pay and pension commission Change policy .

 New Pension Policy 2024 

Understanding the New Pension Rule:

By Khizar Muhaddes, CEO, MTCL Associates

The recent changes to the pension law bring significant reforms to the way pensions are calculated and distributed. i would like to shed light on the key aspects of these changes, which will impact retirees in the coming years. Here are three main points to understand:

Pension Based on the Last 24 Months

The revised pension law stipulates that a person's pension will now be based on the average salary or earnings over the last 24 months of service. This change ensures that the pension is more reflective of an individual's final earnings, aligning it with the most recent financial realities.

No Double Pensions

A crucial shift in the law is the elimination of the entitlement to two pensions, even for married couples. Both partners will receive their respective pensions, but only one pension per person will be granted, ensuring fairness and equity within the system.

Increases and Adjustments

Pension increases will be determined based on the baseline. The baseline for pension adjustments will follow the initial pension rate received, with potential increases assessed every three years. The government will decide whether to grant increases, offering flexibility while maintaining consistency for older pensioners who will remain unaffected by these changes.

These updates are a step forward in refining the pension system, ensuring fairness and sustainability for all beneficiaries.