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Historic 10% Pension Increase Notification 2013 Issued for Federal Civil Pensioners

The Finance Division (Regulations Wing) issued this Pension Increase Notification 2013 under reference No.F.4(1)-Reg.6/2013-1375. The President approved the increase until further order. Consequently, this notification supersedes previous ad-hoc relief allowances while maintaining certain prior increases for new pensioners retiring on or after July 1, 2013.

Extract from Notification

FieldDetails
Notification ReferenceNo.F.4(1)-Reg.6/2013-1375
Date IssuedJuly 16, 2013
Effective DateJuly 1, 2013
Issuing DepartmentFinance Division (Regulations Wing), Government of Pakistan
Signing AuthorityMuhammad Shahid Ahmed Ch., Deputy Secretary (R-III)

Government Pension Increase Notification 2013 Original Notification Text

Government of Pakistan Finance Division (Regulations Wing)

No.F.4(1)-Reg.6/2013-1375

Islamabad, the 16th July, 2013.

OFFICE MEMORANDUM

Subject:- GRANT OF INCREASE IN PENSION TO CIVIL PENSIONERS OF THE FEDERAL GOVERNMENT AS WELL AS RETIRED ARMED FORCES PERSONNEL.

The President has been pleased to sanction an increase @ 10% of net pension with effect from 1st July, 2013 until further order to all civil pensioners of the Federal Government including civilians paid from Defence Estimates as well as retired Armed Forces personnel and Civil Armed Forces Personnel.

  1. However, 15% increase in pension allowed vide para 2 of the Finance Division’s O.M. No. F. 4(1)-Reg.6/2010-721 dated 05.07.2010, 15% increase in pension as allowed vide paras-15 of Finance Division’s O.M. NO. F. No. 1(5)-Imp/2011-419 dated 04.07.2011 and 20% increase in pension as allowed vide para 1 of the Finance Division O.M. No. F.4 (1)-Reg.6/2012-1144 dated 02-07-2012 shall be admissible to the new pensioners who would retire on or after 1.07.2013.
  2. The 10% increase in pension as mentioned at para 1 above will also be admissible to the pensioners who would retire on or after 01.07.2013.
  3. For the purpose of admissibility of increase in pension sanctioned in this O.M. the term Net Pension means Pension being drawn minus Medical Allowance, which shall be continued to be admissible at the level of its admissibility as on 30.06.2011
  4. The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.
  5. If the gross pension sanctioned by the Federal Government is shared with any Government in accordance with the rules laid down in part-IV of Appendix III to the Accounts Code, Volume-I, the amount of the increase in pension will be apportioned between the Federal Government and the other Government concerned on proportionate basis.
  6. The increase in pension sanctioned in this O.M. will not be admissible on Special Additional Pension allowed in lieu of pre-retirement orderly allowance
  7. The benefit of increase in pension sanctioned in this O.M. will also be admissible to those Civil Pensioners of the Federal Government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15.08.1947 and are not entitled to, or are not in receipt of pension increase under the British Government’s Pension (increase) Acts. The payment will be made at the applicable rate of exchange.

(Muhammad Shahid Ahmed Ch.) Deputy Secretary (R- III)

Key Changes Brought by Notification

The government pension increase notification 2013 introduces a uniform 10% net pension increase while preserving higher prior increases for new retirees. Additionally, the notification clarifies the definition of net pension and extends benefits to family pension schemes and eligible pensioners abroad.

Admissible Pension Increases Summary

Pensioner CategoryIncrease RateEffective Date
Existing civil and armed forces pensioners10% of net pensionJuly 1, 2013
New pensioners retiring on/after July 1, 201310% + prior 15%/15%/20% increasesDate of retirement
Family pension (multiple schemes)10% admissibleJuly 1, 2013
Pensioners abroad (excl. India/Bangladesh)10% at applicable exchange rateJuly 1, 2013

Compliance Directives

All Financial Advisers, Deputy Financial Advisors attached to Ministries, AGPR offices across Pakistan, Military Accountant General Rawalpindi, and the State Bank of Pakistan must implement this increase. Moreover, the Finance Division directed the Web Administrator to upload this memorandum on the official website www.finance.gov.pk.

Summary of the New Notification

The government pension increase notification 2013 marks a historic 10% net pension raise for federal civil pensioners and retired armed forces personnel effective July 1, 2013. Key takeaways include the exclusion of Medical Allowance from net pension calculation, continued admissibility on family pension schemes, and proportionate sharing of increase for gross pensions split with other governments. Pensioners residing abroad (excluding India and Bangladesh) who retired after August 15, 1947 also qualify. This notification remains in force until further order.

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