New Pension Reform Budget 2023-2024

ByShahid

Jul 2, 2023

The pension reforms announced in Budget 2023-24 are as follows:

Abolition of Multiple Pensions: A person who is re-employed in a pensionable job after retirement will be entitled to only one pension. The family of the pensioner will also be entitled to only one pension.
Pension succession: Family pension will be given to unmarried/widow/divorced daughter only for 10 years after the death of the pensioner.

No compound increase in pension: Increase in pension will be given on the gross pension (GP) drawn at the time of retirement. There will be no compounding of additions.
Contributory Pension: The government will now deduct a certain amount from the salary of government employees and give them pension after retirement.
Either Salary or Pension: Re-employed government employees have to choose between drawing salary from new job or pension from previous service.
The moral of the story is that it is better to go into business after retirement than into a job. This is because the new pension reforms have made it difficult for pensioners to get pension from multiple sources. Additionally, a contributory pension means that pensioners will have to contribute to their own pension, which will reduce the amount of pension they receive.

New Pension Reform Budget 2023-2024