Govt allows retirees to choose between pension or salary during re-employment

The federal government, revising its pension policy, has allowed retired employees who return to work in government service after the age of 60 to choose between continuing their pension or receiving a salary during their new term of service, according to a news report.

The revision comes in line with the recommendations of the Pay and Pension Commission 2020. An official memorandum from the Finance Division’s Regulations Wing clarified that the new rule applies to all forms of post-retirement employment, including regular, contract, or any other arrangement in the public sector.

Under the previous policy, pensioners rejoining government service often faced deductions or issues related to their pension benefits. 

The amended rule now provides retirees with a clear option to select the most advantageous income stream, whether that be their pension or their salary.

This policy change takes effect immediately, replacing previous guidelines on the matter. The government’s move is expected to encourage experienced professionals to return to public sector jobs without financial penalties. 

Additionally, it may help reduce unnecessary costs for the government if pensioners choose to forgo their pension and accept a salary instead.