The annual pension increase notification 2014 officially sanctions a 10% increase in net pension for all federal civil pensioners, civilians paid from Defiance Estimates, retired armed forces personnel, and Civil Armed Forces personnel. The President approved this raise effective July 1, 2014 until further order.
Table of Contents
Background and Official Context
The Finance Division (Regulations Wing) issued this Office Memorandum under reference No.F.4(1)-Reg.6/2014 on July 7, 2014. This notification continues the annual pension adjustment practice. Moreover, it explicitly preserves all previous pension increases for new pensioners retiring on or after July 1, 2014, including the 2013 memorandum.
Extract from Notification
| Field | Details |
|---|---|
| Notification Reference | No.F.4(1)-Reg.6/2014 |
| Date Issued | July 7, 2014 |
| Effective Date | July 1, 2014 |
| Issuing Department | Finance Division (Regulations Wing), Government of Pakistan |
| Approval Authority | President of Pakistan |
Annual Pension Increase Notification 2014 Original Notification Text
Government of Pakistan Finance Division (Regulations Wing)
No.F.4(1)-Reg.6/2014
Islamabad, the 7th July, 2014.
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, 2014 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.
- 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, 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 and 10% increase in pension as allowed vide para 1 of the Finance Division’s O.M. No. 4(1)-Reg.6/2013-1375 dated 16.07.2013 shall be admissible to the new pensioners who would retire on or after 1.07.2014.
- The 10% increase in pension as mentioned at para 1 above will also be admissible to the pensioners who would retire on or after 01.07.2014.
- 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
- 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.
- 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.
- 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
- 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.
Key Changes Brought by Notification
The annual pension increase notification 2014 adds a 10% raise for the fiscal year 2014-2015. Additionally, it cumulates all previous increases for new pensioners retiring on or after July 1, 2014. Consequently, new retirees now receive the 2010 (15%), 2011 (15%), 2012 (20%), 2013 (10%), and 2014 (10%) increases cumulatively.
Cumulative Pension Increases Admissible for New Pensioners (Retiring on/after July 1, 2014)
| Year of Original Notification | Increase Percentage |
|---|---|
| 2010 (O.M. July 5, 2010) | 15% |
| 2011 (O.M. July 4, 2011) | 15% |
| 2012 (O.M. July 2, 2012) | 20% |
| 2013 (O.M. July 16, 2013) | 10% |
| 2014 (This notification) | 10% |
Compliance Directives
All Financial Advisers, Deputy Financial Advisors, AGPR offices across Pakistan, Military Accountant General Rawalpindi, and the Central Directorate of National Savings must implement this increase. Furthermore, the Web Administrative officer must upload this memorandum on the Finance Division’s official website.
Summary of the New Notification
The annual pension increase notification 2014 delivers a 10% net pension raise to federal civil pensioners and retired armed forces personnel effective July 1, 2014. Key takeaways include the unchanged definition of net pension (pension minus Medical Allowance as of June 30, 2011). Family pension schemes remain eligible. Pensioners abroad (excluding India and Bangladesh) qualify at applicable exchange rates. New pensioners retiring on or after July 1, 2014 receive all five cumulative increases from 2010 through 2014.