March 4, 2002	Monday	Zilhaj 19, 1422

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ISLAMABAD, March 3: The government has decided to withdraw the benefit of restoration of commuted portion of pension irrespective of an employee’s date of retirement for all military and civil servants.

According to a finance ministry notification obtained by Dawn, “the increase in pension at the rate of 20 to 25 per cent to civil pensioners and armed forces personnel allowed vide Ministry of Finance O.M No. 4(1)Regs/6/99, dated July 23, 1999, and u.o No.4(1)Regs.6/99 dated Sept 1, 1999, respectively has been discontinued.”

The notification said the benefit of restoration of surrendered portion of pension in lieu of pension/gratuity has been withdrawn.

Moreover, the additional benefit of 2 to 10 per cent for extra years of service after completion of 30 years of qualifying service and prescribed service limit in respect of Armed Forces Personnel has also been discontinued.

The notification said in future, the increase in pension to the pensioners will be allowed on net pension instead of gross pension.

Increase in the net pension, inclusive of dearness increases, would be 15 per cent for pensioners who retired prior to the introduction of 1991 pay scales; 10 per cent increase in net pension for those who retired prior to the introduction of 1994 pay scales but on or after the introduction of the 1991 pay scales; and 5 per cent increase in net pension for pensioners who retired on or after the introduction of 1994 pay scales and up to the date of introduction of revised pay scales.

The personnel of the armed forces who will retire with effect from July 1, 2001, will be given the benefit of revised pay scale on presumptive basis discounted by five per cent increase in pension if availed subject to the condition that all those who may like to avail this benefit will opt for the entire package as contained in JSI 3/2001, Army Instruction 3/2001, Air Instruction 30/2001 and Navy Instruction 5/2001.

Sources said the implementation of the new rules would deprive all pensioners the benefit of commutation who had pledged 50 per cent of their pension in the past as a trust to the government to be restored on their attaining the age of superannuation. “The government has violated the contract which it entered with the personnel who retired prior to 2001 and had commuted 50 per cent of their pension in the hope that such 50 per cent pension would be restored on attaining the age limit,” an affected by the decision said.