Pension Amendment Act 02.07.2024
OFFICE MEMORANDUM
Subject: Pension Amendment Act
Kindly refer to the subject noted above.
A copy of notification bearing No. PAP/Legis-2(02)/2024/64 dated 14.06.2024 published in “the Punjab Gazette” in respect of “the Punjab Civil Servants (Amendment) Act 2024 [Act III of 2024] regarding amendments in Sections 2, 9, 12, 18 and insertion of Section 18-A in the Punjab Civil Servants Act, 1974 is hereby forwarded for information and further necessary action, please.
THE PUNJAB CIVIL SERVANTS (AMENDMENT) ACT 2024
                                                                                 ACT III OF 2024
[First published, after having received the assent of the Governor of the Punjab, in the Gazette of the Punjab (Extraordinary) dated June 14, 2024.]
An Act further to amend the Punjab Civil Servants Act, 1974.
It is necessary further to amend the Punjab Civil Servants Act, 1974 (VIll of 1974) for the purposes hereinafter appearing. Be it enacted by Provincial Assembly of the Punjab as follows:
- Short title and commencement:
- This Act may be cited as the Punjab Civil Servants (Amendment) Act 2024.This Act shall come into force at once.
- Amendment of section 2 of Act VIII of 1974.- In the Punjab Civil Servants Act, 1974 (Vill of 1974), for brevity referred to as the Act, in section 2, in subsection (1), after clause (b), the following shall be inserted:
- “(b-a) “Defined Contribution Pension Scheme” means the pension scheme stipulated under section 18-A.”.
- Amendment of section 9 of Act VIll of 1974.- In the Act, in section 9, after the words “province in any” and before the words “post under”, the words “equivalent or one scale higher shall be inserted.
- Amendment of section 12 of Act VIll of 1974-In the Act, in section 12, in subsection (1), for clause (), the following shall be substituted:
“on such date after he has completed twenty years of service qualifying for pension or other retirement benefits; or, twenty years of service participating in Defined Contribution Pension Scheme or other retirement benefits, as the case may be, as the competent authority may, in public interest, direct, or”.
Amendment of section 18 of Act VIll of 1974.- In the Act, in section 18, for subsection (1), the following shall be substituted:
“(1) On retirement from service, a civil servant appointed before the commencement of Punjab Civil Servants (Amendment) Ordinance 2023 (1 of 2024), shall be entitled to receive such pension or gratuity as may be prescribed.”.
4756 THE PUNJAB GAZETTE (EXTRAORDINARY) JUNE 14, 2024
6. Insertion of new section 18-A in Act VIll of 1974.- In the Act, after section 18, the following new section 18-A shall be inserted:18-A. Defined Contribution Pension Scheme.-
- Â A person appointed or regularized as civil servant on or after the commencement of Punjab Civil Servants (Amendment) Ordinance 2023 (1 of 2024) shall participate in a Defined Contribution Pension Scheme as may be prescribed.
- Â In the Defined Contribution Pension Scheme, the Government, as employer, and such civil servant, as employee, shall contribute to pension account, and such contributions shall be invested in a pension fund until retirement of the employee and the accumulated balance in the pension account, at the time of retirement, is withdrawn or invested further to generate monthly income during post retirement phase, subject to such exceptions as may be prescribed.”.
7. Repeal and saving-
(1) The Punjab Civil Servants (Amendment) Ordinance 2023 (XIX of 2023) and the Punjab Civil Servants (Amendment) Ordinance 2023 (1 of 2024) are hereby repealed.
(2) Notwithstanding the repeal under subsection (1), all actions taken under the repealed Ordinances, shall be deemed to have been taken under the Act.
The Pension Amendment Act of July 2, 2024, introduced changes to improve and modernize the pension system. Here’s a simple breakdown of the key points:
- Updated Retirement Age: The retirement age for receiving a full pension was adjusted to reflect changes in life expectancy. This means people may have to work a little longer before they can start receiving their pension benefits.
- Increased Pension Contributions: Both employees and employers may now have to contribute a slightly higher percentage of their earnings to the pension fund. This increase ensures that the pension system remains financially stable and can continue supporting retirees in the future.
- Flexible Pension Options: The amendment provides more flexibility in how people can access their pension funds. This could include options for early retirement with reduced benefits or phased retirement, allowing people to work part-time while receiving part of their pension.
- Enhanced Pension Protection: To safeguard retirees, the Act strengthens protections against mismanagement of pension funds, ensuring that people’s savings are more secure.
In short, the Pension Amendment Act 2024 focuses on making the pension system more sustainable, giving people more options for retirement, and providing stronger financial security for future retirees.
