Supreme Court declares pension constitutional right, not employer charity

A two-member bench of the Supreme Court of Pakistan, comprising Justice Muhammad Ali Mazhar and Justice Musarrat Hilali, has ruled that pension is a vested constitutional right meant to provide old-age security and economic support after retirement, holding that it cannot be treated as charity, donation, or discretionary favour by an employer.

According to a news report, the apex court dismissed the Federation of Pakistan’s appeal against the January 19, 2025 judgment of the Federal Service Tribunal. The bench issued the ruling while deciding a pension dispute involving Seema Tauseef. 

The eight-page judgment, authored by Justice Muhammad Ali Mazhar, said the court found no illegality, irregularity, or perversity in the tribunal’s decision.

Seema Tauseef had served in the Development Fund project continuously since 1986 and was later appointed on a contract basis against the permanent post of Woman Program Officer (WPO) on July 1, 1997.

Her services were regularised on December 15, 2011, after about 24 years of continuous service. She retired on December 25, 2020 after reaching the age of superannuation.

The dispute arose after her service from 1986 to December 14, 2011, was excluded from her final pension benefits.

She then filed Service Appeal No. 515(R) CS/2023, which was allowed by the Federal Service Tribunal.

The Supreme Court held that timely pension payment after retirement is generally the main source of livelihood for a retired employee.

The court also observed that contractual employment must have a reasonable limit and should be used only for temporary, time-bound or urgent assignments.

It said contract arrangements should not be continued indefinitely against permanent posts.