The Punjab government has decided to stop the annual pension increase for retired public servants.
The Punjab Finance Secretary issued a letter directing all departments to take action and halt the pension increases. This decision, affecting three types of pensions, was formally announced through a notification on Tuesday.
The notification, signed by Punjab Finance Secretary Mujahid Sherdil, was sent to all administrative secretaries and department heads, instructing them to enforce the new rule immediately. The ban on pension increases applies to all employees retiring from service starting December 3.
The notification also states that those who retire voluntarily will see a reduction in their pensions. For example, a 59-year-old retiree will face a 2% reduction in their pension, a 58-year-old will see a 4% cut, a 57-year-old will lose 6%, a 56-year-old will have an 8% reduction, and a 55-year-old will face a 10% cut.
The Finance Secretary emphasized that all departments should act quickly to implement the new policy.
In related news, the federal government is reportedly considering a proposal to lower the retirement age for government employees by five years to reduce the growing pension burden. The proposal suggests lowering the retirement age from 60 to 55.
