The requirement to choose a single pension option will apply to government employees who are re-employed starting from January 1, 2025, the Finance Division has said.

The Finance Division issued a clarification on Thursday regarding the question of whether the requirement to choose a single pension applies to those who have already been receiving more than one pension before the issuance of the mentioned order, Business Recorder reported.

The decision does not apply to federal pensions for those who were already receiving “multiple pensions before the issuance of the mentioned order,” it added.

But the requirement to choose a single pension will be enforced for government employees re-employed on or after January 1, 2025.

Family pensions will be calculated based on the pension being received rather than a baseline amount.

The calculated pension will serve as the baseline for any future increases.

Read more

Govt introduces pension reforms, here is what will change

Govt modifies pension scheme to reduce burden

Federal govt sets family pension duration at 10 years for retired employees