The Sindh government has resolved to revise the Civil Service Act of 1973, effectively ending the provision of monthly pensions for employees recruited after July 2024.
Instead, these employees will contribute to the Sindh Employee Benefit Scheme, which is partnered with the provincial government and receive a golden cheque gratuity upon retirement.
According to the Sindh government, this adjustment aims to alleviate the fiscal strain pensions place on the budget, as a substantial portion of funds is currently allocated to pension provisions.
The Sindh cabinet, meeting at the CM House, recently sanctioned the Sindh Defined Contributory Pension Scheme 2024, set to commence on July 1, 2024. The cabinet also endorsed the addition of a new subsection to a section of the Sindh Civil Servant Act 1973.
Under the proposed amendment, any individual appointed or regularized as a civil servant from the effective date of the Sindh Civil Servant (Amendment) Act, 2024, will be categorized as a civil servant but excluded from pension and gratuity eligibility.
Instead, they will engage in a Defined Contribution Pension Scheme. Upon retirement, civil servants will receive the accumulated sum of their contributions and those made by the government to their account in the designated fund, distributed in the prescribed manner.
