Punjab finance department announces pension reductions for early retirees

The Punjab Finance Department has introduced amendments to the pension regulations, imposing reductions for individuals opting for early retirement. The new measures, outlined in a recent notification, are designed to regulate pension benefits for retirees who choose to leave their positions before the standard retirement age.

According to the new rules, pension reductions will be applied based on the retiree’s age at the time of voluntary retirement. For example, retirees who are 59 years old will experience a 2% reduction in their pensions. Those retiring at 58 will face a 4% cut, while 57-year-olds will see a 6% reduction.

The reductions continue to increase for younger retirees. Individuals retiring at 56 will face an 8% cut, and those retiring at 55 will see a 10% reduction in their pensions.

These amendments are part of the government’s efforts to regulate early retirement benefits while ensuring fiscal sustainability. The notification highlights the government’s commitment to aligning pension policies with long-term economic goals, aiming to strike a balance between supporting retirees and maintaining financial stability.