Punjab Finance Department Announces New Pension Rules for Retirees, bringing significant changes for government employees in Punjab. The revised pension rules aim to improve transparency and discipline in the system. Employees now must meet both a minimum age requirement and qualifying service conditions for retirement benefits. These changes affect voluntary retirement, forced retirement, and pension calculations for misconduct cases.
Under the new rules, voluntary retirement requires 25 years of service or 55 years of age, whichever comes later. This ensures fairness and clarity for all employees considering early retirement. Forced retirement cases now grant pension benefits only after completing 20 years of qualifying service. The amendments also strengthen provisions against corruption or misconduct. Completion of qualifying service has been made a mandatory condition for pension eligibility.
The Punjab Finance Department issued an office memorandum on Feb 24, 2026, withdrawing earlier notifications from April 22, 2025, and June 19, 2025. These changes also impact retired employees who are rehired. Previously, retirees above 60 had to choose between a salary and a pension during re-employment. Now, salary and pension can be drawn simultaneously, reducing confusion and supporting re-employment policies.
Experts say these pension reforms of 2026 help reduce government liabilities while maintaining retirement benefits for employees. Transparency and policy consistency are emphasized to prevent misuse. The Ministry of Finance has circulated the new notification to all federal ministries and divisions. This ensures smooth implementation across all departments.
In conclusion, the Punjab Finance Department announces new pension rules for retirees to provide clear guidelines, strengthen compliance, and improve retirement benefits for government employees. All eligible staff should review the new conditions and update their retirement plans accordingly.
