Contributory Pension Scheme – Amendments in Punjab Civil Servant Act 1974

Contributory Pension Scheme – Amendments in Punjab Civil Servants Act, 1974

The Services & General Administration Department, Government of Punjab issued a letter No.SOR-III(S&GAD)2-68/2002 dated 2nd July 2024 regarding amendments in Punjab Civil Servant Act 1974. Through these amendments in the Act, a new pension scheme called ” Defined Contributory Pension Scheme” has been launched in the province and made effective w.e.f. 14 June 2024 which will implemented on newly appointed govt servants or regularized after its implementation. These amendments are:


Amendment of section 2 of Act VIII of 1974

“(b-a) “Defined Contribution Pension Scheme” means the pension scheme stipulated under subsection (2) of section 18;”.

Amendment of section 12 of Act VIII of 1974.– In the Act, in section 12, in subsection (1), for clause (i), the following shall be substituted:

“(i)    on such date after he has completed twenty years of service qualifying for pension or twenty years of service participating in Defined Contribution Pension Scheme, as the case may be, or other retirement benefits as the competent authority may, in public interest, direct; or”.

Substitution of section 18 of Act VIII of 1974.– In the Act, for section 18, the following shall be substituted:

Pension and gratuity.– (1) On retirement from service, a civil servant appointed before the commencement of Punjab Civil Servants (Amendment) Ordinance 2023 shall be entitled to receive such pension or gratuity as may be prescribed:

Insertion of new Section 18-A in Act VIII of 1974: In the Act, after section 18, the following new Section 18-A, shall be inserted.

18-A Defined Contributory Pension Scheme: (1) A person appointed or regularized, regardless of the effective date of regularization in case of the latter, as civil servant on or after the commencement of Punjab Civil Servants (Amendment) Ordinance 2023 shall participate in a Defined Contribution Pension Scheme as may be prescribed:

(2) In the Defined Contribution Pension Scheme, the Government, as employer, and a 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fund until retirement of the employee and the accumulated balance in the pension account, at the time of retirement, is withdrawn or invested further to generate monthly income during post retirement phase, subject to exceptions as may be prescribed.”.