Sindh Government Moves to Eliminate Pension Payments for Retired Employees
In a significant shift, the Sindh government is amending the Civil Service Act of 1973 to discontinue monthly pension payments for retired employees, as reported by ARY News.
Under the proposed changes, government employees hired after July 2024 will no longer qualify for monthly pension benefits upon retirement. Instead, they will contribute to the Sindh Employee Benefit Scheme, which will provide retirees with a one-time Golden Cheque Gratuity. Contributions will be split, with the government contributing 12% and employees contributing 10%.
This decision follows a cabinet meeting where the Sindh Defined Contributory Pension Scheme 2024 was approved, set to take effect on July 1, 2024. The new amendment to the Sindh Civil Servant Act states that individuals appointed or regularized as civil servants after this date will not be eligible for pensions or gratuity but will participate in the Defined Contribution Pension Scheme.
This shift marks a notable change in retirement benefits for future government employees. What are your thoughts on this new policy?
