Pensioners to Choose Between Pension and Salary After Re-Employment

In a significant policy shift, the federal government has announced that pensioners who are re-employed or reappointed in public service after the age of 60 will now have the option to either continue receiving their pension or draw the salary of their new employment. According to an official memorandum issued by the Finance Division (Regulations Wing), this decision comes following the recommendations of the Pay and Pension Commission 2020. The new directive applies regardless of whether the re-employment is on a regular or contract basis. “This move provides flexibility and financial choice for pensioners contributing their expertise post-retirement,” the memo stated. It emphasizes that the existing instructions on this matter stand amended with immediate effect.