry said that the Establishment Division in its response to the proposed amendments to Pension Reforms 2024, maintained that the matter of framing of rules on pay and allowances, retirement benefits and other financial terms and conditions of service of government servants primarily falls under the domain of the Finance Division.
However, the Establishment Division being the human resource development of the federal government has submitted its comments about various proposals of the draft summary and draft notification. It has the responsibility under the Rules of Business 1973, for the regulation of recruitment and determination of terms and conditions of services to civil posts in connection to the affairs of the federation.
A perusal of the proposed amendments suggests that the government servants will be at a disadvantage after their implementation.
The element of disadvantage to the government servants will adversely impact the role, the responsibility of this Division (Establishment Division) to provide an efficient and motivated human resource.
The proposal that government employees shall be entitled to gross pension based on 70 percent of the average pensionable emolument drawn during the 36 months of service before retirement will be a matter of concern for the employees who have been promoted in the last year of service. Additionally, the calculation of pension on the average pensionable emoluments from the last 36 months will place them at a disadvantage vis-à-vis others due to the lower average value.
The proposal relating to early retirement reduction/penalty of three percent per year on early retirement needs to be based upon empirical study. There are instances where the government servants have genuine reasons to opt for early retirement and they should not be penalised.
Copyright Business Recorder, 2024
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